12 Ways The Gig Economy May Evolve In 2020 And How It Will Impact The Business World – Forbes

The gig economy plays a major part for many international business operations. Companies have realized the benefits of hiring freelancers or project-based contractors to perform tasks for their businesses as it comes with more flexibility, lower liability and fewer costs than hiring full-time employees.

As the gig economy continues to grow, due to greater demand and technological advancements, its impact on the world of business is also increasing, with unprecedented opportunities for freelance workers and companies alike. Below, 12 members of Forbes Coaches Council delve into the ways that the gig economy may change in the coming year, and how it may impact the world of business moving forward.

Forbes Coaches Council members weigh in on how the gig economy will evolve in the new decade.

1. A Shifting Landscape Of Employee Loyalty

"To thine own self be true" has never been more true than in today's world of work. In fact, in the resume writing industry we held our first-ever career portfolio resume competition due to the enormity of the side-hustle, gig-focus taking place inclusive of executives. Companies will need to be able to entice candidates with flexibility and part-time benefits to have a chance at retention. - Laura DeCarlo, Career Directors International

2. Expansion As A Result Of Growing Demand

Aside from just the Ubers and Lyfts, companies seek more flexibility in managing their fixed labor costs, so they're often turning to contingent workforces as a way to manage the varying labor demands. This will not only increase their demand for temporary or "gig" workers, but also for service suppliers that are willing to provide functional support for roles previously handled by internal staff. - Scott Singer, Insider Career Strategies

3. A Conveyor Belt Of Options To Choose From

The gig economy will evolve to become a conveyor belt of options so employers and businesses are able to develop customized ways to better cater to customer needs. Small businesses will start using gig services to generate efficiencies and, gradually, this will create opportunities for larger organizations to learn from the way small businesses use gig services. - Faisal Khan, 1ExtraordinaryLife, LLC

4. The New Workforce Optimization Strategy

The gig economy will continue to broaden its definition from sporadic, opt-in labor to also include more specialized high-end expertise and consulting. Companies will more deeply focus on how to best optimize a mix of both permanent and on-demand talent to achieve their profit goals. Some firms have created leadership positions focused on this very thing. - Karan Rhodes, Shockingly Different Leadership

5. Pending Legislation's Potential Negative Impact

The gig economy is thriving and is now a vital element of business agility and innovation. Although it has some downsides, a majority of the impact of the gig economy is beneficial. New legislation (CA Assembly Bill 5 - AB5) aims to address some of the downsides, but could inadvertently shut down the gig economy in the biggest state economy in the U.S. This is a critical element to watch in 2020. - Jim Vaselopulos, Rafti Advisors, LLC

6. Business Necessity Clashing With Legal Compliance

The gig economy will continue to expand. In order to attract talent, organizations will have to hire people for "gigs." There is just one problem. The IRS rules regarding whether jobs require an exempt employee, non-exempt employee or contractor are decades old. The need to compete will clash with compliance requirements. Businesses will have to lobby the government to update their regulations. - Brad Federman, PerformancePoint LLC

7. Unprecedented Opportunities For Those In The Gig Economy

As business growth continues, those operating in the gig economy are looking at unprecedented opportunity. Low unemployment means companies are stretched to leverage more deeply their arsenal of service providers. Independent contractors can not only raise their prices, but also enjoy more consistent relationships with their clients that should hold out through future economic downward trends. - Laura Camacho, Mixonian Institute

8. Chaos As A Result Of More Growth And Disruption

In 2020, the gig economy would continue to experience rapid acceleration and evolution, changes that would demand flexibility and adaptability. In this VUCA 2.0 world, businesses have become nimble and selective with what they focus on. More growth will lead to more disruption and uncertainty, so it's incumbent upon businesses to embrace VUCA 2.0 as the new normal and adjust accordingly. - Dr. Flo Falayi, Hybrid Leaders, Inc

9. Higher Demand For Project-Based Contractors

In 2020, you will have more people working as contractors for companies of all sizes. This will affect business as they hire more remote project-based contractors and freelancers to get the work done instead of hiring full-time employees. This trend will become more popular with workers as it provides more opportunity for them to live the lifestyles they desire by providing flexible work schedules. - Katrina Brittingham, VentureReady LLC

10. Increased Flexibility As The New Benefit

The gig economy is gaining momentum as people are placing a higher value on acquiring experiences rather than material things. This can have a ripple effect on other businesses in both talent acquisition and retention. The need to offer flexible scheduling, remote work opportunities and work-life balance will become even more important in 2020 to maintain an engaged and committed workforce. - Shelley Hastings, Synergy Empowerment Coaching, LLC

11. Accelerated Onboarding And Engagement

If you're a business hiring more short-term or freelance workers, how do you get them quickly onboarded and engaged? After you clarify role expectations, take time to ask questions like, "How do you most like to work?" or "What can I do to help you produce your best work?" or "What would have you really engaged in your work here, and what could inadvertently decrease your engagement?" Show you care. - Dr. Joel M. Rothaizer, MCC, Clear Impact Consulting Group

12. The Traditional Worker Role Fading Even Quicker

As Generation Z begins to enter the workspace, the traditional worker as we "know it" will begin to fade even quicker. Gen Zs have grown up seeing their parents work multiple jobs, take on gigs and become entrepreneurs. The gig economy will no longer be a trend, but the norm. The impact on businesses will either make them more agile and innovative or they will find themselves in a world of hurt for workers. - Shelley Smith, Premier Rapport

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12 Ways The Gig Economy May Evolve In 2020 And How It Will Impact The Business World - Forbes