Evaluating Short-Term Gigs vs Full-Time Roles
by Pauline Fournier
In each edition of our Insights newsletter, Senior Career Consultant, Pauline Fournier responds to career questions that have recently come her way from people with whom she is working. In our Summer 2022 edition, Pauline shared some thoughts for those evaluating the pros and cons of a short-term gig versus a full-time role.
QUESTION: Should I consider a short-term gig or hold out for a full-time role?
ANSWER:
We’ve been talking about the gig economy for many years. When someone asks me if they should consider a part-time gig, my answer is often “it depends”. What is your financial situation? Do you need a job right away so you can pay the bills? Can you afford to wait for a full-time job offer?
A few statistics regarding the gig economy
Research shows that more and more people think of the gig economy as the best way for them to work. A gig can be a part-time or full-time assignment; the key is that it is not a long-term job. More than 57% of gig workers report working more than 40 hours per week. The Bureau of Labor Statistics reports that in 2017 the gig economy had 55 million participants, and it is anticipated that there will be more than 86.5 million by 2027. The gig economy is here to stay.
About 44% of gig workers report that their gig economy roles are their primary source of income instead of a side hustle. Some popular gig roles include freelance, consulting, contingent or part-time workers, rideshare drivers, TaskRabbit workers, and online marketplace sellers.
Advantages of the gig economy for workers and employers
An appealing advantage to those considering gig economy roles is that they provide more flexibility and independence than many full-time roles. In most cases, the worker can set a work schedule that fits in with their life responsibilities. They can choose where, when and for whom to work. McKinsey’s research shows that 78% of gig workers say they are happier than those working traditional jobs, and 68% report being healthier. If the assignment or the employer isn’t a good fit, it is easier to walk away.
The advantage for the employer is that they don’t have to spend a lot of time and money to find the right worker. They can hire as needed for projects or assignments and will save money by not paying for benefits such as holidays, vacations, and medical insurance. They pay by the job or hourly for only the hours worked. The employer can go to trusted sources to get workers who have already been screened and whose skills have been vetted. Often, if benefits are offered to gig economy workers, they aren’t at the same level as traditional workers and can be less expensive.
Disadvantages of the gig economy for workers and employers
Though the flexibility and independence of the gig economy sound good to many, there is more to be aware of. I often ask a person contemplating these roles about their relationship with risk. You may not have a steady income to count on. The company hiring does not usually pay benefits, leaving the cost of health care and retirement to the worker. I also advise that taxes, including the total cost of social security taxes, become the worker’s responsibility. Those who are self-employed, receive 1099 forms, or work in the gig economy are not eligible for unemployment assistance. (An exception was made during the height of the pandemic and expired in September of 2021.)
For the company, a disadvantage they may experience is the lack of commitment by the gig economy worker. Unless they are treated similarly to traditional employees, the gig economy worker often feels like an outsider and doesn’t have a sense of loyalty or commitment. They know they can walk away as soon as they find the next gig. You also need to be aware of legal and ethical issues. Some employers have used consultants or contractors full-time for long-term work and have not offered a benefits package, which is not legal in some states.
The bottom line is that if you are considering becoming a gig economy worker or hiring those who are, make sure you understand the advantages and disadvantages. It isn’t for everyone!
