Let's Talk about the Hustle Economy

Even before the pandemic, about 36% of the US workforce consisted of gig workers in 2018, and 33% of companies used them for their day-to-day tasks.

With the COVID-19 outbreak, it has increased manifold, owing to the rise in remote working. It’s being predicted that this number will reach 43% by the end of the year. Hence, this hustle economy, another name for the gig economy, which comprises freelancers, short-term contractors, independent contractors, and consultants, is gradually turning out to be one of the major sources of income for the unemployed population.

The pandemic has shown us that anything can change at any point in our lives without even a warning. Companies that looked down upon the ‘self-employed’ population or independent contractors before are now hiring them to save their businesses. Millions of full-time employees have gone out of work, as the employers are unable to pay them. These employees are finding some financial solace in the hustle economy and taking up contractual works to support their families. Now, about 85% of workers want to continue with these contractual jobs at least for the next 5 years. And when the situation returns to normal, some of them may even find this mode of employment quite satisfying, thus leading to a paradigm shift.

If you’re wondering how you will benefit from this shift, read on!

More and better sources of income
The hustle economy offers multiple sources of employment for the people, especially in the field of IT, including AI (Artificial Intelligence) and Blockchain. They can get several opportunities for short-term contracts from several companies who are struggling to cut down business expenses. As the gig workers are independent and don’t require employer-generated benefits, from health insurance to equipment coverage, internet connectivity to electricity, employers save a lot of costs. Hence, the more businesses try to consolidate their expenses, the better work opportunities these people will get. It’s being assumed that more than 50% of the US workers will be working independently or as freelancers by 2023.

Preference over full-timers
With an increase in the WFH (Work from Home) trend, the hustle workers have suddenly started getting recognized by the industry biggies. As they have been working remotely for a long time, unlike the professionals, who are just getting used to it now, the companies are hiring them over full-time professionals to handle critical projects. The employers are even finding them more affordable and feasible than their full-time workforce, as the hustle workers are quite aware of the nitty-gritty of remote working. Although the full-time workers will not be completely wiped out by this trend, a major preference for the freelancers will be created in the future, as the organizations come to terms with the idea of working from home consistently.

Flexibility will be at its peak
At some point in their career, many full-timers have wished to switch to the gig economy because of its inherent flexibility. Not only can you work from home, thus avoiding traffic hazards and losing no time over unnecessary meetings and seminars, but also you can work at your pace, any time of the day. You’re free to choose how many tasks you’ll complete in a day and when. This increased flexibility helps you balance your work and personal life better and gives you more time to enjoy things that matter for you.

Changing the corporate landscape in the gig rule
In a post-COVID world, most of the full-timers, who have gotten used to the idea of remote working and flexibility, may not want to return to their 9-5 jobs. This will change the corporate landscape with flexibility being at the center of all hiring programs. Hiring managers will keep it at the top of their list of perks to bring eligible candidates on board and also offer them frequent remote working opportunities. And the employers will also consider giving the hustle workers a chance to contribute to their revenue by appointing them for short or long-term projects from time to time.

Startups and SMEs will realize the immense potential of the gig economy in enhancing business growth, as working with independent contractors can easily help them cut down the expenses of hiring full-time workers. So, the entire work culture of the SMEs, as well as large enterprises, will change drastically, and the gig workers will be welcomed with open arms, unlike previous times, when they were laughed upon.

Read: How Startups Can Ensure Success While Working With Freelancers

The major challenges and how to overcome those
Despite all its advantages, the hustle economy also has some challenges that may hinder growth. Go through the following suggestions to identify them and understand how to overcome them:

• Unstable income – Most of the gig workers don’t enjoy a stable source of income, which is one of the major drawbacks of the hustle economy. However, you can overcome this issue by not putting all your eggs in one basket, or constantly looking for multiple projects to work on.
• Inconsistent payments – There’s also no particular time for payments of your dues. While some companies may offer to pay immediately after completing the task, some others may ask you to wait for the end of the month or the beginning of the next. You should request them to transfer the payment within a certain date every month to avoid the hassles.
• Risks of fraud – As you work with multiple companies, the chances of being scammed by fraudulent ones increases automatically. Hence, you should check the background of any company you choose to work with and never sign any contract unless you’re 100% sure of the organization’s reputation.

The gig economy will definitely grow in the coming days and may even surpass that of the regular economy. It’s best to be prepared for the change instead of resisting it. While you may have to put on greater efforts in the beginning to establish your brand identity, you’ll enjoy far-reaching benefits with this flexible and high-paying working system. Now is the time to start building your career slowly around this before it is too late.

You might also enjoy reading –

• Did You Lose Your Job During COVID-19? Here’s What to Do
• 10 Tips to Help You Ace an Online Interview Amidst COVID-19 Crisis
• 10 Remote Working Jobs That Are High in Demand
• Effective Ways to Stay Productive While Telecommuting