gig

Independent Contractors are Taking Over!

I started reading "Serving Workers in the Gig Economy" the other day. It's a pretty interesting read. I'll try to explain it without spoiling the book for you. In short it's about the rise of the "Gig Economy" which in short is in reference to the rise of Independent Contractors.

So the first logical question is, WHAT IS AN INDEPENDENT CONTRACTOR. Legal Zoom has a pretty good description here. In short an employee is hired on by the company on contract. You do not receive benefits like health insurance, workers comp, retirement, etc. Many companies hire contract workers for non-essential jobs because they can save 18% in expenses. For example, if you hire a graphic designer as a independent contractor in NYC, you would have to pay $50K, but if you hire that same graphic designer as an employee, you have to pay him almost $60K. 

Now that we have handled the concept of independent contractor, I will discuss why this book is interesting. So the business case for startups in the Gig Economy is huge. Unlike full-time employees, independent contractors have to take care of everything. They have to remember to file taxes correctly, get insurance, get their own insurance, find new training, and etc. This list goes on and on. Most independent contractors have no idea how to do this and there isn't a simple, inexpensive solution to find many of these resources. Where there is a large ever increasing problem, there is a need for solutions from innovative entrepreneurs. Blog VI.