Gig Economy Opportunities and Trends

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Gig Economy Opportunities and Trends

By Robert CurtisGigX, Inc Advisory Council Member

 

Table of contents

 

What Is the Gig Economy?

Gig economy is often used to describe long-term freelance contracts and independent consulting assignments. It began to gain traction around 2007 during the global recession and has grown rapidly since then. While estimates vary from source to source, a 2023 article in Fortunly aggregated data from multiple survey sources indicating that more than a third of workers have some form of gig work contract.

Peter Miscovich, managing director of strategy and innovation at consulting firm JLL in New York, noted in a Serraview blog post that gig workers are an even larger portion of the workforce and could reach 80% of the workforce by 2030. The nature of work is changing, and corporate workplaces must be ready to support that change.

 

A Rapidly Changing Work Environment

The rapidly growing gig economy is more than just a response to changing economic conditions. We live in an era where companies are rewarded for disrupting old ways of doing business and creating new models to drive success. So let’s dive into the culture of these gig economy trends.

For example, one of the biggest setbacks facing startups and turnaround companies in 2024 is that they can’t afford the leadership that will help them succeed. Paradoxically, hiring great leaders can help emerging companies grow to the point where they can eventually hire great leaders. Confusing, right?

Fortunately, the work environment is changing. In recent years, the idea of ​​working at the same company until retirement has disappeared. Employers can hire talent "part-time and long-term," allowing companies to leverage the experience they seek more cost-effectively while providing employees with flexible work opportunities

Gig Economy Opportunities and Trends

 

The Rise of Fractional Leaders

Although the gig economy is growing rapidly, many leaders are still new to first-hand experience. For decades, companies have contracted junior to senior consultants, but only in recent years have C-suite executives increasingly hired their colleagues or been hired themselves. At these senior levels, they are often referred to as fractional leaders or managers.

Why should managers choose fractional work in 2024? Some late-career executives are interested in leveraging their extensive experience at startups, mid-sized companies, or large companies, but don't want to work full-time or have to leave their chosen place of work.

As a part-time executive, senior executives can have a significant impact on their clients’ businesses while enjoying the flexibility and variety of managing their own work opportunities.

The desire for flexibility should not be underestimated. An Workspace Options publication titled Managing Generational Differences at Work found that the ability to work flexibly is a top priority for Millennials, Gen Xers and Baby Boomers.

For sought-after executives, fractional work can also be highly compensated. Working for young companies often involves a combination of salary and equity.

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Many Are Not Ready to Retire

There’s another real possibility in today’s workplace: You may end up getting fired, rather than deciding when to leave. While it’s easy to get sucked into the security that comes with a full-time, executive-level job, it’s a good idea to have a contingency plan.

Today, many retirees have decades before they can be productive. One in five (21%) U.S. adults expect to continue working beyond the traditional retirement age of 65, according to Northwestern Mutual’s 2024 Planning & Progress Study. Of those who do, nearly half (45%) say it’s out of necessity, and 55% say it’s by choice.

Whether they choose semi-retirement or gig work as a fallback plan, experienced executives enjoy the flexibility and benefits of fractional work.

 

Why Do Companies Hiring Fractional Executives In 2024?

It’s relatively simple. Fractional executives can be a good option for organizations that don’t need or can’t afford to hire a permanent, full-time executive, but can benefit from the knowledge and strategic leadership that an experienced and accomplished executive brings to the company.

Beyond serving as an addition to the C-suite, fractional executives could offer other services to their clients, such as advising the CEO on related issues and opportunities, managing strategic initiatives, conducting strategy workshops, coaching/mentoring staffers, or conducting audits.

And as mentioned earlier, emerging growth companies, as well as startups, often bring in a fractional COO, CFO, CMO or other executive on an “other than full-time basis”, because the company couldn’t afford or couldn’t make use of their skills on a full-time basis. The fractional executive provides strategy and direction - two elements that are critical for companies in the early stages of development.

 

About the Author

Robert Curtis is an executive with 12 startups under his belt. He has had numerous successful exits during his 30 plus years as a senior executive. Robert is on the GigX, Inc. Advisory Council and had his hand in developing the company’s business plan and financial projections. GigX is a startup company and is quickly becoming the number one global Network for independent consultants and is based out of Irvine, CA.

 

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