Are you tired of the grind of the 9 to 5 world? Maybe you’ve dreamed of working independently from home as a consultant, freelancer, or independent contractor. Chances are that you envision the opportunity to maintain a healthy income combined with increased flexibility, autonomy, and control over your own success. The gig economy may hold the answer for you. Don’t miss today’s show to find out more!
Diane Mulcahy is here to discuss the flexible work force, the future of work, and what people should consider if they want to make the leap from full-time employee to well-paid gig worker. Diane is a writer, speaker, consultant, and a current adjunct lecturer at Babson College. She is also a Senior Fellow at the Kauffman Foundation and the author of the book, The Gig Economy. Her class at Babson on the gig economy was named by Forbes as one of the Top Ten Most Innovative Business School Classes in the country. Her work on the gig economy has been featured in numerous publications, including Forbes, The Harvard Business Review, The NY Times, The Wall Street Journal, PBS, and as part of NPR’s future of work series, among others.
Diane’s background as an innovative thinker
After attending Harvard for both undergraduate and graduate school, Diane knew right out of college that the traditional style of work was NOT for her. She wanted ways of working that provided more geographical flexibility and more flexibility in working with a variety of projects, assignments, and people. Diane eventually figured out how to make this work, and she has been working independently--and NOT in an office--for over a decade. In “practicing what she preaches,” she has created an interesting portfolio of creative gigs over the years.
What is “the gig economy”?
Diane begins by explaining that the gig economy is NOT Uber drivers! The gig worker is anyone who is not a full-time employee in a full-time job that might function as a consultant, independent contractor, freelancer, part-time worker, and on-demand worker. Don’t think of the gig economy as a marketplace for disposable labor, because it actually covers a wide range of income levels, education levels, and a huge number of industries and sectors of the business world. Skills diversification is easier within the gig economy because of the online learning opportunities that are available to help people acquire specific skills. Labor platforms exist for these workers in which specific skills and job experiences are targeted.
The pros and cons
You might look at the gig economy and think it’s a glamorous world! Diane says the glamour comes from the control you have over your life and the freedom to decide when and where you work best. Diane loves to be “geographically agnostic,” not having to be in the place where her employer or client is. What independent workers love is being autonomous, flexible, and having control over their work and their schedule. One drawback is that the transition from full-time work is challenging and managing the “small business” aspect of this work can seem intimidating. If gig work is for you, Diane says you have to exercise personal preference in what you like to do, then try to minimize or outsource everything else.
How the gig economy works for procrastinators
Like anyone who works from home in any capacity, being a gig worker can be difficult for those who tend to procrastinate. Not having set demands on your location, schedule, and work can be too much freedom if you’re not careful. Diane says that having clear deadlines works well for motivation, even for interim work. Some have found that working for a specific amount of time and then giving themselves some kind of reward is beneficial. You have to figure out what works best for you in managing your energy and focus. Fortunately, there are many apps that can help you set goals, manage distractions, and even allow a virtual ( or literal) co-working experience.
Job security vs. income security
Diane says that there is no job security anymore in full-time jobs, even for the best workers. You have to face the velocity at which our current economy moves and how rapidly companies can change through takeovers, mergers, acquisitions, and startup failures. It’s simply a myth that you’ll have job security if you’re a good worker. For income security, you have to evaluate the lifestyle you live vs. the lifestyle you want. Consider your priorities, values, and what success really means to you. Step back and look at the fundamental building blocks of your life and see if you need to make changes to have the income level to support your ideal lifestyle. Diane says, “Don’t fall into the trap of the status quo.”
Being a gig worker through the phases of life
The gig economy can be for anyone of any age. Millennials work in the gig economy mostly in side gigs, due to their limited work experience and their passion, curiosity, and need to network for the future. Mid-career people tend to work in the gig economy because of the flexibility, because most of them want to protect family time. Their intent is different from millennials, in that some have the goal to start their own businesses and they want to “test the waters” to see if they can make a living. Retired workers realize the need to stay engaged and earn the extra money they need, so the gig economy is perfect for them. In the gig economy, independent workers still have to save for retirement through a traditional IRA or Solo 401(k). Most people don’t know that they can save faster because the contribution limits are much higher for independent workers.
What to charge for your work
Diane advises that you research and figure out what others in your field are charging. Young people may not realize their value and be tempted to settle for less. Have an advisor like an accountant or financial planner to consider your options for investing and saving. Approach independent work as you would in running your own business. Understand what others are charging and where you fit into the competitive market. Diane says that it’s OK to start out charging a little less, but be conscious of moving up the “client value chain.”
Listing independent work on a resume
Side gigs can be listed under community and volunteer activities. Remember that not all side-gigs are income generating. List independent work under “other work experience” on a resume. Some independent workers form an LLC or business, and then list clients and the types of work they do. The trend on LinkedIn iis to use generic descriptions of work and then more specifics in the profile. Diverse work experiences will always make your resume or LinkedIn profile much more interesting.
Highlights of the Episode:
2:36--What the gig economy IS and IS NOT 5:23--How skills diversification fits into the gig economy 6:57--Labor platforms that target specific skills 7:40--How to acquire skills and gain certifications 8:31--The pros and cons of the gig economy 12:44--Best practices as a gig worker 14:30--How procrastinators handle gig work 17:45--Job security vs. income security 19:33--How much do I need to earn? 24:07--How gig work shifts through the stages of life 27:05--How gig workers can plan for retirement 30:36--Pricing, saving, and investing 33:37--Recognizing gig work on your resume 36:53--The goal of the gig worker 38:28--Fem Five
Resources:
The Gig Economy by Diane Mulcahy
The Number by Lee Eisenberg
Fem Five:
Favorite book for women? The Gig Economy and The Number by Lee Eisenberg
Favorite self-care hack? “Periods of silence and solitude”
Best piece of advice and who gave it to you? “I don’t remember who gave it to me, but, ‘Follow your energy. You’re more likely to be productive, efficient, and high quality if you follow where your interest and vibe is leading you’.”
Female thought leader of CEO you’re into right now? Susan Fowler of Uber and the reporter Sarah Lacy
One piece of advice you’d give your five years younger self? “Take the silence and solitude and time and reflection to figure out what you want---and go after that.”
