The Gig Economy - Implications for Businesses

References to the "Gig Economy" are becoming increasingly frequent these days. And for good reason. According to the Freelancers Union, 53 million Americans now identify themselves as freelancers, 34% of the workforce[1]. According to a study by Intuit, the freelance workforce will grow even further to encompass up to 40% of the workforce by 2020[2]. This trend is one of the most significant shifts in the work environment in recent times, with more than 3 out of 10 workers no longer having a "traditional" relationship with an employer.

So what exactly is the Gig Economy? Simply, businesses that use non-employee workers to perform services. The workers can go by several names: freelancer, "gig-er", self-employed, moonlighter, contractor, and so on. Generally speaking, they are independent contractors paid through alternative methods to being paid through the business' payroll. For example, an independent contractor may be paid through an invoice while an employee is paid through a paycheck.

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