Recently, the term "Gig Economy" has become increasingly common in the professional press: it can be found in reviews of freelance platforms and analytical articles on the subject. And now we will briefly explain what the "Gig Economy" is, the advantages and disadvantages of this model, as well as the origin of this strange term.

SO WHAT IS IT?

The gig economy is a model in which employers prefer to hire freelancers and independent contractors rather than full-time employees. Typically, "temporary" workers are not hired full-time, and often only for a temporary project cycle or to perform a specific part of a project.

When an employee performs a job on a short-term contract or with informal arrangements at all, he or she is participating in the gig economy. Examples of such relationships are:

  • freelance order fulfillment;
  • working long hours on a temporary project;
  • working in a cab service;
  • food delivery;
  • renting an apartment for a couple of days.

There are many more examples, but we will not list them all. Moreover, every year there are more and more of them, because the share of the gig economy in the labor market is constantly increasing. The main thing is to grasp the essence of the concept: Gig Economy is any freelance work. 

BENEFITS AND FLAWS OF GIG ECONOMY

Pros

Both employer and performer benefit from this model of work.

The employer gets the same job done as from a full-time employee, and there is no need to spend on their prior training, as well as insurance, paid vacation, and no need to set up their workplace.

Freelancers also have the benefit of participating in the gig economy. Pluses for workers include:

  • the ability to take as many orders as you want: need more money - took more orders. There is no need to ask their boss for a raise or a bonus;
  • a convenient schedule;
  • often, remote work, which means savings on travel, more freedom, and always a pleasant atmosphere. 

Cons

The negative aspects of one side naturally follow from the pros of the other and vice versa. 

For the employer, the main disadvantage is the need to constantly look for new employees and get used to new people. This introduces a little instability into the work process.

For the employee, the disadvantage is the lack of social guarantees and overall stability.

HISTORY OF THE TERM

In fact, this article was written only because the term "Gig Economy" is not very clear to the Russian-speaking reader, and I would like to explain its context and how it is understood by the native speakers who invented it. 

If you go to a translator to find out the meaning of the word "gig", you get a translation like "concert" or "two-wheeled cart". This only confuses the reader even more and now we will clarify it a little bit. 

Etymology

One of the first documented ancestors of the word "gig," is "giglet," meaning "dizzy girl." It dates back to the 13th century and is part of Middle English. There are also ancestors of "gig" in other European languages: in Danish "gig", meaning "wolf"; in ancient Norwegian "geiga", meaning "to turn sideways"; in continental Germanic "geige", meaning "violin".

All the above-mentioned words have in common the meaning "rapid or rotating motion," either literally or figuratively. 

The first evidence of mentioning the word exactly in the form "gig" dates back to 1791, meaning "a light two-wheeled cart, often pulled by one horse," and also as "a small boat." 

Then, as early as 1905, the term "gig" appears in musical slang. The reasons for this "wandering" in different senses are not established. However, the word "gig" was most widely used in the 1920s, in jazz circles, to mean "a one-time musical performance. It also appears as a verb in 1939.

Since then, "gig" has not changed its meaning, but still referred only to the music industry. With the advent of freelance work, people remembered the word "gig" and decided to use it in reference to such professionals as well. After all, it accurately captures their essence: they do a one-time job, get paid and go on their way. Just like visiting musicians who give a concert, get paid, and tomorrow they are already in another city.

With the increase in Internet employment, this segment of the market needed a name and, again, society has found nothing more accurate than the "gig economy." That is, an economic model built on the type of gig-employment, that is, doing small projects for a one-time fee.

So now you are the smartest and can trump up this knowledge among your acquaintances.  

Conclusion

And so, today we have considered such a concept as "Gig Economy", the pros and cons of this phenomenon, as well as the origin of the term.

With all the advantages and disadvantages of the "Gig Economy", every year more and more specialists become involved in it, which means that in any case this phenomenon should be taken into account and used according to the situation, which will make your business much more effective.