How UK gig workers are navigating the dynamics of the unique British labour force

The gig sector is taking off at lightning speed, and with the rise of modern technology, individuals can now work remotely for businesses located outside their home countries. You may have even unknowingly become a part of this fast-growing trend by ordering food online, teaching, content writing, offering tech-related jobs online or even virtually assisting.

This exciting opportunity has opened up a whole new world of work, where partners, freelancers and other vendors can thrive. A recent report reveals that approximately 3.7 million people in the UK are working low-paid and insecure jobs.

Thanks to the accessibility and convenience of digital platforms, the gig sector has become a popular option for many, especially since the COVID-19 pandemic. It started with the pandemic restrictions, where there was a global demand for more flexible forms of working (namely hybrid working-) to people really turning fully to the gig sector. It's a versatile field that appeals to people of all ages and backgrounds, as anyone can tap into the vast opportunities it offers.

For many people, working a nine-to-five job doesn't interest them again. Instead, they are seeking out independent work that lets them earn income on their own terms. In the gig space, many people often work as independent contractors in temporary placements or part-time positions. Employers, in trying to cut costs like health benefits (among other costs), employ temporary workers or part-time staff to work for them. However, not everyone may be familiar with the technology needed to succeed in the gig space, which can lead to some being left behind.

As the world keeps evolving, it is essential to keep up with the growth of the gig sector, which shows no signs of slowing down. In the UK, many individuals are discovering the power of the gig economy for themselves, and we will be exploring this exciting and ever-expanding sector.

What is the GIG sector?

The gig economy refers to a free market system where independent workers, project contractors and freelancers, among others, are employed for temporary or contract-based jobs in return for being paid per gig, rather than being employed as full-time workers and paid the regular wage. Instead of being employed full-time and receiving a regular wage, gig workers are paid for the individual tasks they complete.

The UK government has described the gig economy as "the exchange of labour for money between individuals or companies via digital platforms that actively facilitate matching between providers and customers on a short-term and payment-by-task basis."

In 2019, UK's Office for National Statistics (ONS), revealed the market size generated by the gig economy was a staggering £20 billion. According to the same report, the UK's gig economy employed 4.7 million individuals in 2019, which is a significant increase from the 2.4 million workers it employed in 2016. It was anticipated that the number of gig workers would increase by 7.25 million in 2022.

So, what does the future hold for the gig economy? The predicted market size for the UK's gig economy for the following three and five years is £45.5 billion with 10.69 million gig workers by 2024, and £63.25 billion with 14.86 million gig workers by 2026, respectively, with a calculated CAGR of 17.88 per cent.

The gig economy is growing in demand across various industries

While many experts feel the gig sector hasn't reaped many benefits from the government, gig labour is becoming more prevalent in the UK workforce. Numerous employers in various sectors throughout Britain are now seeking more gig labour. David Bloom, General Manager, Gig, Consumer, and Volunteers at Sterling, believes that the gig is "horizontal" as opposed to "vertical", and businesses in sectors like healthcare, banking, retail, logistics and manufacturing, use the gig model.

Recent data on the growth of the British gig economy reveal that there are now 7.25 million regular gig workers in the UK, which accounts for almost 22.1 per cent of the country's entire workforce. This is higher than the projected 14.7 per cent of the workforce expected to be employed in the gig economy in 2021. According to official data from industry groups and think tanks, approximately 6.07 million people worked regularly, at least once a week, in the gig economy in 2021.

Furthermore, studies indicate that since data collection began in 2016, around 9.33 million individuals have worked in the gig economy. However, this figure includes individuals who have worked on a non-regular basis, such as those who have worked only once to test the waters.

Pros and cons of the gig economy

Firstly, the gig economy allows flexibility. The ability to work on their terms is one of the main reasons why gig workers enjoy the industry, as gig economy employees are free to work any schedule they choose. Most of the time, a task will be assigned to a worker with a deadline, but when they begin working on their own, it is entirely up to them.

According to a study conducted by MetLife in 2019, aside from providing gig workers with liberty and flexibility, gigs also provide them with the opportunity to work on meaningful projects that give them a feeling of purpose. In other words, gig workers see their work as a means to meet greater demands.

Gig workers frequently look for businesses that provide flexible geographic locations, fewer time constraints, and improved access to virtual technology. Independent contractors are not obligated to operate in workplaces - instead, they do it in their own spaces. It can range from someone producing articles from the comfort of their home, which they may set aside as an office, to an Uber driver choosing their hours and the trips they want to accept. In fact, research by SEO agency, Reboot, reveals that people who work from home offices are more productive.

Reduced prices and expenses are also frequently cited as one of the key advantages of working in the gig economy. This is so that companies don't have to maintain expensive workplaces and big offices and can hire employees who don't work on-site. Additionally, using independent contractors fully eliminates costly expenditures like paid sick leave, retirement plans and benefits packages for employees.

According to the Corporate Finance Institute (CFI), today's workers are starting to place a higher value on flexibility than they did in the past. The CFI added that those who are interested in earning extra money are drawn to applying for jobs that have unusual work schedules. This kind of adaptability has a direct impact on workers' sense of motivation, which has a favourable association with output generation.

On the other hand, there are some disadvantages to the gig sector, with one being that the gig workers might not be as invested in their company as they would be if they were employed full-time. Gig economy employees also generally do not receive as many incentives as their full-time counterparts. Such a setup may lead to challenges with loyalty, lessen the chance of future employment, and lower overall work motivation.

Furthermore, the employment offered to gig workers is mostly casual and may lack the benefits that a full-time employee would receive, such as health benefits and sick leave, among others. Gig workers also usually receive lower wages than full-time employees. In addition to this, individuals doing gig work can feel isolated, which can negatively impact their mental health, and in turn, decrease productivity and quality of work.

Leveraging the gig economy

In today's fast-paced world, gig workers are becoming increasingly popular as the go-to solution for companies in need of specialised expertise. Competition in today's business landscape is fierce; organisations must constantly grow and adapt to stay ahead of their rivals. According to Sterlingcheck, there are a few key considerations to keep in mind.

One consideration is that organisations are compelled to grow and, for the most part, grow more quickly due to competition. They must carefully identify and consider their target audience, and the locations where they operate. In a market where there are multiple enterprises vying for the same customers' needs, organisations can better tailor their services and position themselves as the go-to option in the gig space.

Sterlingcheck also noted that it is not just about the location to truly scale up and stay competitive, organisations need to build out their worker pipeline. This means establishing relationships with independent contractors and freelancers who can provide services as needed. By doing so, organisations can remain flexible and responsive to the needs of their clients, no matter the location.

Sterlingcheck emphasised that by utilising already-existing gig platforms, industries without a dedicated gig workforce continue to engage in these practices. Traditional B2B brands might utilise gig organisations' services as a logistics division of their businesses as they grow. This inclusion enables both businesses to scale and flourish using a different strategy.

Additionally, Industry Today noted that gig workers are the ideal method for employers to find the best expertise for a particular project. The beauty of this approach is that employers do not need to comprehend anything other than the ultimate result. This allows organisations to work with the best person for each particular aspect of a project while simultaneously having access to a much larger talent pool and combating the skills deficit.

Gig workers can provide specialised insights and solutions to an issue because they are more likely to have a wider range of knowledge from other industries. This diversity of experience is highly valuable in today's rapidly changing business landscape. In some circumstances, hiring contractors can also save overall operational costs as, for instance, they might already have insurance and won't require substantial perks.

Industry Today also suggests that numerous areas, including HR, IT sales and marketing, have effectively used this workforce paradigm. Instead of giving every task to one regular employee, an employer might post projects to find the best person for the job. This approach ensures that the right expertise is utilised for each specific task, resulting in better outcomes for the project as a whole.

The gig economy gives employees the flexibility and independence to work at their own convenience. As a result, younger generations are increasingly seeking out work environments that allow them to work comfortably and flexibly. According to a recent Deloitte report, millennials and Gen Z participants identified adaptability and flexibility as the most critical attributes for successful companies. This aforementioned adaptability with work environments in the gig economy also enables workers to explore various career paths and develop themselves professionally without being limited to one specific field.

As the gig economy continues to expand, it becomes increasingly important for both companies and gig workers. Given their specialised skills and wide-ranging experiences, gig workers can provide distinct perspectives and solutions that may not be available from conventional employees.