Since 2010, I have been involved with the gig economy, and I love it. It can be difficult to understand how the gig economy works.
Mellow’s “ Decoding Gig-Economy Terms ” can help you navigate this new world of work.
The Gig Economy in 2025
Although no one can predict what the future holds, it is clear that the gig economy will not disappear. In 2022, the World Bank estimates that there will be 435 million gig-workers in the world. This number is growing. Some people don’t consider themselves “gig” workers, but they want the flexibility and freedom of a gig work.
The gig economy is not a one-man show anymore. Many gig workers are experts in their field. Startups Magazine says that by 2025, “high-skilled freelancing in areas like AI, cybersecurity and healthcare will form a greater part of the workforce. They are seeking autonomy and varied opportunities.”
Even if you are unaware, your company likely uses freelancers, contractors, consultants or other gig workers. You hired a cleaning service? It’s possible that a freelancer will show up to clean your floors. You called the HR consultant? She’s probably a freelancer with a mixture of long-term (permalancer!) She is probably a self-employed gig worker with a mix of long (permalancer!) Who delivered your lunch, by the way? A gig worker.
The new world of work: Understanding the new reality
Each country has its own rules regarding contractors and traditional workers. There are strict rules in the United States regarding what a contractor and employee are. If you control the location and time of work, and are their sole client, then they are legally an employee. They should be paid and treated as such.
You can either have a workforce that is made up of regular employees, contractors who are employees, or independent contractors. Each business structure comes with its own set of advantages and disadvantages.
You can expand or contract quickly if you hire a large number of freelancers and contractors. This is dependent on the market conditions. You may not be hired for your next project, even if you liked the work of that freelancer. They are free to spend their time as they please.
While you can place restrictions on employees and ask them to focus on your company from 9-5 Monday-Friday (or any other schedule you choose), you cannot terminate an employee if they do not perform up to standard.
How about tapping into the global market?
Our ability to instantly communicate with almost every corner of the world has made it smaller. While there are laws that govern who can work where, your business can still go global.
Mellow is a company that allows you to hire people from anywhere in the world. They will handle all the regulations and laws and take care of the payment. You may end up in legal trouble with a law you have never visited.
There are freelancers all over the world. I’ve worked with them in India, Brazil and Nigeria.
You can’t keep your employee in the US and then have them work in Canada for 6 months. This will land you in serious trouble even if your employee is legally allowed to work in Canada.
It can be challenging to navigate this new world, but you will also have access to a wide range of additional talent. It’s not necessary to commit to a long-term job to become a good gig worker. You are also not limited to those within 45 minutes of your office. This is a new way of working.
