The rise of independent workers in the USA is a trend that has been on the rise in recent years. This trend is driven by several factors, including the growth of the gig economy, advances in technology, and changes in the way people work and view their careers.
Four factors driving the growing gig economy
- One of the main drivers of this trend is the growth of the gig economy. The gig economy is a labor market characterized by the prevalence of short-term contracts or freelance work, as opposed to permanent jobs.
The gig economy is growing about 3 times faster than conventional jobs.
This has led to an increase in the number of people who are working as independent contractors, freelancers, or gig workers. According to a report by the Freelancers Union, 53 million people in the USA are now independent workers, which is 35% of the total workforce.
- Another factor that is driving this trend is advances in technology. The rapid increase of smartphones and other mobile devices, as well as the growth of online platforms and marketplaces, has made it easier for people to find work and connect with clients. This has enabled many people to work as independent contractors or freelancers, even if they don't have a traditional office or employer.
- The changes in the way people work and view their careers are another factor. Many people now see their careers as a series of projects or gigs, rather than a traditional job. They want more flexibility and control over their work, and they are willing to trade job security and benefits for this freedom.
- The rise in independent workers has significant implications for the staffing industry. Staffing agencies have traditionally focused on filling permanent positions for companies, but now they are increasingly being called on to find independent contractors and freelancers for short-term or project-based work. This requires a different approach to recruiting, screening, and managing workers, as well as different legal and compliance considerations.
About 50% of US employees will be part of the gig economy by 2027.
How can the staffing industry gear up for this rise?
- Staffing companies can prepare for the rise of independent workers by developing a strong online presence. This includes having a professional and user-friendly website, as well as active social media accounts. This allows independent workers to easily find and apply for jobs and also helps to promote the company's brand.
- Staffing companies can also consider offering the benefits of operating with high-end agile software like NextCrew and perks to independent workers. This can include things like health insurance, retirement savings plans, and other types of benefits that are typically associated with full-time employment. This can be especially appealing to independent workers who are looking for more stability and security in their work.
- Another way that staffing companies can prepare for the rise of independent workers is by offering a wide range of services. This includes not only traditional temp and temp-to-perm positions, but also project-based and freelance opportunities. By offering a variety of options, staffing companies can appeal to a wider range of independent workers and increase their chances of filling positions.
- Finally, staffing companies can prepare for the rise of independent workers by building strong relationships with clients and other businesses in their industry. This can include networking events, tech-software operations like Nextcrew, industry conferences, and other opportunities to connect with potential clients and partners. By building strong relationships, staffing companies can create a clean stream of job opportunities for independent workers, and increase the chances of long-term success in the gig economy.
Overall, the rise in independent workers in the USA is a trend that is here to stay. Staffing agencies need to adapt to this trend by finding new ways to attract, screen, and manage independent workers. This requires a different approach to recruiting, screening, and managing workers, as well as different legal and compliance considerations. By understanding and adapting to this trend, staffing agencies can take advantage of the opportunities and growth potential that it presents.