Imagine you were looking forward to working into your 80s. What sort of working life would you want?
My guess is few of us would want a life of relentless 9 to 5 or more likely 8 to 6 with a couple of weeks off for holidays. We know implicitly that this is a regime that would see our intangible assets denuded. How would we keep abreast of rapidly changing skills with such little time to step out and learn? How could we keep our health and vitality at its peak with such little time for rejuvenation? Indeed, how could we find enough time with friends and family?
Perhaps that’s why the gig economy is seen as such a promising development. Imagine selling your resources – house, car, skills, or time in a seamless easy way. Imaging having the ability to step off the corporate ladder and change the way you work at anytime, providing a window of different and more flexible work. The benefits certainly look appealing. But of course, the gig economy also comes with its challenges. Our society is still not quite set up to support people who do not have a steady income stream and permanent contract. Try, for example, applying for a mortgage without proof of future income. Or saving for a pension with an irregular cash flow and no employer contribution. These drawbacks mean that few people see the gig economy as their main work activity or as a long term choice – but view it instead as part of a wider portfolio.
For those who plan to build this kind of portfolio in future, and benefit from the real value of the gig economy, they will need to take four important actions:
– work on transitional competencies. Moving from one type of work to another is not straightforward as it often means redesigning broader lifestyle choices and habits. These transitional competencies are developed through building a broad and diverse network – somewhere within that network will be people who have made the transition. Being surrounded by people who are similar to you will simply hold you back from changing. If you want to be part of the gig economy find others who are already there.
– build synergies between types of work. One of the joys of a portfolio life is variety – but this variety can come at a cost. When work activities are very different from each other then there is a ‘switching cost’ and cognitive abilities and working style have to switch between tasks. The more similar the task the less the switching cost. So try to build different job tasks from a platform of similar skills and competencies
– don’t build up tangible asset dependency. Working in the gig economy can bring variety, space and autonomy – but oftentimes people shy away from doing this type of work because they and their family have become addicted to a certain flow of money – holidays, cars, and general consumption. If you want to bring flexibility into your working life you have to ensure that you don’t develop spending habits at the top of your earning cycle. You must also be clear about what is essential for maintaining the standard of living you and your family need, and ensure that you are developing skills in lucrative fields that will deliver the commensurate income.
– realise you can’t have it all. There is much talk today that people (specifically mothers) can’t have it all – a family, big job, happy partner. Perhaps the same is true for putting together a portfolio of work. Most highly paid jobs come with 24/7 availability and pressured work. Gig economy jobs tend to have more autonomy and freedom. That’s why they tend not to be paid so well.
The gig economy has real promise to bring options to a working life. The question now is, are you ready?