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What is a gig worker? Meaning, difference from freelance, merits and demerits

by Yasir Aslam
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“Gig workers” is a work style in which individuals receive orders for work via the Internet, and has rapidly spread in recent years. Many people are considering using it because it can be a means for companies to easily secure human resources.

Therefore, in this article, we will explain in detail the characteristics of the way gig workers work and the advantages and disadvantages of using them.

What does gig worker mean

A “gig” is a term originally used in the music industry to refer to a one-off session that a musician performs at a live house.

Gig worker is a coined word created by combining this “gig” with “worker”. Gig workers don’t have a direct employment contract with a company, and work on a one-off basis as if it were an impromptu session.

Here, let’s deepen your understanding by learning about the background of the spread of gig workers in society and specific job examples.

Background of the spread of gig workers

The following three points can be considered as the background of the spread of gig workers.

  • Lifting of the ban on side jobs
  • anxiety about employment
  • Popularization of the platform

Lifting of the ban on side jobs

There is work style reform behind the spread of gig workers. In March 2017, the Cabinet approved the Action Plan for Work Style Reform, which set the goal of creating an environment that enables flexible working styles, including side jobs . I was.

Furthermore, in January 2018, the Ministry of Health, Labor and Welfare created the “Guidelines for Promoting Side Jobs and Side Jobs”, which were revised in September 2020 and July 2022. The guidelines stipulate that the country will promote side jobs.

Due to these changes in social conditions, more and more people are currently working as gig workers in their spare time.

anxiety about employment

Anxiety about employment due to the spread of the new coronavirus infection that has continued since around 2020 is also a tailwind for the spread of gig workers.

Due to the deterioration of the global working environment, many of those employed have been forced to take leave or pay cuts. As a result, it is thought that the number of people who started gig workers increased because they felt that they were worried about relying on only one income source and that they would not be able to make a living as they are now .

In addition, companies have also reduced the number of employees, and have been forced to postpone new recruitment. Therefore, gig workers who can request the necessary work when necessary are useful as a force.

Popularization of the platform

The spread of platforms that connect gig workers and companies is also one of the reasons why gig workers have spread. There are platforms that handle various jobs such as engineers, creators, customer service/service, and posting.

The spread in the food delivery industry is particularly remarkable, and it is no exaggeration to say that services such as “Uber Eats” and “Demae-can” are already permeating daily life.

Along with this, the number of delivery workers has also increased, and although the exact number has not been announced, it is said that there are currently more than 200,000 people in the industry as a whole.

Main job examples of gig workers

A familiar example of a gig worker is “Uber Eats”. Many of you may have heard of it at least once or have actually used it.

Uber Eats is a food delivery service that has grown rapidly in recent years. When a restaurant receives an order through the app, a pre-registered gig worker undertakes delivery, and the restaurant and the delivery person do not enter into a direct employment contract.

In addition to this, gig workers are now active in various places such as web design, writing, light cargo delivery and housekeeping.

Key Differences Between Gig Workers and Freelancers

Freelance is a form of work that is often confused with gig workers.

Both have been attracting attention in recent years as a way of working that does not belong to a company, but there are also differences in the work that is contracted and the method of receiving orders.

If you are considering using a gig worker, be clear about the difference from freelancing.

often work short-term

Gig workers and freelancers differ in the continuity of their work.

Gig workers undertake very short-term jobs that can be completed in hours or days.

Freelancers, on the other hand , may be commissioned for a variety of spans, from extremely short-term work to highly continuous work on a scale of several months to several years.

I often get jobs through the web

When a gig worker receives an order for a job, they basically use a platform on the web. Communication between companies and workers is done online, and the two never meet face-to-face.

However, in addition to the Internet, freelancers may also receive work directly through personal connections and sales.

Many jobs with low difficulty

The jobs that gig workers undertake tend to be generally less difficult. The work of gig workers, which is basically one-time requests, is often the same job, but the request is different each time. Therefore, in order to save the time and effort of explaining the work as much as possible, tasks that do not require specialized knowledge or high skills are mainly assigned.

In the case of freelancers, the degree of difficulty of the contracted work varies from low to high. In particular, there are cases where specialized knowledge is required when receiving orders for work that the company does not have know-how.

Benefits for companies using gig workers

Gig workers are workers who do their jobs the new way. If used wisely, new benefits will be created for companies that have never existed before.

Here, we will explain the benefits that companies will experience by using gig workers.

Recruitment costs can be reduced

Leveraging gig workers minimizes the cost of hiring.

In general, recruiting activities for full-time employees involve spending a lot of money on recruiting, as well as spending a lot of time on selection, contracts, and training. In order to develop human resources who belong to a company and work continuously, it is necessary to spend a large amount of advertising and personnel expenses for each recruitment.

However, gig workers’ jobs are often one-time jobs with low specialization, so there is no need to spend a lot of time and money on selection and training. Therefore, it is possible to secure human resources while minimizing the burden on the company. One of the advantages is that it does not take time to sign a contract, so you can start work quickly .

Also, by allocating the remaining budget and time to regular recruitment activities, you can secure excellent human resources more efficiently.

Able to reach out to a wide range of people

Gig workers are assigned short-term, low-difficulty jobs. Another advantage is that the range of human resources that can be handled is widened because it is easy to be flexible in terms of work volume and time .

For example, there may be a shortage of human resources who are temporarily unable to work long hours due to childcare or family care, but who have sufficient work experience and skills. Shining a light on these human resources and giving them a place to play an active role will also help discover excellent human resources. It is also an advantage for gig workers to earn income, and a win-win relationship can be built.

You can request individual work

Another advantage of using gig workers is that you can request individual work as much as you need when you need it .

Depending on the industry, there is a big difference between the busy season and the off season. However, it is illegal for an employer to dismiss an employee without permission.

In that respect, I will order the work individually to the gig worker. If you refrain from using it when you are not working, you can also significantly reduce labor costs.

Also, if you meet a highly capable person, you will be able to stably entrust high-quality work by interacting regularly.

Disadvantages for companies using gig workers

Although gig workers have many advantages, there are also some disadvantages due to the style of outsourcing part of the work for a very short period of time.

If you are considering using it, be aware of the disadvantages and try to avoid problems after placing an order.

Lack of knowledge and skills within the company

Gig workers are outsourced. Therefore, knowledge, skills, and know-how related to the requested work cannot be left as internal assets. If similar work occurs, it is necessary to find a new contractor or accumulate know-how in-house from scratch.

In this way, be aware that the advantage of being able to easily request work without spending time or money may lead to disadvantages in the long run.

When selecting a job to order to a gig worker, considering how much know-how of the work will be necessary in the company in the future will help avoid troubles and duplication of effort.

There is a risk of information leakage

Although many of the jobs requested by gig workers are one-time and short-term, the risk of information leakage is not zero.

Not all gig workers are security literate because companies don’t spend much time pre-educating their gig workers. If no countermeasures are taken, in the worst case, confidential or important information that you do not want to be known to the outside may be leaked.

In order to have a pleasant interaction with each other, companies need to take security measures when requesting work from gig workers.

Quality control becomes difficult

One of the disadvantages of requesting work from multiple gig workers in the short term is that the quality may vary.

When a company recruits and hires gig workers, the communication is basically done on the web. As a result, it is easy to leave work without accurately grasping the skill level of each gig worker.

As a result, quality differences between workers may occur, and stable quality may not be achieved.

Points to avoid failure in using gig workers

No matter how unprofessional work is requested, if the gig worker’s work develops into trouble, it can be an unexpected disadvantage for the company.

In order to successfully utilize gig workers, it is necessary to hold down the following two points.

  • Understand the content of work that suits gig workers and the advantages and disadvantages of utilization
  • When requesting work from your company, document the work content and security measures.

There are both advantages and disadvantages to using gig workers. It is a good idea to understand each of them properly and decide in advance which part of your company’s work you will request.

In addition, due to the nature of not being able to spend time on training, it is extremely important to stipulate the work content and security rules at the time of request and share them with the company and gig workers to avoid trouble.

By using the service “Teach me Biz” developed by Studist Co., Ltd., you can easily create, operate and manage an easy-to-understand manual using photos and videos on the cloud. In addition, the created manual can be easily viewed via the Internet, which helps companies and gig workers to share business requirements.

summary

A gig worker is a worker who undertakes individual, one-time work without belonging to a company. As it is possible to efficiently secure the necessary human resources at the necessary time, many companies are currently using it in an increasing number of situations.

Gig workers can be expected to bring great benefits to companies due to their cost advantage and ease of use, but care must be taken as using them unplanned can actually cause trouble.

In particular, gig workers, who have a short period from hiring to starting work, have the disadvantage that it is difficult to follow them sufficiently in terms of education. Avoid troubles and aim for effective utilization by scrutinizing the details of the work to be outsourced in advance and by creating manuals for the work.

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