Gig economy: How do rich people benefit from gig economics?

The gig economy is prospering: Whether it’s transporting people, delivering food, walking dogs, cleaning houses or managing property rentals, around 57 million Americans do some sort of work in this Gig market. Everything is managed just with a single tap on the mobile app.

Both rich and poor profit by the gig economy culture.

Rich individuals can extend their business at a lower cost, earning them profits.

Needy individuals have more jobs they generally wouldn’t have in the traditional economy.

Taxis on hire (Uber/Ola) is one of the examples of the Gig Economy. The business costs in millions. At the same time, drivers are having an opportunity to earn using this expensive business. In developed countries with Gig work flexibility, even rich people are opting for part-gigs as drivers, delivery boys, caretakers & on-demand IT/Software project supporters.

The gig economy is a result of two truths:

• • Labor regulations have made it amazingly costly to contract full-time employees. You need to pay them the minimum pay permitted by law, overtime will be charged, payroll tax, benefits or health insurance expenses & many more additional charges. A $15/HR employee winds up costing $30/HR or more. Companies are relieved from full-time employee benefits by the expansion of this Gig economy.
  • The gig economy workforce is freelance and agreement based. Therefore, gig employees, as self-employed contractors, don’t get benefits, like medical coverage, from the technology platform organizations; rather, they should secure them all alone.
  • The gig technology has made it possible to copy the effectiveness of a full-time workforce without paying all the above-mentioned expenses.

How Business Can Benefit From The Gig Economy?

Organizations that contract freelance employees are often able to avoid middle agent & talent-hiring costs.

Organizations that work with gig workers are often able to choose talent structure a pool that is more diverse. The gig economy has opened up open doors for ladies, minorities, and individuals living in developing countries. Companies can hire them on budget.

It takes less time to connect a certified & ready to work on a project using an online freelance marketplace. It is considerably simpler to hire a talented freelancer than training a fresher or new employee.

There won’t be any permanent rigid contract between the freelancer & the company. Most projects are handled through hourly based workers on temporary agreements.

Gig worker & the job provider both can enjoy freedom (time, place & type of work) which is a new form of wealth – using this gig force employment.

Giving employers a practical solution for choosing best-fit employees for their business needs.

Communication between the employer and the freelancer made easy with mobile applications. They can edit the job & give additional requirements if needed. There is no agent policy in between.

The dynamic workforce is one of the benefits for businesses in this market. Gig economy allows companies to appoint workers on-site, timely based and location-based. They need not maintain a full-time worker for small gigs.

Conclusion:

Using the Gig economy, more people involved in a marketplace, everyone is getting benefited. Businesses are relieved from labor shortage problems & freelance economies are benefiting from real-time high wages.