Financial Gig Economy - On the Uptick?

Financial Gig Economy – Is it on the uptick?

Gig economy – what is that you ask? For all the Baby-boomers out there, a Gig economy is the new, popular term that we old-schoolers used to refer to as freelance or contract work and was distinguished from conventional full-time employment.

So, is it true? Is the gig economy truly on the uptick? Seems so… and this bull market is certainly no short trend. Of course, being a nerd, I’m inflicted with curiosity and proceeded to consult the National Bureau of Economic Research for empirical proof (comes natural as an economics major). There it was – in bold stats. Almost 5.2 million new workers had entered the gig economy since the pandemic by 2021[i]. Newer 2024 stats are suggesting an even higher number, with more than 36% of workers now engaged in contract labor. Some estimates are as high as 68 million[ii] of the American workforces.

Sounds like an Exodus dispersal. And exactly who is going to fill the void and how? It would require almost a third of the employers to hire contract-based talent to navigate these parting waters. Staying with my metaphor, whether you are staying in Egypt with the time-honored employment model or are venturing into the parting sea with the virtual part-time freelancers, the diaspora of fractional employees is here and expanding.

Of course, that led me to my next question. Exactly what part of this labor force was engaging in gigs? Is it white collar, blue collar, young, or old? Turns out that the most popular industries in gig economies are transportation, art design, and web development (no secrets here). But to my surprise, the white-collar, executive level – suits that are highly educated and experienced - are the most in demand and occupy roles like CEO, CFO, CSO, and Finance gurus on a contractual basis.

Rendering the newer definition of fractional "gig" employment, many professionals have already been participating in a gig economy, as in the local Certified Public Accountant or Architect. But does fractional contract gigs really work for the micro-economy on a larger scale ? It is intriguing, since businesses are all about maximizing profits, minimizing losses, and creating efficiencies. Keep in mind that hiring a part-time employee to do a specific job for a minimal amount of time is not a new idea. Early forms of gig work even in upper management has happened in in the past, but lets be real - Fractional Executives were uncommon! The growing trend of hiring an executive for a short expanse of time is still very new and innovative- even for times such as these of technological advances. Hiring an expert for only as long as needed certainly promotes good economics and astute business practices of efficiency! Many companies, whether established or just starting up, have challenges in achieving their financial goals or promoting growth. For instance, not all business owners are astute in financial affairs or metrics, strategy, or product pricing. The advent of technology has certainly now opened opportunities for part-time experts to assist for a fraction of the cost of a full-time executive employment.

So, as we re-vitalize ourselves in this new generation of a digital virtual world, I think we can securely settle in this new land of outsourced executives. Especially knowing that talented, experienced, efficacious executives are now available with a click. It is exciting to be able to witness the change in the landscape... Now that the gig gurus will be readily available to cultivate the small business territory into a fruitful harvest of healthy profit margins!

See my next blog on “When should a business consider hiring a virtual fractional (part-time) finance executive?”

Though hiring a fractional finance executive can still be difficult to find, Gorka Business Solutions are ready to help supply your part-time finance professional for a fraction of the cost.
Check us out at GorkaBusiness.com!

Endnotes:
[i] National Bureau of Economic Research. “The Evolving Role of Gig Work during the COVID-19 Pandemic” The Digest. 08/01/23. Retrieved from: https://www.nber.org/digest/20238/evolving-role-gig-work-during-covid-19-pandemic

[ii] Anderson, Arabella. “18 Telling Gig Economy Stats in 2024” North One. August, 2024. Retrieved from: https://www.northone.com/blog/start-a-business/gig-economy-statistics