The Impact of Experts Networks on Employment and the Gig Economy. Analyzing the Pros and Cons.

Expect networks are specialized businesses that serve to connect companies, investors, and individuals with professionals possessing specialized knowledge and skills. In the gig economy (decentralized labor market), expert networks have streamlined and alleviated the hiring process, by allowing businesses to identify and contract individuals for short-term projects and assignments that require specialized knowledge. In this way, companies were able to easily scale their workforce up or down as circumstances require.

It is this ability to efficiently match individual talent with business demand in a shorter period and with less resources that has transformed expert networks into a vital component of the gig economy.

Gig economy - a segment of the service economy, that relies on temporary, flexible, part-time positions filled by independent contractors and freelancers rather than full-time permanent employees.

The Impact of Expert Networks on the Gig Economy

Since the late 1990s, expert networks have played a disruptive role on the traditional (long-term) job market by giving businesses access to specialized knowledge and expertise without having to commit to the expense and regulatory burden of full-time employment.

As expert networks grew in popularity, many employers have increasingly turned to hiring short-term contract and/or freelance workers rather than hiring full-time employees, leading to a shift in the balance of power between employers and workers.

In terms of the gig economy, expert networks have shaped this segment of the labor market by serving as a platform for employers to quickly and easily find and hire expert talent for short-term assignments.

By connecting employers with gig workers (freelancers and/or independent contractors), expert networks give businesses the option of scaling their workforce up or down as needed.

It is this flexibility that serves as the defining feature of the gig economy, allowing experienced professionals to accept job assignments on their own terms while providing employers with a cost-effective and flexible solution to their staffing needs.

The Pros and Cons of Expert Networks for Short-term Employment (Gig Work)

Due to the flexible and short-term nature of the “gig economy,” there are a number of pros and cons of relying on expert networks for hiring employees on a temporary basis.

Pros of expert networks for employers:

- Faster and easier access to large talent pool

- Lower costs for contracting gig workers

And for freelancers and independent contractors:

- Greater visibility for employers

- More opportunities for expansion

- Better flexibility

Amongst the biggest advantages for employers who use expert networks is that they allow businesses to quickly and affordably access a large talent pool of individuals with specialized skills and experience, thus greatly reducing the time and costs associated with traditional recruitment.

For freelancers and independent contractors, expert networks can be highly advantageous for landing lucrative “gigs” or assignments as the expert networks provide a platform to showcase their abilities and more easily be discovered by would-be employers. Likewise, expert networks allow gig workers to expand their client base and gain access to a wider range of different employment opportunities.

Additionally, expert networks can give qualified individuals a greater range of autonomy and flexibility than more traditional employment relationships, thus giving them the freedom to work on their own terms and maintain a healthier work-life balance.

Despite these advantages, there are a number of challenges when it comes to using expert networks for short-term employment, including the potential for increased difficulties in coordinating projects and assignments, managing distributed freelancers and/or independent contractors, and difficulties in communication.

Furthermore, businesses that rely too heavily on expert networks to source and hire workers may find themselves in dire straits if the expert network’s talent pool is too small or is focused on different market segments. And many businesses find it a struggle to maintain consistent quality and productivity standards when they rely on an ever-changing roster of short-term gig workers.

However, businesses which rely on EN can mitigate the ‘Cons’ by addressing them in a timely and professional manner.

The Future of Employment and Expert Networks

Now that fully digital employment network platforms have become ubiquitous in the short-term labor market, what does the future hold?

One likely outcome is the continued growth of the use of expert networks, especially as businesses look to streamline their operations by increasingly turning to short-term gig workers to provide needed expertise and skills. However, as the gig economy evolves to playing a central role in the job market, there is likely to be increased scrutiny and regulatory oversight of the employment conditions, rights, benefits, and protections afforded to freelance workers.

Other forecasted evolutions in the use of expert networks include widespread adoption of new technologies and capabilities, such as the use of artificial intelligence and/or the blockchain in order to greatly improve the efficiency of matching would-be employers with prospective freelancers and independent contractors.

Conclusion

Since their creation a little over 20 years ago, expert networks have had a profound impact on the short-term labor market (gig economy) by providing a useful and flexible platform for employers to access specialized talent on an as-needed basis in order to quickly scale their workforce up or down. Expert networks offer many benefits to employers and freelancers alike, but they also come with some challenges, including quality control and management issues. However, the future of expert networks in the gig economy is very bright as their use is expected to enjoy robust growth as the job market continues to evolve.