In recent years, the gig economy has become a major force in the UK labour market. From freelance designers and Uber drivers to shift workers and the temporary workforce, the gig economy is reshaping how people work and how businesses operate.

But what exactly is the gig economy, and why should businesses pay attention to it? Let’s explore.

What is the gig economy? 

At its core, the gig economy refers to a labour market focused on short-term, flexible jobs; often called “gigs” instead of permanent, full-time employment. Workers in the gig economy, including shift workers and those in the temporary workforce, take on a variety of tasks or assignments with different companies or clients rather than committing to long-term contracts with a single employer.

Key features of the gig economy include:
  • Short-term work: Individuals, including shift workers, take on temporary projects, assignments, or shifts rather than full-time roles.
  • Flexibility: Shift workers and temporary staff can often choose when and where to work, giving them greater control over their schedules.
  • Technology-driven platforms: Apps and websites like Uber, Deliveroo, and TaskRabbit connect shift workers and temporary staff with job opportunities across the UK.

The UK gig economy also spans various industries and job types.

Common examples of industries and job types include:
  • Rideshare driving (e.g., Uber)
  • Food and grocery delivery (e.g., Deliveroo, Just Eat)
  • Freelance work (e.g., writing, graphic design, consulting)
  • Task-based services (e.g., TaskRabbit)
  • Shift work in sectors like retail, hospitality, and healthcare
  • Temporary roles through agencies or for seasonal work

This diversity means the gig economy can accommodate workers at all skill levels, from entry-level shift workers to highly specialised consultants.

Why is the gig economy growing in the UK? 

Several factors contribute to the expansion of the UK gig economy:

  • Technological advancements: Digital platforms make it easier for shift workers and temporary staff to connect with businesses and customers.
  • Changing work preferences: Many people in the UK, including shift workers, are prioritising flexibility and work-life balance. Gig jobs allow them to manage their own schedules.
  • Economic necessity: Some individuals turn to gig or shift work to supplement their main income or when permanent, full-time jobs aren’t readily available.
Advantages of the gig economy for workers:
  • Flexibility: Shift workers and temporary staff can take on roles that fit around their personal lives or other commitments.
  • Diversified income: Many gig workers have the opportunity to work for multiple clients or employers, creating various income streams.
  • New opportunities: Shift workers can gain experience in different industries or roles without being tied to long-term commitments.
Advantages of the gig economy for businesses:
  • Access to a flexible workforce: UK companies can quickly scale their workforce by hiring shift workers or temporary staff based on demand.
  • Cost savings: Businesses can reduce costs associated with hiring full-time employees, such as benefits and long-term commitments.
  • Specialised skills: Employers can tap into a broad talent pool, including temporary workers, to find the right expertise for specific projects.
Challenges of the gig economy.

Despite its benefits, the gig economy also presents challenges for both workers and businesses.

For workers:
  • Lack of job security: Shift workers and temporary staff often face uncertainty due to the short-term nature of their roles.
  • Limited benefits: Freelancers, shift workers, and temporary staff typically do not receive traditional employment benefits like pensions, sick pay, or paid holidays.
  • Income variability: Earnings in the gig economy can fluctuate, making financial stability a challenge, especially for those relying on gig work as a primary income.
For businesses:
  • Management complexities: Managing a gig-based workforce, including shift workers and temporary staff, can be more complex, particularly when it comes to legal and payroll compliance.
  • Worker engagement: Since gig workers and temporary staff are often not integrated into the core team, it can be harder to maintain engagement and alignment with company goals.
The role of Payroll and HR in the gig economy.

As the gig economy grows in the UK, businesses must effectively manage and support their shift workers and temporary workforce. Tools from mywage can be invaluable for managing multiple short-term workers, ensuring they are paid accurately and on time while staying compliant with UK employment laws and regulations.

Gig workers, including shift workers and temporary staff, also benefit from streamlined payroll systems. They need transparency and accuracy regarding payments and taxes, which is where payroll tools provide crucial support.

The future of work in the UK. 

The gig economy is not just a trend; it’s shaping the future of work in the UK. For both workers and businesses, understanding and adapting to this evolving landscape is essential. Whether you’re a shift worker looking for flexibility or a business leveraging a temporary workforce, the gig economy offers opportunities; provided you are ready to navigate its unique challenges.

At mywage, we’re dedicated to supporting UK businesses and gig workers alike with a payroll and HR solution that makes managing gig work easier; more efficient and more rewarding for everyone involved.