According to Linkedin, Freelancers will represent 43 per cent of the global workforce by 2020, compared to a mere 6 per cent in 1989

The gig economy is a term coined to describe the trend of companies hiring independent contractors and freelancers instead of full-time employees. A combination of the rise in digital platforms such as Uber, Design Crowd and Hi-pages, as well as improved connectivity and a shift of business operations to the cloud, have laid the foundation for a global on-demand gig economy.

A study from 2014, commissioned by freelance marketplace Upwork, revealed 3.7 million Australians – or 30 per cent of the workforce – fall in the freelance category and contribute $51bn to the economy every year. The workforce as we know it is evolving rapidly and is changing at an unprecedented rate. Casual contracts and independent consultants are disrupting many industries. 

Making a living outside of a corporate environment, enjoying flexibility to your hours and working from home are attractive propositions that were once only available to a small section of our workforce. Now as industries are being disrupted almost anyone can be a casual contractor and find a career beyond the corporation. A rise in technology platforms that connect people with project-based work opportunities, allows people to abandon the traditional 9 to 5 employment in favor of working independently on a task-by-task basis.

As with any change there are positives and negatives and not all is good when you undertake Freelance work. As any business owner will tell you, the customer is your boss, so if you think you're escaping having to answer to someone or you're under the impression customers are easier to deal with, then you might find you're sorely mistaken. Sometimes being paid per task is not as lucrative as receiving a regular pay cheque, not to mention you don’t get paid super, sick leave or annual leave. You wont have workmates or company benefits either - All things that people in full time employment receive.

With that said there's no denying that the gig economy has its plus side and it looks as though it is here to stay. In a competitive job market, organisations can utilise the gig economy as a way to win the war for talent.  It is predicted that large corporations will rely on digital platforms to ensure their casual workforces are integrated, they will streamline HR processes and provide the framework for project-based employment. 

Small businesses are also seeing the value in hiring freelancers. Often they have jobs they can’t or don’t want to do themselves. And some smaller organisations that typically struggle to recruit top talent in their local area can utlise the gig economy to find new opportunities and discover previously inaccessible talent.

These new levels of freedom in hiring and collaboration, mean that unique compliance and WHS concerns must be addressed.

The Fair Work Ombudsman has useful guidelines on how each working arrangement functions, with some of the most notable rules for independent contractors as follows:

Expectations of work

Usually engaged by the employer on a bespoke basis for specific tasks, an independent contractor often dictates their own hours (after agreement from the employer) and controls their own workflow and methods.

WHS risk

Unlike with a regular employee, the independent contractor is often responsible for any injuries sustained while performing the task. For certain remote workers, such as software developers or freelance writers, self-management of WHS concerns is expected, including any necessary insurance.

Payment and taxation

In most instances, contractors will submit periodic invoices as work is completed, or at the end of the contracted term. Payment of tax and superannuation is handled independently.

Tapping into the benefits of the gig economy undoubtedly requires new strategies from businesses, and as the freelancing and the gig economy continues to grow, traditional structures will need to adjust. The age old saying ”you get what you pay for” is worth remembering when hiring freelancers and as with full-time employees if your freelancer feels valued, engaged and happy they are far more likely to produce better results for your project.

Digital technologies have given Australian employees extraordinary options for where and how they work with many futurists predicting that the workplace of the future won't resemble a traditional workforce at all. I can just see the kids of today entering the workforce in 10 years time and wondering why we all got up at the same time, travelled into work at the same time and went home at the same time whether it suited us or not!