Those considering joining the gig economy might want to consider the insights of Assistant Professors Prajakta Korte and Edmund Hershberger, who offer up the pros and cons of the change.
The gig economy is all around us, but the term itself may not be as widely known. Essentially, the gig economy includes services such as food delivery, accounting, manual services, tutoring, caregiving, substitute teaching, etc.
A “gig” usually refers to temporary work for a specific duration. The gig economy reflects the widespread nature of freelance work. These employees may work for a company but not on the company’s salary, or they may work for a specific individual. In both cases, there is an agreement regarding the work, duration, and payment.
According to TeamStage, the gig workforce is not only growing and more popular, but it is also increasing more than the regular workforce.
Statista shows rapid growth in freelance work and predicted expansion through 2028.
Edmund Hershberger, dean of the School of Business and Marketing, said there are positive and negative ways to look at the gig economy.
“Young people have the flexibility to structure their working lives in a way that works for them, but the tradeoff is that they don’t get the stability or steady career growth that a traditional career path offers,” Hershberger says. “While there are benefits, we also see potential drawbacks.”
Prajakta Kolte, an assistant professor in the School of Computer Management and Information Services, said that while the gig economy can be beneficial for an individual’s schedule, it can also have a negative impact on finances.
“It offers more flexibility and control than traditional employment. You have the flexibility to work wherever and whenever you want, which may be a benefit for some,” Korte says. “But there are also downsides, like poor working conditions and not the safest environments. In those situations, you might not make as much as you’d like, or you could lose income due to technical issues.”
Hershberger says things were very different when he started working: Back then, it was common for people to build their careers over time at a few or more companies, whereas today, people tend to work multiple different jobs.
“It could erode the culture of expertise, the culture of focus,” Hershberger said. “I built my career as a brand manager, and I’ve been doing that for 30 years, as opposed to, ‘For the last 10 years, I’ve done this, that, and 14 other things.’ Does that really lead to anything big? That’s my question.”
Korte said gig economy workers should aim for what will benefit them in the long run.
“People starting to work in the gig economy need to know that whatever they do, they need to make sure they get a good return on their investment,” Korte said.
Korte said that those who choose to work in computer science for a few hours at a small company with decent pay could see a good return on their investment.
“On the other hand, if you’re working as a delivery driver for less than minimum wage, that might be a negative,” Korte said.
Hershberger said stability is a long-term issue for gig workers that they should also consider.
“I think we tend to have very high expectations of people who take on these gigs about what they can do with it. It’s great for people to have flexibility and be able to earn income in flexible ways… [but] “You’re always looking for the next job, the next job,” Hershberger said. “I think it makes it a lot harder to think about saving for retirement, having a family, all of those things.”
But Korte said we should adapt to and make the most of the gig economy and its new rise.
“The impact of the gig economy, or gig economy, is going to continue. People may want to understand how it works and help new generations understand what it is and how it can benefit them,” Korte said.