Millennials have heard it all. They are allegedly responsible for killing the diamond industry, print media and power lunches. Even American cheese and mayonnaise manufacturers as well as avocado farmers are blaming the Millennials for poor sales.

In the world of work, Millennials are “killing” permanent employment by choosing gig work. But is it true that the gig economy is gaining popularity only because of Millennials? Or is it merely a coincidental statistic because Millennials happen to make up the majority of the workforce today?

how did the gig economy start?

The concept of gig economy jobs is not new. It was first recorded in the 1800s, when a feudal lord paid people to assemble an army.

It was only in the 2000s that the gig economy manifested into what it is today, driven by the increasing use of technology. Through software such as shared cloud networks, project management tools and social media, companies are able to build teams of experts made up of permanent staff and professional contractors. The integrated human capital strategy has proven to drive innovation, improve efficiencies and generate long-term cost savings.

Digital natives such as Millennials and Generation-Z workers are exposed to various technology growing up. They tend to be more adaptable and better able to thrive in the digital economy. These younger generations of workers are also responsible for developing some of the most exciting new technologies that have the potential to change the way we work and interact with each other.

Presently, there is a very broad definition of who gig workers are. They could be on-demand commercial drivers, actors, account managers and even highly-skilled software developers. In the U.S., one-third of the workers are reportedly working as contractors and a majority of them are Millennials. This percentage is expected to increase to 42% by 2020.

what does the gig economy offer?

The main advantage draw of the gig economy is flexibility. Besides having the freedom to choose what type of projects they want to work on, professional contractors also get to pick the employer they want to work for and even negotiate their preferred contractual period as well. This helps them build a more diverse portfolio and manage their own time to achieve a better work-life balance.

People have also shared that they feel more fulfilled having a career as a gig worker. They get the opportunity to work with highly attractive employers, acquire new skills along the way and connect with other experts. Attributed to their wide professional network, many contractors are often able to secure their next gig even before their current contract ends, busting the myth of the absence of job security in contract work.

Whereas a permanent job offers workers a sense of security. People under permanent employment are entitled to a number of employee benefits such as bonuses, annual leave, parental leave, healthcare insurance and even corporate discounts for some subscription services.

Only permanent employees are considered for job promotions in the organisation as well. As long as they meet their predetermined performance targets, they have the opportunity to hold more prestigious job titles and negotiate for a better remuneration package.

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