By Novo Constare, CEO and Co-Founder, Indeed Flex.
In the modern world of digital staffing, the terms temp worker and gig worker seem, at times, to be interchangeable. This is especially true as both types of workers predominantly focus their job-seeking efforts on mobile platforms, giving them greater control over their work schedule.
And yet, there’s a marked difference between these two types of work, and what they mean to individual workers, hence the two terms needing to exist. I think it’s important to make this distinction. It’s been projected that 86.5 million people will be working a gig or temporary job in the U.S. alone by 2027, so we need to understand this market better.
At my company, we offer assignments to workers as short as two hours or as long as several months, consisting of multiple shifts. We even offer temp-to-perm positions in many instances. These assignments are offered by us as an employer, whereas gig workers are largely self-employed contractors or freelancers.
Based on these experiences and others as the head of a temporary staffing solutions provider, here are some of my insights on the distinction between gig work and temp work.
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Gig Work Versus Temp Work
Gig work is usually measured in units—such as one delivery, one ride or the assembly of some flat-pack furniture. Temp work, by comparison, is more about the composition of shifts: From 10 a.m. to 2 p.m. or from 3 p.m. to 11 p.m., for example.
Taxes And Benefits
With gig work, individuals have to file their own taxes and sort out their own pensions; the amount of work available can be somewhat inconsistent, although platforms like Uber do offer greater consistency. It’s worth mentioning that gig work offers a lot more flexibility, too. With temp work, individuals work for an employer, who sees that they pay the correct tax, sets up a pension scheme for them and offers other benefits besides this.
Another fundamental difference between temp workers and gig workers is the benefits they often receive. In short, gig workers don’t have the same statutory rights, as they’re effectively self-employed. This means that things like a pension, private medical insurance, and even paid time off aren’t always guaranteed. Temp workers, on the other hand, do have statutory employment rights, and, more often than not, access to additional benefits.
Employee Rights And Legal Considerations
When it comes to employee rights there are some stark differences too. While most gig workers usually get some form of minimum wage, it’s not universally guaranteed, and there are ongoing legal disputes around this. In addition to this, they’re not guaranteed pay for sick leave or holiday, although, in a landmark court case, Uber drivers successfully argued that they were employees of the company and were entitled to such rights.
Temp workers, on the other hand, are guaranteed a minimum wage and accrue a certain amount of paid time off, based on the length of their assignment.
Advantages And Flexibility Of Gig Work
But ultimately, despite certain drawbacks, gig work does come with a number of benefits. You can work on many different projects with many different clients/companies in a short space of time, learning new skills much more quickly than you would in a traditional job.
This also means you can build up a bank of word-of-mouth recommendations very quickly to help land new gigs. And then there’s the "be your own boss" mentality since you have control over the work you choose to take on and can set your pay rates.
In fact, potentially, your earnings are uncapped. In line with being your own boss, gig work can often be done online, at home or at any location of your choosing with no need to be on-site with an employer. This allows for a certain degree of freedom and also avoids the transport costs that come with some jobs.
Yet, gig work comes with risks, and a lack of certain rights and benefits. But I find this is often evened out by the freedom, control and higher earning potential. The appetite for gig work is certainly growing with gig workers making up an estimated 12% of the global workforce, according to the World Bank. And it’s becoming increasingly popular with younger generations, with 52% of Gen Z workers and 44% of millennial workers in the U.S. taking on freelance work in 2023.
The Structure And Stability Of Temp Work
Temp work, by comparison, is more structured, often offers additional benefits from the employer, certain employees rights, by law and consistency. But doesn’t offer quite the same level of freedom as gig work, and, of course, earnings are set by the employer, not the individual.
It does, however, cover an incredibly broad range of industries. For example, at my company alone, we cover the retail, hospitality, light industrial, facilities management and healthcare sectors. In the wider temp jobs market, work is available in admin and office roles, construction, IT, sales and marketing, education, creative sectors, accounting and finance, legal services, HR and even government departments.
The Future Of Flexible Work
The required skill sets vary greatly depending on the role. But, as time goes on, and the lines blur between the rights of gig workers and temp workers, and legislation evolves for both of them, don’t be surprised if the two marketplaces begin to blend into one another, and we end up with just one overall concept: Flexible work.
Either way, whether you are utilizing gig workers or temp workers, it's important that you put people first. In doing this, you can create workers who—with that safety net of certain rights, hours, pay and benefits—are also committed, reliable, diligent and hard-working.
As an employer, the burden of the cost of providing pensions, healthcare, holiday pay and other benefits doesn’t have to fall on you; you simply have to provide the work. Both gig work and temp work are seen as the preferred option by many, otherwise, the two things wouldn’t exist. It pays to know the difference between the two, how it affects individual workers and how it affects you as an employer.
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