A LOT has been written in recent years about the Gig Economy in the US, and it's not a surprise considering that 36% of the workforce now identifies as a…

According to a new report released by Ceridian, a human capital management software firm, 62% of global executives believe that freelancers, or gig workers, will substantially replace full-time employees within the next five years. The findings also shed some light on how the post-pandemic workplace may be configured, with many executives maintaining hybrid and remote work arrangements. 

By Glenn Laumeister, AllWork CEO

This past year, the Gig Economy has progressed way beyond drivers for Uber or Lyft, and now consists of a more diverse and skilled workforce. With the pandemic, more than ever, the Gig Economy has gone mainstream. This includes companies of all sizes. With the opportunity to take advantage of a flexible workforce, hiring managers are turning to freelancers for hard-to-fill roles or ongoing projects that require specific expertise. But where are they finding this talent?

While freelancer marketplaces like UpWork and Fivver have been increasing their revenue rapidly, with UpWork even reporting a 41% increase in Q1 of 2021, they actually account for only a small percentage of freelancer spend in the US. Together, UpWork and Fivver did $572 million in revenue in 2020. That may sound like a lot until you consider the larger picture. Last year, companies in the US spent an incredible $1.3 trillion on the gig workforce.

By Glenn Laumeister, AllWork CEO

The Gig Economy has shown itself to be extremely valuable to startups who want to grow quickly and build targeted elements of their business in a super flexible way.

 This surge of freelance workers shows no signs of slowing down. In fact, a survey by Braintrust found that 85% of knowledge workers are open to becoming freelancers. They want to work from anywhere, be their own boss, and work on the jobs that interest them the most. 

With this flexible workforce comes a whole new set of compliance and legal concerns. Managing and paying this workforce is much different than how you may be currently managing full-time, salaried employees. As a startup, your focus is on fundraising, growing your revenue, and making an awesome product, but there’s something else you need to worry about too: freelancer classification and compliance. 

Last year, the spread of the coronavirus caused retailers to shutter and in-person shopping to grind to a halt. But these past few months have shown that shoppers are gradually returning to stores, marking a shift from the predominantly online consumer habits that dominated 2020. In fact, visits to physical stores have increased by 28.5% since the start of the year. Customers who’ve spent the past year stuck at home are ready to shop and they’re ready to have in-person experiences.