How The Gig Economy Is Impacting Employers

September 27, 2022
5 min read

The following article was written by Lauren Winans, CEO and Principal Consultant of Next Level Benefits. It was originally written for and released by Young Upstarts.

There was a time when the promise of a corner office was one of the chief motivations in the workplace. That time has passed. The new dream job is officeless. It involves a laptop and the freedom and flexibility to work from anywhere. And the gig economy has allowed many to seize that dream.

When people began leaving the workforce en masse in the wake of the COVID pandemic — a phenomenon that became known as the Great Resignation — the assumption was they were looking for a better organization for which they could work. Over two years later, it would appear that assumption was wrong.

According to recent surveys done by Fiverr and the International Labor Organization, people are not simply leaving one company to join another, but leaving the traditional workforce altogether. The Fiverr survey found that 54% of people who left their companies ended up working as freelancers or starting their own businesses.

The move to the gig economy has been discussed for years, even prior to the pandemic. However, the pandemic forced many employees out of the office and into nontraditional work schedules. It was like a test drive of the gig economy, and many have decided it worked for them better than what they were experiencing.

The millions of people who are leaving their jobs want to redefine the way that they work. A 9-to-5 job is no longer the dream, especially for the younger generation. More individuals are looking for work that offers flexibility. They no longer want to be stuck at an office desk for eight hours a day or longer. Traditional employment has lost its luster.


For businesses that are struggling to attract and retain talent for the long term, the ramifications of the shift to gig work cannot be ignored. Many of the employees who are leaving the traditional workforce have decided that it is too constraining or does not adequately reward them for their skills.

The gig economy offers workers a stream of new work opportunities. Those who choose to work on several gigs simultaneously now have multiple sources of income. In addition, gig workers can invest more time acquiring new skills than traditional workers because they can take low-intensity jobs while learning additional skills. Employers who are not willing to introduce similar benefits to their offerings will find it challenging to draw gig workers back to more traditional positions.

Employers who have begun to measure the impact of gig work are often finding that gig or contract workers actually make it easier for work to get done in their organizations. Contract employees end up happier because their time is spent working exclusively on the tasks for which they were hired. In addition, the gig economy allows companies to obtain workers who specialize in niche skills — such as IT, marketing, and HR — without the high costs of hiring those workers for a full time position. It takes a shift in mindset, but employers who integrate employees and gig workers alike within their workforce can reap the benefits of both.


Engaging with gig workers can be especially rewarding for startups with lean budgets. Gig workers can provide expertise without costing the organization regular pay, benefits, taxes, and additional employment costs. The gig economy allows startups to get the knowledge and help they need without carrying excessive overhead costs of employment.

To take advantage of this, startups need to think through their sourcing and application process, ensuring it is optimized for gig workers. The process should be easy and succinct, marketing the desire to work with gig workers. Organizations that partner with firms that are facilitating the gig economy’s growth will attract talent and make it known that contract opportunities exist within the employer’s workforce.


Maintaining a healthy workplace culture is a top concern for every business. When workforce dynamics change, there is always a risk that it may impact culture. When it comes to incorporating gig workers in the mix, however, organizations are finding that the impact is not negative.

It takes some internal effort, but creating onboarding processes for employees and gig workers can ensure a smooth transition. The goal is that these different populations are folded into the culture seamlessly, have the ability to work together without roadblocks, and make it easier for a company to tackle even more work than with a traditional workforce model.

Previous Post
Next Post
Nothing to see here. Head back to our Blog.
Nothing to see here. Head back to our Blog.

What is Purpose-Driven Work?

What Benefits Do Millennials and Gen Z Care About?

How to Get That HR Project Off the Ground

Exploring the Latest Trends in Workplace Mental Health and Wellbeing

Next Level Knowledge: Top HR Projects 2023

Leadership Trends in 2024: A Glimpse into the Future of Effective Leadership

Making Every Day Giving Tuesday

What Does an Independent HR Consultant Do?

Next Level Knowledge: Top HR Trends for 2024

The Power of Pay Equity: Fostering Fairness and Success in the Workplace

Next Level Knowledge: Human Resource Professionals Day

Creating a Sustainable HR Strategy for 2024

Suicide and HR Risks: Navigating the Complex Landscape

Prioritizing Women's Health in the Workplace

Next Level Knowledge: AI in the Workplace

Understanding Digital Nomad Employees

The Importance of Conducting a Skills Gap Analysis

Next Level Knowledge: Supporting Caregivers in the Workplace

Employers Who Support Employee Self-Care Are Winning

Maximizing Your 2024 HR Budget: Unlocking Value and Strategic Success

Shorter Workweeks: The Benefits for Your Business

Work-Life Integration: Achieving Balance and Thriving Together

Juneteenth as a Recognized Holiday: Companies Leading the Way

Next Level Knowledge: Paid Time Off

How Does DEIB Show Up in the Workplace?

Next Level Knowledge: Mental Health Awareness

A New Framework for Mental Health & Well-Being in the Workplace

Next Level Knowledge: Project Roundup

How Employers Can Support Volunteerism at Work

What's the One Thing Employees Want?

Next Level Knowledge: Pets in the Workplace

Next Level Knowledge: Entrepreneurship

Next Level Knowledge: Paid Holidays

Top HR Trends for 2023

How Employers can Show Generosity on Giving Tuesday (and Beyond!)

HR Consultants Play Many Roles and Make a Big Impact

What Happens to the Job Market During a Recession?

How Inflation Affects the Labor Market

How The Gig Economy Is Impacting Employers

Strong, Transparent Communication is the Only Rational Anecdote to Fear

Exploring Current HR Trends

Making Sense Of The Covid-19 Vaccine Mandates

Next Level Benefits Featured on the Winning Teams Podcast with Jordan Smith

Mind The Innovation Podcast: Transparency in Leadership

Next Level Benefits Featured on The Business of Business Podcast

Lauren Winans joins the Future of Field Service Podcast to Discuss Creating a Compelling Employee Value Proposition

The Confident Retirement Podcast Welcomes Lauren Winans and Next Level Benefits

Insurance Town Welcomes.....Lauren Winans of Next Level Benefits

Lauren Winans and Next Level Benefits Aim to Create More "Best Places to Work"

How the Pandemic Has Expanded the Role of HR

10 Ways to Incorporate Diversity, Equity, Inclusion, and Belonging into Employee Compensation and Benefits

How Employers Can Support Employees with Reproductive Care Services

How to Encourage Employee Productivity

10 Ways to Enhance DEIB in Compensation and Benefits

Boosting Motivation, Productivity, and Employee Morale in the Workplace

Our Partnerships with HR Experts

Digital Health and Wellness Startups: What Does It Really Mean to Sell to the Employer Market?

Get Our Newsletter

If you enjoyed reading this blog post, sign up for our newsletter to receive more valuable insights directly to your inbox. Enter your email address in the field below!

By clicking the Sign Up button you're accepting our Terms of Service.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
“Our dedicated HR expert is one of the best that I have had the pleasure of working with. Her professionalism and depth of experience are exceptional.”

Professional Title

Company Name or Author

Discover the Benefits of HR Consulting

Turn our expert HR advice into action. Set up a quick 15-minute call today.