The On-Demand Economy
Now Employs 34% of the American Workforce
Sometimes called the gig economy or the On-Demand, this new way of getting work done connects qualified workers in thousands of fields directly to the clients and customers who need their services. This type of connection benefits both parties in multiple ways and has added $715 billion to the U.S. economy every year!
The traditional employer/employee economic model has been slowly crumbling since the 1970s. 53 million Americans now consider themselves freelance workers (at least part-time) and enjoy the freedom to augment their current salary or replace it altogether.
How Technology is Creating New Jobs
One of the biggest facilitators of this new gig economy is technology. Websites and mobile apps which allow freelance workers to showcase their specialties and connect with clients have nearly replaced traditional help wanted ads. These platforms (like SendWork) provide a number of benefits for both workers and potential clients.
Benefits of Work Matching Platforms for Workers
- Workers earn livings without submitting to traditional employers—no true salary caps or restrictive weekly schedules
- Workers find with clients with little or no upfront investments–nearly eliminating advertising costs
- Success is reputation-based—solid work ethic translates directly to money in pocket
Benefit of Work-Matching for Clients
- Clients easily find the skilled workers they need—no searching through Yellow Pages or business listings
- Clients deal directly with workers—translating to flexible scheduling and lower overall costs
- Clients choose workers based on actual feedback, not a brand name
On-Demand Model Creates Higher Wages
The on-demand economy increases what job market experts call “fluidity.” Traditionally fluidity meant quitting one company and hiring on with another. In an on-demand or gig economy fluidity is defined as a worker’s ability to shift between jobs or gigs.
This increase in fluidity essentially translates to higher wages for workers but not necessarily higher costs for clients. How?
- Dealing directly with clients, freelance workers cut out the “middleman” and take home the lion’s share of a job’s wage
- Clients don’t pay company overhead (which can inflate a job’s estimate by as much as 35 %!)
- Clients can negotiate to pay wages they’re comfortable with, not set fees
Reputation is King in a “Gig Economy”
Traditionally workers rely on the brand name of the company they work. Even if they do tip-top work every time, their success (and the company’s) rests on the shoulders of its worst employee.
However, in an on-demand economy, it is the worker’s reputation that drives 100% their success. Education, licenses, and accreditation are important but honest client feedback is the most important part of a worker’s online work-matching profile. New clients rely on feedback to judge whether a freelance worker is the right fit for their job.
This reputation-based matching of a worker to client empowers both parties:
- Clients can choose the best freelance worker for their needs—and feel confident that the job will get done right.
- Workers can turn hard work and good customer service into future jobs and real money
The On-Demand Economy is Here to Stay
The number of freelance workers in The United States has steadily grown over the last two decades and now accounts for 34% of the entire workforce. Technology continues to advance and continually reshapes the relationship between freelance workers and the clients they serve. Simply put, it’s never been easier to be a freelance worker and it’s never been easier to find the right worker to get your jobs done.
To learn more about how SendWork helps freelancers connect with clients (and vice-versa) in the greater Miami area, visit SendWork today.