6.24.2 Gig Economy and Non-Traditional Employment

• What is the gig economy characterized by?

  Short-term, flexible jobs
• Gig workers value the flexibility
• Technology platforms like Uber and Airbnb facilitate gig work.
• What benefits do traditional employees typically receive that gig workers do not?

  Health insurance, retirement plans
• One major drawback of the gig economy for workers is job insecurity
• What are two key characteristics of gig workers?

  Independence and flexibility
• Gig workers often work on a project-by-project basis.
• Who manages the benefits of gig workers?

  Self-managed
• The gig economy highlights the autonomy of workers but also the lack of job security.
• Order the factors driving the growth of the gig economy:

  1️⃣ Economic uncertainty leads businesses to prefer flexible labor

  2️⃣ Technological platforms facilitate gig work opportunities

  3️⃣ Workers value flexibility and autonomy
• What type of economic conditions often drive the growth of the gig economy?

  Uncertain economies
• Changing workforce preferences, such as the desire for flexibility, contribute to the gig economy's growth.
• What are the two key characteristics of gig workers?

  Independence and flexibility
• Traditional employees have fixed hours and location.
• Gig workers have low job security
• Match the type of employment with its benefits:

  Traditional Employment ↔️ Benefits provided by employer

  Gig Employment ↔️ Benefits are self-managed
• Order the following factors driving the growth of the gig economy:

  1️⃣ Economic conditions favoring flexible labor

  2️⃣ Technological advancements enabling gig platforms

  3️⃣ Changing workforce preferences for autonomy
• What type of job security does traditional employment offer compared to gig employment?

  High job security
• Hiring gig workers reduces overhead costs for businesses.
• How does workforce scaling differ between traditional and gig employment?

  Slower for traditional
• One major challenge of the gig economy for businesses is quality control
• Gig workers' lack of investment in a company can lead to issues with loyalty and retention.
• Match the employment type with worker loyalty:

  Traditional Employment ↔️ Higher worker loyalty

  Gig Employment ↔️ Lower worker loyalty
• Quality control in traditional employment is easier due to direct supervision
• Regulatory compliance is more complex for independent contractors compared to employees.
• Worker loyalty is higher in traditional employment due to job security and benefits
• What is one challenge of the gig economy for businesses related to worker loyalty?

  Lower retention
• The gig economy is characterized by short-term, flexible jobs performed by independent contractors.
• What type of hours can gig workers typically choose?

  Their own hours
• Technology platforms like Uber and Airbnb facilitate gig work
• Job security is higher in gig employment compared to traditional employment.

  False
• What type of income do gig workers typically receive?

  Project-based income
• Gig workers are known for their independence and flexibility
• What is one technological advancement driving the growth of the gig economy?

  Online platforms
• Workers value the flexibility of gig work, contributing to its growth.
• Gig employment is lower in cost due to no salaries or benefits
• What is one cost-saving benefit of the gig economy for businesses?

  Reduced overhead costs
• The gig economy allows businesses to access specialized skills from a global pool of talent.
• Gig workers are lower in cost because they are only paid for work done
• Arrange the following challenges of the gig economy for businesses:

  1️⃣ Quality Control

  2️⃣ Regulatory Compliance

  3️⃣ Worker Loyalty and Retention