Breaking Down the Gig Economy: Pros and Cons for Freelancers 

he gig economy has been growing rapidly in recent years, with a growing number of workers opting for flexible, short-term contracts instead of traditional, long-term employment. While the gig economy has been traditionally associated with industries like ride-sharing and food delivery, it has now made its way into the film production industry as well. Film production companies, both big and small, are increasingly turning to freelance and contract workers to fill positions on a project-by-project basis. This shift has not only changed the way the film industry operates but has also created a new set of challenges and opportunities for those working in the industry. So, what exactly is the “gig economy” and how does it affect workers… What are the pros and cons?

Positive Aspects of the Gig Economy for Employees

Adaptability to Timetables

Some people just can’t get into the routine of working a regular nine-to-five job on Monday through Friday. Perhaps they have to attend to family matters or they’re just not morning people. They might want to enjoy a long, relaxed lunch with a friend without being interrupted by their constant stream of emails. Whatever the case may be, the core of the gig economy rests on the principle that workers should be free to set their schedules and priorities.

Pursuing One’s Career Interests

Let’s say you’ve built a successful career, only to realise that it wasn’t you calling all along. You would have had to take a huge risk and leave your job to pursue your dream full-time in the past. Now, no longer. One aspect of the “gig economy” is the flexibility to devote as much time to a side gig as desired without jeopardising regular income.

Limiting Wage Increases

It’s not worth your time to try to negotiate your salary very often. There could be a set starting salary, annual raises based on a set percentage, and bonus payments for a meeting or exceeding quotas. Since workers in the gig economy typically switch from project to project, they rarely have a set salary or rate. If a client isn’t willing to pay what you’re worth, they’re free to go elsewhere, and you have the same right.

What Are The Drawbacks For Freelancers

No Perks

Do you recall how recently we discussed the characteristics of a salary-based worker? Despite its flaws, it does provide some advantages.

Irregular Payment Schedules

There is a trade-off for the freedom to choose your hours and output. Even if work has been slow, you can rest assured that you will still be paid at the end of the week. However, the fluctuating income that comes with working gig jobs is often difficult to ignore.

That’s a significant amount of money to lose if you’re having a slow week selling items on Etsy or picking up riders for your rideshare business. Workers in the gig economy need a cushion in their finances to get through the inevitable slow periods that can last for weeks or months.

An Unbalanced Schedule Between Work and Personal Life

As a result, you are essentially your boss. A schedule that works for you is entirely up to you. Your pricing structure is determined by you. Even though this can bring many employees much-needed independence and fulfillment, it also has the potential to rapidly destabilise their work-life balance.

Because no one else is going to ensure your financial and career stability, it’s understandable that you would devote a great deal more time to doing so. That’s because there isn’t the comfort of knowing you’ll get paid every two weeks or the routine of clocking in and out at set times. Regardless of how we characterise the gig economy, we can expect to experience burnout.

For Those Who Make a Living in the Gig Economy, What Does Success Look Like?

Understanding what the “gig economy” is and how it works are two different things. Try some of these alternatives if a 9-to-5 workweek just doesn’t cut it for your professional needs and goals.

Negotiate a Salary That Will Allow You to Live Comfortably

Building a robust financial backbone is essential for success in the gig economy, whether you’re expecting a boom or bust shortly. Figure out how much money you’ll need to bring in each month to cover your essential expenses, your wants, your taxes, and any contingencies that may arise.

Create Time Limits for Your Workday

Many people feel like they are living for their jobs rather than their lives. If you want to keep your work from seeping into every other aspect of your life, you must set and stick to a work schedule, even if you work from home.

Traditional Employee Benefits Should Be Reinstated

When you don’t have health insurance or paid time off on a regular, what benefits does the gig economy provide? While this is certainly a disadvantage of the gig economy, it is a necessary tradeoff for the freedom of setting one’s hours and salary. Don’t ignore the advantages of a regular paycheck, though. When possible, put money aside for health insurance, as it is essential for the well-being of you and your loved ones. And even if you’re enjoying every second of your side gig, you should still take breaks from time to time to avoid burnout.

What Are The Benefits of The Gig Economy For Employers?

The question “what are gig economy jobs?” is typically examined through the eyes of the employee. Nonetheless, businesses should also think about how they can benefit from this trend and how they can adapt to it for the best results.

Make Connections With Many Prospective Employees

In light of the aforementioned, it’s not uncommon for gig workers to leave in pursuit of a more desirable position elsewhere. Therefore, it is incumbent upon you as an employer to plan for the worst. Even if things have been running smoothly and everyone seems content, it’s important not to get too comfortable with the people you have on staff. In case you suddenly need to fill a position, it’s a good idea to keep a Rolodex (or its 2023 equivalent) and constantly expand your network of contacts.

When it comes to benefits, what can businesses expect from the gig economy? Possibility of reducing payroll costs through cost-effective hiring and employee retention. There is a high cost associated with employee turnover. Even though you need not provide your employees with the usual perks, it is still in your best interest to make the workplace a place where they can feel appreciated and, hopefully, remain loyal to the company. It’s only fair to compensate them adequately. Pay attention to their gripes and worries. Get them excited about extending their visit or returning for another season.

Make Use of a Payroll Program for Your Independent Contractors

Discussing the gig economy would be incomplete without addressing the labor-intensive and frequently perplexing payroll system that goes along with it. There is a lot to consider and manage compliantly, such as the varying employment laws in different states, the varying pay rates for crew members, and the additional payments for meal penalties and kit fees.

To Summarise

There is a wealth of information available to help you deal with this dynamic environment, from simple onboarding options for both employees and employers to sophisticated payroll software that can process a wide variety of payroll taxes, laws, and payment methods. You can start reaping the gig economy’s many benefits as soon as possible with these tools.