If you’re an IT professional, you’ve probably been hearing about the “Gig Economy.” So, what is this mysterious new economy that is emerging in today’s market? The truth is, this form of work has been around for a very long time but the name only became trendy after the recession and recovery in the mid-2000s. For information technology job seekers, what should you know about gigging? Here are some things to know.
What is the gig economy?
This is a culture where temporary positions are very common and many employers choose to work with independent contractors or freelancers for short-term assignments and projects. Since the economic recovery, many people who found themselves out of work after the recession that began in 2007 are choosing not to return to traditional jobs. In fact, experts believe that nearly 40 percent of all U.S. workers will be a part of the gig economy by 2020.
What are the benefits?
For people who choose to work gigs rather than full-time, permanent positions, the benefits are astounding. In general, as an independent contractor, you can choose your own schedule. You work for yourself, so you can decide which hours you work and how much work you will accept at a time. Essentially, while ensuring that your clients are satisfied with the work you’re doing, you call all the shots along the way.
What are the downsides?
Freelancers and independent contractors work for themselves. This means you will have to be responsible for your own taxes, including the self-employment tax, at the end of the year. Freelancers also don’t qualify for group benefits from an employer, so healthcare costs are usually much higher than if you’re a full-time employee. You also don’t get paid vacation or sick time. A steady paycheck is also a challenge. If you don’t work, you don’t get paid.
Can you have the best of both worlds?
Working with a staffing agency can allow you to work temporary positions with established clients but still receive a paycheck, with taxes deducted, each pay period. CornerStone Staffing is a leader among information technology recruiters in Dallas. Contact us today!