These industries generate hundreds of billions of dollars in revenue each year, but they have few assets. Will businesses take the same approach to their employees? No one knows how employment will change in the coming years; nonetheless, we do know that these types of businesses have effectively upended long-standing traditional business models. Businesses based on collaboration, sharing or the gig economy have blazed a trail to a new paradigm in which businesses operate by attracting freelance entrepreneurs. Freelancers working remotely The gig economy has arrived Conditions surrounding the economy are constantly changing. With the increasing convergence of digital business technologies, parts of the economic landscape have shifted from a static, long-term employment-focused model to a newer, contract-based short-term model.
According to a study conducted by the McKinsey Global Institute, 150 million workers in North America and Western Europe work outside of traditional full-time jobs. McKinsey found that the "on-demand economy" is becoming the new trend in employment. In this type of economy, independent labor can engage in contract work rather than traditional work. Independent workers can find work through the ever-evolving digital platforms that propose a job-for-hire industry mailing list model. On these platforms, freelancers are able to create profiles that allow them to market their services on an hourly or per contract basis. As these digital marketplaces develop further, more and more professionals are attracted to freelancers. The transition to the gig economy is happening faster than you might think. As Randstad Canada puts it, 20-30% of the Canadian workforce already includes "non-traditional workers" when considering freelancers, consultants, contractors and temporary workers.
It will only trend upward from there, with 85% of companies surveyed looking to move to a flexible workforce within the next decade. In the US, PwC saw that 53% of all workers surveyed said they expected to be self-employed within the next five years. You might expect this trend to occur among lower-level employees; however, you would be wrong. Senior executives are placed on temporary assignments at smaller companies to share their experiences and provide wisdom to owners looking to grow their businesses. Once these kinds of jobs become more attractive at scale, recruiters will be able to market high-level talent to businesses in the management consulting space. The gig economy is here when new technology innovations help connect businesses with key experts, helping them at critical stages of business development. Short-term freelance jobs are not uncommon, says Brushfield. However, the way we do it now through technology is.
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