Where does the Gig Economy differ from the Talent Economy ?

Freelancing is the new trendy way of working. Freelancers in France have increased by more than 120%. Reasons for this growth are numerous. On the one side, people want to gain more freedom and flexibility in their professional activity. But on the other side, companies are looking to reduce their costs and they find it advantageous to outsource certain functions to freelancers.

The freelancing market is divided into two distinct economies, which are often confused with each other: the Gig Economy and the Talent Economy.

Gig Economy

Gig Economy is literally translated as the economy of odd jobs. Contracts in this economy are of very short-term duration. Freelancers are paid by performance and they are always looking for their next assignment. They have no guarantee of making the same amount of money, or even having work, for the next month. Companies that employ these workers have no difficulty recruiting and replacing them, because there are too numeruous. As the supply far exceeds the demand, the remuneration for the services rendered drops.

Nevertheless, the Gig Economy has certain advantages. It is ideal for people looking for an extra income or a better work-life balance. It also allows an easy access to the job market, without any prior knowledge.

Talent Economy

Talent Economy Freelancers are highly qualified and have realized their full potential in the market. They consciously choose the status of freelancer. Companies rely on these professionals when they do not have the required skills internally and do not want to hire a permanent employee. Compensation can differ greatly within the Talent Economy because there are large differences in skill sets. Workers in the Talent Economy therefore have a great deal of bargaining power. They have full control over their work: they can choose when and where to work.

In contrast to Gig Economy workers, they are able to secure long-term, well-paid projects that can even extend over several years. It is their skills that are put forward. Clients buy not only their time, but also their skills.

Why it is important to differentiate between Gig Economy and Talent Economy?

Confusing Gig Economy and Talent Economy has negative impacts on employees on both sides. In fact, not being able to distinguish between them impedes them from advancing in their business and getting better assignments. Gig Economy freelance status has a very bad reputation nowadays, because of the risk-taking it involves: ever-changing competition, limited supply and the low pay. The qualified freelancers of the Talent Economy also suffer from this bad image. Yet, they enjoy a very secure situation and high salaries. This mix-up between the two universes makes companies treat all freelancers incorrectly, even the talented ones. However, they should consider them as the experts they are and not as a workforce they can easily replace. Differentiating these economies also allows Gig freelancers to move into the Talent Economy. As they do so, they will benefit from a vision of their future and not only their next assignment.
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