Can Full-Time Tech Workers Survive the Gig Economy? (dice.com)
Nerval's Lobster writes: By some measures, more than 40 percent of U.S. workers will be independent in 2020. Today, that number stands at 34 percent, according to the Freelancer's Union. By all accounts, the trend seems widespread enough to indicate that tech pros should prepare themselves for the dynamics of a world that depends more on contingent work. The question isn't whether the tech world will see an increasing prevalence of 'gigs,' rather than full-time positions; it's whether those in full-time positions can easily keep their jobs when there's pressure to farm it out cheaply and easily to freelancers. Or will the need for people who can see projects through the long term prevent the 'gig economy' from radically changing the tech industry?
Permanent staff are seen as a burden. They will look for any way to reduce that, so long as their (or their bosses) jobs are not the ones affected.
"Transparent" is a shit show that trades on every stereotype going. A man in drag is NOT a transsexual.
We all are freelancers to a degree: we bid on recurring contracts for our employment. There will always be a cohort of workers who want nothing to do with managing the ins and outs of "working for oneself".
Btw, does Mr. Betteridge work for Dice? Certainly looks like he won't be out of a job anytime soon!
The days of English and a good US science related degree are been replaced by random private sector staff with skills from Canada, Australia, New Zealand, the UK, Ireland.... parts of the EU... Asia, Africa, South America..
If only something could be used as leverage that other nationals can never out study or accept lower conditions or pay for?
Welcome to the exciting world of the security clearance and join the growing government and mil contractor ranks.
Great pay, a simple private sector interview, some digital paperwork and your on your way to the world of secure no bid contracts.
Domestic spying is now "Benign Information Gathering"
%40 I don't think so...
I guess I've read too many political articles and everything now smells like an ad, a conspiracy or outright propaganda.
"Carolyn Ockels: Carolyn is the Managing Partner at Emergent Research. Carolyn's current research and consulting is focused on economic decentralization"
Focused...
"If any question why we died, Tell them because our fathers lied."
You are all cows. Cows say moo. MOOOO! MOOOO! Moo cows MOOOO! Moo say the cows. YOU UBERIZED COWS!!
Sh-udder to think ...
It must have been something you assimilated. . . .
The Department of Made Up Statistics has been busy this year with a 107% increase in productivity.
Companies are just shells containing people.
Without people they are just empty shells.
Greed will destroy society, sooner than we think.
Go well
These bozos wouldn't stop to wonder if this was the new normal. This is as sickening as financial analysts marveling at the possibility that the US as a nation of renters rather than homeowners could be the "new normal."
The article seemed to be far fetched. It all made sense when I looked up and saw that it's just another idiotic dice "insights" spam.
Sure they can! Look no further than Nerval's Lobster for inspiration. It's a full-time job posting Dice articles to Slashdot. Who else is going to do it?
Obama's too busy "rebuilding" the US economy along "progressive" lines to notice the lack of jobs.
How many years has he been promising to "pivot to jobs" now?
And why are bad economic reports always "unexpected"?
Yeah, I know - what do you expect about a President who learns about major world events by reading about them in the newspaper? Do you REALLY expect someone like that to do his fucking job when he just about BRAGS about NOT doing it?
On a site that frequently ridicules the short-sighted behavior of eliminating experienced employees to bring in fresh (cheap) college graduates, it seems out of place to have a positive outlook on pervasive outsourcing.
If everyone is a contract worker doing works-for-hire, then nobody has extensive institutional knowledge. You are constantly explaining and re-explaining how your business works, and bugs are repeatedly entering codebases because the developer hasn't spent years understanding the business and its workflows. It doesn't matter how well documented your business is, developers will make mistakes when they are unfamiliar with your processes. When they can't look at a workflow or data structure and go 'that's not right' because they have spent years at the company learning how things work.
Experience has value; not just experience coding, but experience with the company understanding how it works. Systems are rarely generic... they are embedded directly into the business logic unique to each company, and the less you need to learn and relearn the requirements of every system the more productive you can be.
"I will trust Google to 'do no evil' until the founders no longer run it." Hello Alphabet.
It will be like those subprime loans that caused the banking crisis. Work will be contracted out to other companies which will cut costs by cutting corners subcontracting to yet other companies, who in turn will do the same, all the way to the bottom where the work is being done by 'independent freelancers' under contracts that in no way resemble the original requirements. Then, one day, it will all collapse when 'Amit Patel' in India just happens to be ill while a critical bug needs to be patched, the damages are running into the millions per hour, and the lawyers of the 300 companies involved are trying to figure out why it appears that nobody is actually responsible for actually fixing the problem.
Then the government will step in, fix the bug and spent huge sums of money just to keep the companies, which are to big to fail, afloat.
We are all temporary employees for the most part. I was told I was likely to have 6-7 jobs in my career, and less than halfway through I am on employer #7.
The gigs might be getting shorter, but we have lived in a hire/fire economy for a couple decades now. Hire when you need folks, and cut them loose when you don't. Nothing new here. There are a lot of headaches with contractors that having employees actually avoid, namely the need to actually plan and think out a chunk of work before throwing warm bodies at it.
You know, the guys who are hoping some home owner will hire then to help with the hard labor in return for cash?
That's what the rest of us will be doing in the gig economy of the future.
I've got my cardboard sign ready.
My Loyalty to the company extends to the point of the next paycheck, no further.
That's the company's treatment of me, and I reflect same.
Lay me off at a whim, I'll tell you the CEO's password for a chocolate bar.
Indeed, monster hotjobs careerbuilder. Snagajob? Ziprecruiter!
I used to "gig around" a lot, and found it difficult to co-raise a family under. If you are single and can hop all over the country and/or globe, that's great! But it's hard on families.
During good times you may be able to stay mostly local, but good times rarely last. The boom/bust "business cycle" of capitalism has been going on long before the USA existed, and has yet to be solved.
If gigs paid very well, then perhaps one could live with more gaps by saving up. But I have not seen a significant lasting pay advantage, especially during recessions.
Maybe a few "elite" workers with speedy eyes and eidetic memories can pull it off and come out ahead of traditional salaries, but by definition, most of us are not elite.
Table-ized A.I.
Is there business value in retaining, training, and developing individuals who will become domain experts with cross-functional expertise and proficiency with working within your business structure?
Well, of course. That's a hypothetical question.
The real question: is that value greater than the cost to retain them vs. the cost of hiring multiple underpaid, low quality workers, perhaps from another country?
This is going to different industry to industry, and company to company. Those selling software as a service may find their short term apparent advantage results in a severe disadvantage over the long term. Those releasing products may see great gains in that same long term view, with a painful short term as their teams are brought up to date.
If any of these trends /are/ true on average, though, then the good companies will survive and the bad ones will go under in a socioeconomic version of natural selection.
In either scenario, there will still be other companies that value long term employees, and those that don't.
Finding, vetting, and hiring freelancers take up so much time and effort, not to mention cultural fit, getting them up to speed with the business and code quality and how it fits with the rest of the code-base, that I couldn't see most of the organizations that I've worked for, doing it to any appreciable amount.
And as far as telecommuting freelancers to get a cost savings, I've seen companies turning more wary of workers telecommuting
Betteridge's law of headlines doesn't look so good now, does it?
This post contains no rudeness or derision of any kind. All arguments are friendly. Terms and exclusions may apply.
...well, the middle class is certainly being milked hard.
Sh-udder to think ...
Look, we've herd that joke before. I don't place much stock in your sense of humor.
Having been on the permanent-staff team dealing with contract workers, I can't see permanent staff ever being replaced by "gig" developers. A lot of things depend on having not just skill in programming but familiarity with the business and prior decisions about the system's design and architecture. You can hire short-term people for specific tasks, but you need people who've been there long-term to work out how to fit new requirements into the system as it exists. Then there's maintenance. Bugs that make it into production tend to be obscure and hard to trace, and someone new who isn't intimately familiar with how things fit together's going to be completely lost trying to troubleshoot a bug that's not in any component but in the interaction between 3 different components (or worse, a bug caused by all 3 components being absolutely correct and bug-free but that particular account's so old it has a combination of settings on it that isn't currently legal and that the documentation doesn't mention).
The permanent staff won't be the cheapest in absolute terms, but they'll be the cheapest in terms of dollars spent for results produced. This isn't a guess, it's a prediction based on the outcome of the vast majority of attempts to replace permanent development teams with contract workers and consulting firms.
I've been working 10 years now as a freelancer. Like anything, it has its good and bad points.
I'm pulling down the same sort of salary as I'd be getting as a permanent employee, once you factor everything in (e.g, I get more in my paycheck but I have to pay my own benefits, but it balances out about the same with everything considered). I get to be my own boss, pick and chose what I want to work on, and when, and for whom. On the other side of the coin, there's always the worry about finding the next gig, and there's a higher ratio of learning overhead, and more travel.
My average contract length has been 2 years, and I've worked for both some very, very major companies, and tiny little ones with only a few employees.
All told, I like it and wouldn't go back even if you paid me twice as much to, but it probably isn't suited to everybody's preferences.
pros should prepare themselves for the dynamics of a world that depends more on contingent work
Nothing new here
finds the acorn now and then (and yes, I know Hogs hunt by smell, it's an expression, roll with it).
They're probably trying to dance around the real issue, which is that there isn't going to be enough work for all us tech workers. With all the outsourcing and H1-Bs and what have you. That plus the "Gig Economy" is a fancy way to say companies don't want to pay for benefits, paid leave and pay raises. It's basically a massive pay cut on a scale that I don't think has ever happened. You don't really want to bring that up because if you think you're having a hard time swallowing these "insights" imagine what accepting the brutal reality of the "Gig Economy" is like...
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Most people cannot survive running their own business, period. That said, skilled professionals who can should come out ahead doing independent contract work over full-time employment. You break even with around 1,000 billable hours in a year typically, if you can control your billing rate effectively. If you can't control your rate (or negotiate well), you end up needing to work about 1,600 billable hours to break even.
Target billing rate should be full-time equivalent salary/2080 hours*3.0, or roughly your current salary divided by 700.
Contracting of non-core functions does make sense for small and mid-sized companies. Large companies really should have in-house expertise though. When they contract the work out it is really just an MBA fantasy.
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The folks driving these changes figured that about 10 years ago. The solution is really, really simple. Labor costs have plummeted. It's cost effective to devote 5+ poorly paid employees to a task that used to be managed by 1. Don't underestimate the "Gig Economy". No benefits and on demand labor. Have any downtime at work? Most techies relying on Institutional Knowledge do.
So what you do it take complex tasks and break them down into simple processes. I'm sure you've seen this. Situations in a company where the right hand doesn't know what the left is doing. You're seeing a few gaps and bugs in the system. They're being worked out. In the meantime companies take those complex processes and break them down into simple, easy to train ones. Your one $40/hr + benefits irreplaceable employee gets turned into 3-5 $10/hr no benefits replaceable ones. If you outsource the parts of a process that don't require customer service/interaction you can do it with a $2/hr no benefit employee. Net savings is usually on the order of $10-$15/hr x 160 hours x 12 per employee. About 20k/yr each. If you're a large enterprise that's all pure profit.
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most people want to believe they are elite. It's a pride thing or something. But it's really hard to get folks to admit they're average, even though it's statistically likely they are. That's what makes the Gig Economy and these lousy contractor jobs so enticing :(. I knew a tonne of contractors who swore by the work but had things much worse than me as an employee at jobs I did. I also noticed they took full time jobs first chance they got...
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I've been closely involved with top-performing sectors of internet (including web hosting, etc) businesses since the around 1995-1996. It started out as mostly freelancers, mom and pop shops, doing business with each other. It's been cosolidating into much larger companies in a very noticeable way. The reason is cost. It costs more to have have 400 seperate companies, each employing one or two people, then to have one company employing 400 people.
Consider but two examples - taxes and insurance. If you have 400 people each having self-employment taxes to deal with, all separately buying individual insurance policies, you have to pay them enough to make it worth payng for and dealing with. The company down the road can save money while offering employees more by getting group insurance and filing -one- business return, not 400.
Sure, if you only need a CISSP certified security expert for 60 hours per year, you contract that out. But for most of your workforce, you want them 40 hours per week, all year. In those cases, the majority, employees end up costing less overall. Of course, the exact number of hours that's the cutoff will depend on the current federal and state government policies. California is a clear example - if following state and local laws and regulations cost $20,000 per employee per year, that'll make contracting out more attractive than if employer costs are $5,000 per employee per year.
When products can be spun up, sold off and trashed in the space of a few years this might become viable. For now there are plenty of projects which require long-term staffing because of the sheer body of knowledge required to hold them together.
REALITY 1
This is counteracted by the "disrupt" movement that believes software is cheap and that we should be able to rewrite an operating system in a couple of nights with enough beer. Once we're capable of rewriting an OS and enough of a software portfolio for a platform to become viable [in a short space of time] then we've got our gig economy. It'll be a hellhole of turn up, burn out, fuck off economics - software with no documentation that's hacked together with no testing and no accumulated wisdom. At this point all the money injected into utilizing computers for the benefit to business will start to flow in reverse and we'll suck that value back out in the form of frustration and customer-funded testing. Computers will eventually become no net use to anyone because the software will be so abysmal.
REALITY 2
The glut of programmers rolling off the CS mill will far exceed demand and the majority will go into open source in the hope of making up enough bullet points to get an interview. In the meantime the software industry will happily take the fruits of the free OSS platforms development and essentially get their code and support for free. This has the effect of handing the software maintenance bill to the disenfranchised parents of the basement dwelling 30 year old programmer with an $80,000 CS program yet to pay for.
If you're a programmer then start training into something more grounded, like plumbing, electrical or building. You can't farm that work out to other nations without bringing them in from overseas. This will work as long as regulation requires them to be well trained and licensed. Once that card plays out though we'll all be living in shanty towns with live cables and broken pipes flailing around all over the place. That won't matter though because you'll be skilled enough to do the work yourself.
Then maybe we can dismantle society and all move back into caves.
If you hire a contractor for a long enough term, you can have pretty good amounts of institutional knowledge - You find a few contractors over time that really know the subject well and are effective workers, then do what you need to to keep them around at least a few years.
These days you have just as much risk of key personnel leaving if they are any good. In some ways a contractor is less risky as they will be more prone to be clear if they need more money to stay on longer, whereas an employee might find it easier to get a raise by finding a different company (I know that was true back when I worked for large companies, getting a raise was far harder and offered less reward than moving to a different company)
"There is more worth loving than we have strength to love." - Brian Jay Stanley
Ask the clothing piece workers how the "gig economy" goes. It's nothing new it's just a different sector of work bound for Bangladesh or whoever is bidding the least.
In my opinion, he videogame industry suffers from insufficient gigging. Instead of using temporary labor, they invariably hire for a bunch of "permanent" positions that they can't afford to keep filled, in the long term. Then, you see the all-too-typical giant wave of layoffs at the end of the project.
A fake full-time position can be far more harmful than a temp position. At least with a temp position, you can make appropriate plans. With a fake full-time position, they hide the axe right up until it's time for the execution.
I suspect that's an industry with exactly the right amount of gigging. It's a buyer's market for employees loaded with excess optimism! Sure, not every employee is naive enough to believe in the future of their fake full-time position, but I think we have to accept that many are, and most people in a management role aren't altruistic enough to tell others hard truths when it is just going to lead them to hire (potentially worse) people sooner.
I find the notion that there's "pressure to farm it out cheaply and easily to freelancers" to be ludicrous.
I'm a software developer contractor in the UK. This is a relatively new thing for me - in my 20+ year career I've only been a contractor the past two. The last couple of years have been by far the most lucrative of my career. In every gig I've had I've been paid more than twice as much as the most senior permanent developer.
Trust some entity to be my only source of income? No thanks. I'd rather have 2-3 income streams... they're not likely to shut down all at the same time.
If you like your employee status you expose yourself to the whims of MBAs. Not a good idea.
I'm your Type-A 80ies computer kid turned web-dev in 2000. The line between stable long-term occupation and freelancer has been blurry ever since. This comes with the profession and the times we live in.
I've been in active in the industry for 15 years and now call myself a "Consultant & Software Architect" for FOSS and non-trivial web-applications (flashy name required for being taken seriously as a senior). The software we use at my current employer is matured FOSS, most of the coding is done already. 15-20% of the work consists of slapping together various pieces and building a whole project, adjusting preconfectioned webdesigns with some CSS and jQuery hacks on the side, maintaining the deployment pipeline, doing a little helpdesk, patching IT, etc. The other 80% are office, partner and customer politics, writing important sounding requirements-analysis and covering the companies ass on the technical side when we prepare to take on a deal.
If I would insist on only doing coding, I'd be one of the freelancers we hire to do the work for a few weeks, two or three times a year. One guy is a freelance web-guy, the other is a student who's good at Bootstrap and WordPress and is more into politics and probably has other long term plans than staying in webdev.
Since I'm important for deals and revenue I've got a part-time fixed position. Which is just the right fit for me and the company.
If everything goes right, our jobs, like most others will mostly be done by robots/software when we retire. Software is eating the World.
It's called progress and you should prepare for it.
We suffer more in our imagination than in reality. - Seneca
Ahh, yes: Save money by hiring disposable workers, then spend 6 months teaching them how to be employees. Worse, once the contract ends, those workers get a job across the street, using their new skills to improve the competitor's profits.
Labour can be disposable, knowledge can't. A business needs to keep professional knowledge at hand, and it needs to keep a record of its past, which can't be done when workers disappear every year.
Well, it depends on the work I suppose. If you can land a long-term gig as an independent contractor then yes, you can ratchet your rate expectations down a bit. But if the jobs you are taking are piecemeal? Then needing to bill at around triple what you'd earn as a regular full-time employee is about right. Somebody working in fits and starts has to cover:
- Benefits
- Downtime
- Payroll taxes
- Liability Insurance
- Overhead (i.e. travel, legal bills, things an employer might reimburse you for, like your cell phone)
- Non-billable labor (time spent doing all those mundane tasks you would foist off to corporate functions (i.e. billing, accounting, marketing, etc.)
What? You can't get anybody to pay it? Well you are almost certainly earning less than an employee doing the same job would be.
I worked for a company that tried outsourcing coding to Russia for a bit. They found that they could hire 3 PhD's for the price of 2 American new grads. Unfortunately, they also found that they needed a manager to handle those 3 Russian PhD's where a manager could handle 7 American new grads and a few other more seasoned developers. They also found that the outsourced people produced worse results for code maintenance than the local people (probably because they lacked interaction with the institutional knowledge). The outsourced workers did, however, produce better source code for completely new projects that did not rely on existing code base.
one civilization looks absurd through the peeping holes of another civilization.
Working gigs is self employment. You are the business. That means as well as doing the actual gig work, you also have to research, market, sell, insure, account, and everything else involved in a business. All of it, by yourself and at your own expense.
There are indeed a few opportunities for short term gains. But long term, VERY FEW will be successful and most will burn out while depleting their finances at the same time. It's especially bad in programming/development as you will be competing against the entire world and there's no shortage of Indian, Ukrainian, Pakistani programmers working for peanuts.
> Just look at Circuit City, where the MBA fired all the high paid employees (who were making that much because they were highly knowledgeable and good at making sales)
I can't look at. Circuit City, they're gone. Moves like this which increase costs while reducing revenue and causing bankruptcy are self-limiting for private companies. And to be honest, "bankrupted Circuit City" as actually a -bad- mark on one's resume. The former Circuit City CEO is currently unemployed/ self-employed, looking for gigs himself.
Millions of workers are always being displaced by technology. It is foolish to assume that, in the near future, computers and machines will replace people at the top of the tech industries. Surely computers will be able to create superior software, vastly reducing the need for programmers as well as many others in the industry.
And either level off, or drop.
When I was last looking, in '09, I hadn't seen so many temp-to-perm and direct hires in 15-20 years. And the reason: the fallout from the Microsoft lawsuit.
Companies went to 3 years, then at least a six month "furlough" before they could be brought back on. Then two years. I think I even heard a report of 18 mos. For jobs that need to keep going, the hiring managers clearly had started pushing back. Even an experienced person, who might start being productive in a couple-three weeks, wouldn't really *know* the systems for at least six months or more. And if management wanted to hire low-priced, inexperienced people, we're talking six months and more to actual productivity. To have them walk out after a year, year and a half, and you've got a major tech headache.
For short jobs, yeah. For stuff that is critical to your organization, and has to be kept running, and maintained and enhanced, you need long-term people.
And the rest of you... I'm sure you get real adrenaline rushes, getting hired for a high rate... and then paying your quarterly taxes yourself, and finding healthcare and insurance for yourself (which will be a *lot* higher than what employees get), and that time "between positions"....
Now, if we had *UNIONS*, and you could go to a hiring hall, and get called in order, and not depend on some moron's assessment that you're "not fresh" (direct quote from an idiot I was talking to about 10 years ago).... But noooo, you're sure you, as an individual, as *so* special and *so* unique that they'll bend the rules for you....
mark
Come to my job and you'll see some real clever techs. Messy wiring and not one computer in the facility can function properly for more than 4 hours I'm which a tech has to come by to login for us because we aren't trusted with passwords. Then we get a new POS program that made pulling up engineering prints take ten times as long to pull up because they locked us out of the old way. Now we switched te finger scanning biometrics but there's no soap to clean the engine grease off the fingers to get it to work.
It was the CEO BEFORE the last one that burnt the company for the insurance, that is how this works. Its the same with AMD, the current CEO is trying to stop the bleeding, even going so far as to hire back the designer of the Athlon64 from Apple, but it was the one after the founder (Rory Read I think, but they went through 3 real quickly) that fired everybody and cashed out.
You see its like playing hot potato, you don't want to be the one left with the bag.
ACs don't waste your time replying, your posts are never seen by me.
Look it up. The CEO who fired all of the high-paying sales people - see what job he has now. He's got a web site where he's looking for gigs because he can't get a steady job.
This stream of articles seems bent on instilling the new name "gig economy" into our brains. Nerval's Lobster is so full of himself that he now wants the fame of creating a new mainstream word. Stay tuned for more articles discussing "whatever in the gig economy".