A gig economy was previously known as a ‘sharing’ or ‘collaborative’ economy. The gig economy is a dynamic setup wherein freelance jobs are becoming common. Under this arrangement, companies are shifting from employing permanent workers to onboarding independent, short-term contractors.

The gig economy is an alternative to a traditional full-time, permanent employee at a standard nine-to-five job. 

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How Does the Gig Economy Work?

The gig economy relies on digital platforms to connect workers to jobs. Think Uber drivers, Task Rabbits, or DoorDash delivery drivers. Gig workers operate as independent contractors and are responsible for:

• Paying their own taxes
• Finding gigs using technology
• Accepting job on their own terms (i.e. an Uber driver deciding when to start driving and which rides to accept)
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The gig economy has many benefits for employers and employees alike:

• ‍Flexibility: The nature of the gig economy is flexible because independent contractors work on their own terms. They accept and decline work based on their availability. For individuals with multiple jobs or other commitments, like school or child care, the gig economy provides flexibility.
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• Extra Income: The gig economy provides the opportunity for individuals to supplement their income with flexible work arrangements. They can easily fit these into their schedules and work around other jobs and commitments.
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• Access to Talent: The gig economy provides employers with a way to access specialized skills at affordable rates. The gig economy works well for specific industries like transportation, food delivery as well as digital creative services like copywriting, content writing, graphic design and software development.

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Onboard Independent Contractors Anywhere with Borderless 

Make managing and paying your independent contractors easy with Borderless. We handle all compliance and payroll details for you, so you can focus on growing your business. Book a demo today and see how Borderless can work for you.