Tapping into the UK’s Gig Economy

The ‘gig economy’ is booming in the UK. It offers small business owners like you access to flexible, skilled workers who can help your company grow.

Whether you’re considering hiring a freelance graphic designer, a temporary delivery driver or simply an extra pair of hands for a busy period, understanding how the gig economy works will help you get the most from it. Let’s explore what you need to know.

The Meaning

The gig economy is a UK labour market that revolves around short-term, flexible work. Workers take on tasks or ‘gigs’ instead of taking permanent, full-time roles. Popular platforms like Upwork, Deliveroo, Fiverr and Uber connect businesses and workers for various tasks. This system can allow small businesses to bring in extra help without the long-term commitment of hiring full-time staff.

You can hire workers with specific expertise or specialist skills as and when you need them. The gig economy also means you only pay for the work you need, without the additional costs of full-time employment like pensions or sick pay.

The Benefits

There are three key advantages that tapping into the gig economy could offer your company.

1. Scalability

Whether you're experiencing a seasonal spike or launching a new product line, gig workers allow you to expand your workforce quickly.

2. Talent Pool

Recruitment platforms and digital collaboration tools make hiring talent from across the UK or internationally easy.

3. Turnaround

Gig workers are often ready to jump in at short notice, helping you hit tight deadlines.

The Challenges

While the gig economy has many benefits, there are also some challenges. Most UK gig workers are classified as self-employed, meaning they don’t have employment rights like sick pay or a guaranteed minimum wage. However, recent court cases, like the Uber ruling in 2021, have challenged this. If you use gig workers regularly, stay informed about employment laws to avoid disputes.

Unlike permanent employees, gig workers might not be available for future projects, impacting consistency. Building a lasting relationship with reliable freelancers can go some way to mitigating this.

Using freelancers also means that the quality of work can vary. To ensure you hire the right candidate, check reviews, portfolios of previous work and references from similarly-sized businesses.

The Action Plan

If you’re ready to tap into the gig economy, here’s how to get started:

1. Define What You Need

Be clear about the type of work you need to do and the skills required. Do you need someone to manage your social media for a giveaway? Are you looking for a delivery driver to deliver a popular product?

2. Choose a Platform

Different platforms specialise in various types of work. Upwork and Fiverr are great for finding creatives like copywriters, graphic designers and illustrators. TaskRabbit is ideal for hiring help with physical tasks like setting up showcase events or assembling furniture for new premises.

3. Set a Budget

Decide how much you’re willing to pay for the work you need to do. Many platforms let you filter results by an hourly rate or a fixed fee. Be realistic about costs, as paying too little can result in low-quality work.

4. Communicate

When posting a job or discussing with a freelancer, be clear about deadlines, expectations and payment terms. Solid communication reduces misunderstandings and helps ensure the work meets your standards.

5. Build Relationships

After completing a project, take time to review the worker’s performance. Leave feedback if the platform allows it, and keep a record of reliable freelancers for your future needs.

The Boring Bit

Hiring gig workers responsibly is vital to your reputation and compliance with British laws. Most gig workers are responsible for their taxes, but it’s worth confirming this to avoid complications. If you’re working with freelancers long-term, consider consulting an accountant for expert advice.

Even if your temporary workers aren’t employees, treat them fairly. Provide clear instructions, pay promptly and maintain open communication. Respect is simple.

The UK’s gig economy is evolving, and regulations are beginning to catch up with some previously unchecked practices. Keep an eye on updates to employment law regarding worker status and rights.

The Key Takeaway

The gig economy can be a powerful tool for small business owners, offering flexibility, cost savings and access to a broader talent pool. This system enables your company to hire workers in a way that supports your business goals while remaining fair and compliant. Start small, build relationships and collaborate responsibly!

Subscribe to Business Insurance

Choosing the right insurance company is essential to effective risk management when using freelancers. Compare providers to assess coverage options, consider specialised coverage needs, and review policy terms and exclusions.

Kickstart a Project with Credit

Suppose you’ve highlighted a time-sensitive opportunity to bring a gig worker on board. In that case, a credit card is a good solution for prompt payment, allowing your business to kickstart a project with the required funds. Choosing the right business credit card is essential for effective financial management. Compare options based on rewards, interest rates and fees. Select a card that aligns with your business needs and offers valuable perks.

Let Us Help Your Business

BusinessComparison can help you compare vital business products and services, securing the best deals and saving precious time. Compare with us today to save time and money.