The Shift from Traditional Jobs to Gig Work: Rethinking Career Development in a Flexible Economy

The Shift from Traditional Jobs to Gig Work: Rethinking Career Development in a Flexible Economy

Norhayati Omar^1*, Rossilah Jamil²

Azman Hashim International Business School, Universiti Teknologi Malaysia, Kuala Lumpur, Malaysia

*Corresponding author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.90400354

Received: 28 March 2025; Accepted: 08 April 2025; Published: 16 May 2025

ABSTRACT

The gig economy has changed traditional employment models, creating a more flexible and dynamic workforce environment that alters how individuals view and manage their careers. This paper examines how career concepts and development have changed in the professional gig economy, highlighting the effects of this transformation on workers, organisations, and society. The study starts by clearly outlining the key characteristics of gig work, including autonomy, flexibility, and temporary job arrangements. It highlights their differences and the stability and long-term perspectives linked to traditional employment. This research outlines gig workers’ challenges through a thorough literature review, highlighting income volatility, absence of benefits, and job insecurity.

Furthermore, it emphasises the importance of strategic career development methods explicitly designed for the distinct needs of gig workers. Building networks and relationships is essential for career growth in this unique environment, as connections frequently open doors to new opportunities and partnerships. The paper also examines how human resource management can support gig workers, indicating that organisations must reconsider their strategies to promote career development in this changing labour market. This paper enhances our understanding of how the gig economy requires new theoretical frameworks and practical strategies for career development. It emphasises the need for future research to explore the long-term viability of gig work and its broader societal implications. This paper seeks to provide a clear overview of the gig economy’s impact on careers and encourage continued discussion in this important field of study.

Keywords: gig economy, career development, flexibility, job security

INTRODUCTION

The gig economy represents a significant shift in the modern labour market, characterised by an increasing prevalence of short-term, flexible employment opportunities made possible through digital platforms [32]. This sector includes a variety of workers, such as freelancers, independent contractors, and temporary employees, providing them with considerable autonomy over their schedules, task selection, and work environments [29]. However, the flexibility inherent in gig work often comes at the cost of traditional job security and benefits, such as health insurance and retirement plans, raising concerns about workers’ welfare and stability ([19], [26]). The rise of technology and the internet has propelled the gig economy into a prominent role in the employment landscape, challenging established notions of work and career development [33]. As digital platforms such as Uber and Upwork have gained traction, they have fundamentally altered how jobs are obtained and performed, introducing a new set of dynamics in employer-employee relationships [2]. For example, gig platforms often categorise workers as independent contractors, shifting traditional expectations surrounding job security and benefits [18].

As work structures evolve, it is important to explore how this new economic model affects career paths and ideas [29]. Traditional pathways focused on stability and long-term employment are increasingly replaced by boundaryless and protean careers marked by adaptability and self-directed career management [6]. In this situation, individuals need to adjust their expectations and approaches to effectively manage the challenges of gig work, which may involve unpredictable income and limited job-related support [14]. Additionally, grasping these challenges is essential, particularly for individuals working in the gig economy. They encounter distinct challenges concerning career progression, professional connections, and the pursuit of stability in an uncertain job market. [40] Furthermore, globalisation and technological advancements add complexity to these dynamics as workers worldwide vie for gig opportunities, presenting opportunities and challenges [27].

This study aims to: (1) identify factors influencing career development among professional gig workers; (2) investigate the key career-related challenges encountered by gig workers; and (3) provide insights and practical recommendations to inform policies and organisational practices that effectively support gig workers’ career advancement ([19], [29]).Understanding these dynamics can assist stakeholders in navigating the complexities of the evolving labour market and creating a more supportive environment for gig workers.

OVERVIEW OF THE GIG ECONOMY

The gig economy has recently become a significant and transformative influence in the labour market, changing how work is organised and understood. This employment model features short-term, flexible jobs typically facilitated by digital platforms, enabling individuals to provide their services as required [34]. The gig economy illustrates a significant transformation in work and employment relationships, driven by swift technological advancements and evolving consumer behaviour [13].

The gig economy is a labour market defined by short-term contracts and freelance work rather than permanent employment. The economy links task-givers and gig workers via intermediary platforms, enabling various services from ride-sharing to freelance graphic design [12]. However, the gig economy differs from traditional employment, allowing workers to choose when, where, and how much they work rather than being tied to full-time positions with long-term contracts. The rise of the gig economy has occurred alongside technological advancements, especially the growth of internet-based platforms that allow individuals to connect with potential employers or clients effortlessly [8].

In this new landscape, flexibility is frequently highlighted as a significant benefit, enabling workers to organise their schedules and workloads based on personal preferences and situations. This flexibility presents challenges, especially concerning job security and access to benefits usually linked with traditional employment ([12], [34]). However, the gig economy has changed employment by providing distinct opportunities and notable challenges. A key feature is the flexibility it offers to workers. Gig workers can select the tasks they want, determine their working hours, and often control their work environment, significantly improving their work-life balance [4]. Besides, this flexibility attracts a wide variety of individuals, including students and experienced professionals, looking for additional income or different work options [8].

However, the flexibility inherent in gig work also involves significant risks, particularly income fluctuations and limited access to traditional employment benefits, leading to increased vulnerability among gig workers ([25], [26]). For example, Singapore’s SkillsFuture programme explicitly supports gig worker upskilling through structured training initiatives [41]., while digital platforms in other regions facilitate informal networks and community-building to address employment stability, reflecting varying regional responses to gig economy challenges ([12], [34]).

Digital platforms serve as the foundation of the gig economy, linking workers to job opportunities and streamlining the entire work process, from job matching to payment [11]. These platforms offer important services that simplify the gig work process and raise concerns regarding the power dynamics. Control platform companies’ influence on gig workers concerning task availability, payment structures, and ratings can significantly affect workers’ experiences and livelihoods [34]. The differences between gig and traditional employment include job security and compensation structures. Traditional employees benefit from steady incomes and job protections that offer career security and predictability. In contrast, gig workers function under temporary agreements that can be ended at any moment, resulting in unstable income and employment conditions [12]. The compensation model in the gig economy usually functions on a per-task basis instead of providing a steady salary, which makes financial planning and stability more challenging for workers [35].

The characteristics of workplace relationships and culture vary significantly between the two models. In traditional environments, employees typically belong to unified teams, promoting a sense of togetherness and assistance in the workplace. On the other hand, gig workers typically operate independently, finishing tasks alone with little continuous communication with clients or coworkers. The absence of community may result in isolation and disconnection [36]. Moreover, the labour rights granted to traditional employees, such as minimum wage laws, workplace safety regulations, and protections against unfair termination, are often not accessible to gig workers. This situation raises significant ethical concerns regarding their treatment in the labour market [20]. The gig economy raises ethical considerations that go beyond just protecting workers. It also includes significant societal issues like income inequality, worker exploitation, and the decline of traditional labour rights. Policymakers and industry leaders must work together to create regulations that guarantee fair treatment for gig workers while maintaining the flexibility that makes gig work appealing. This involves examining options for portable benefits, setting minimum earning standards, and developing transparent dispute resolution processes.

The gig economy represents a significant change in work structure, offering opportunities for independence while posing serious challenges regarding income stability and worker protection. As gig work expands and changes our perception of employment, it is essential to examine its complexities. The wish for flexible work options alongside the necessity for job security and benefits. Grasping the structure of this changing labour market is essential for creating effective policies that safeguard and appreciate gig workers in today’s economy [17].

GIGS VS TRADITIONAL

The gig economy has become a notable alternative to traditional employment, changing the work landscape significantly. This new employment model provides flexibility and independence, drawing in numerous workers. Nonetheless, it brings challenges that set it apart from traditional employment frameworks.

The primary distinction between gig work and traditional employment lies in the level of job security. In traditional employment, workers usually receive long-term contracts that ensure a steady pay cheque and a defined set of benefits. This stability is attractive because it enables employees to plan for the future, obtain loans, and sustain a consistent quality of life. In contrast, gig workers participate in short-term contracts or freelance jobs, frequently resulting in variable income sources. Thus, this variability can lead to considerable financial stress, as gig workers might experience periods of unemployment during downturns or when the demand for their skills diminishes [12].

Additionally, job benefits represent another important difference. Traditional employment typically offers health insurance, retirement plans, and paid leave benefits that many permanent employees often overlook. In contrast, gig workers frequently do not have access to these vital benefits, which puts them at risk, especially during health emergencies or economic downturns. However, the lack of a social safety net makes the gig revenue model more complex, as gig workers must obtain their health coverage and retirement savings [20]. This unstable working condition prompts concerns regarding the long-term viability of gig work as a career option.

A notable distinction exists in the structure and dynamics of work. Employees typically work and collaborate with their peers within a well-organised setting. This creates a sense of community and belonging, improving job satisfaction and morale. On the other hand, gig workers function independently, frequently missing out on consistent engagement with other workers or clients. This isolation can lead to loneliness and exclusion from a supportive workplace culture [36]. Professional growth and networking potential can be hindered without collaborative opportunities, restricting gig workers’ access to mentorship and career advancement.

The flexibility of gig work presents both advantages and disadvantages. Traditional employees typically follow set schedules and have restricted influence over their work settings, whereas gig workers can choose projects that match their skills and interests. This flexibility enables workers to achieve a better work-life balance by allowing them to decide when and where to work [11]. However, this same flexibility can result in unclear work boundaries. Gig workers often face challenges in disconnecting due to the absence of fixed hours or locations, leading to potential burnout and negative impacts on mental health [33]. On the other hand, traditional employment offers more apparent separations between work and personal life.

Furthermore, the compensation structure varies significantly between the two models. Traditional employees earn a consistent income, typically through a salary, which may be enhanced by overtime pay or bonuses. Thus, this structure can result in a more stable financial situation, enabling individuals to budget and save effectively. Gig workers usually receive payment for each task or project, resulting in significant variations in their earnings. However, this variability can make financial planning more difficult and create challenges in managing expenses [8]. Gig workers may encounter the challenge of unpredictable pay cheques, which can lead to increased stress compared to those in traditional employment.

Finally, the regulatory environment adds another level of differentiation. Employees in traditional roles benefit from labour laws that ensure minimum wages, overtime compensation, and safety standards in the workplace. These protections ensure that employees are not exploited and receive fair treatment in the workplace. Gig workers frequently find themselves in a confusing situation, as they are legally categorised as independent contractors, which excludes them from numerous labour protections. The absence of regulatory oversight complicates the situation for gig workers, making them vulnerable to unfair practices and exploitation by platform companies [26].

In summary, the gig economy offers flexibility and independence, drawing in numerous individuals. It also presents significant risks and challenges quite different from traditional employment. The lack of job security, benefits, and community, combined with the unpredictable nature of gig income, creates a working environment that requires careful consideration. Finally, as the gig economy evolves, it is crucial to address these disparities to ensure that gig workers have the same protections and opportunities as traditional employment workers.

The following table offers an intuitive comparison between gig work and traditional employment to enhance understanding of these distinctions:

TABLE I

This comparative analysis highlights the fundamental contrasts between these employment models, illustrating both the opportunities and challenges that gig workers face compared to their traditionally employed counterparts.

EVOLUTION OF CAREER CONCEPTS

The evolution of career concepts reflects broader societal changes and technological advancements throughout history. Traditionally, careers were viewed through the lens of stability and longevity, often characterised by long-term employment with a single organisation. This perspective was prevalent during the industrial era, where rigid hierarchies and clear pathways promoted job security and defined career trajectories. Workers generally sought promotions and upward mobility within their organisations, aligning their professional aspirations with the stability offered by traditional employment models [8].

In the past, the career landscape was shaped by economic conditions, labour market trends, and sociocultural changes. The post-World War II period was characterised by significant economic growth, resulting in job stability and the creation of welfare programs that facilitated long-term employment. However, as economies became increasingly interconnected and technology progressed, the job market started to change, leading to the emergence of what we refer to as the gig economy. This transformation indicates a notable change from the earlier emphasis on stability to a more dynamic understanding of careers defined by flexibility, autonomy, and the capacity to steer one’s career path [21].

The gig economy has reassessed conventional career ideas, establishing new dynamics that emphasise flexibility rather than stability. Workers more frequently opt for short-term, task-focused roles in this situation instead of committing to permanent organisational positions. Digital platforms facilitate connections between freelancers and employers, creating a fast and accessible labour market [11]. Hence, this shift questions the traditional view of employment as a reliable security source and predictability since gig workers frequently face income instability and limited access to essential benefits [35].

Additionally, with the significant shifts in employment structures, there is a growing focus on personal responsibility in managing one’s career. Workers are urged to take the initiative in shaping their career paths, exploring different opportunities to connect their aspirations with their professional pursuits [31]. This change encourages flexibility and strength, enabling people to build careers that meet their personal goals in a constantly changing work environment [12].

This evolution has significant implications for organisational practices, requiring a redefinition of policies and support systems to cater to a diverse and transient workforce. Organisations must implement flexible strategies to adapt to this new landscape as the workforce increasingly embraces boundaryless and protean careers, where individuals take control of their professional paths. In summary, the evolution of career concepts signifies a shift from stability to flexibility, reflecting the dynamics of modern employment practices. Hence, acknowledging these changes is crucial for individuals and organisations as they navigate the complexities of the current labour market and strive to create an environment that promotes career growth and sustainability.

A. Career Development in the Gig Economy

The gig economy has changed traditional employment models, presenting worker opportunities and challenges. As more individuals engage in freelance and contract work, it is essential to comprehend the specific challenges they encounter in their career development. Gig workers enjoy flexibility and autonomy in their roles but face challenges that hinder their career advancement and overall job satisfaction.

A significant challenge for gig workers is the lack of stable and predictable income. Gig workers face irregular job opportunities and fluctuating earnings, which can complicate the establishment of a stable financial foundation [7]. This instability can cause stress and uncertainty, negatively impacting personal planning, including retirement savings or professional development [29]. However, the absence of job security linked to gig work can lead to reluctance to chase long-term career objectives, as workers might focus on immediate earnings rather than thoughtful career planning [9].

Another critical issue is the limited access to benefits typically associated with traditional employment, such as healthcare, retirement plans, and paid leave. Gig workers often find themselves without the safety net that conventional employment provides, leading to heightened vulnerability during economic downturns or personal emergencies [22]. This absence of support can hinder their ability to invest in skills training or education, further complicating their career advancement prospects [37].

Additionally, gig workers encounter difficulties in forming a clear professional identity. The disjointed aspects of gig work can complicate how individuals express their career stories, which can impede their networking and personal branding efforts [29]. In traditional employment, career paths are typically clear and straightforward, enabling workers to establish a reputation through advancing roles within one organisation. In contrast, gig workers must consistently redefine and express their value to potential clients, which may result in confusion and exclusion from professional communities [39].

To successfully address these challenges, gig workers can implement various strategies for career growth. One important strategy is to focus on skill development and ongoing learning. Investing in new competencies and certifications allows gig workers to improve their marketability and adapt to evolving job demands [37]. This proactive approach to gaining skills prepares them for improved job prospects and allows them to charge higher service rates.

Networking plays a crucial role in advancing a gig worker’s career trajectory. Engaging with other professionals, joining industry-specific groups, and participating in networking events can lead to valuable connections and potential job referrals [7]. Moreover, utilising online platforms and social media to showcase skills and completed projects can help gig workers build a strong personal brand, making them more visible to potential employers [9].

A financial plan is essential for gig workers aiming for career stability. Implementing budgeting strategies, saving for taxes, and setting aside funds for retirement are crucial steps to reduce the financial uncertainties linked to gig work [1]. Additionally, looking for professional associations or networks that provide resources specifically for gig workers can offer essential assistance in addressing their distinct career challenges [22]. The gig economy presents career growth challenges while offering flexibility and independence opportunities. Understanding the challenges gig workers face, such as income instability, lack of benefits, and difficulties establishing a professional identity, enables stakeholders to create supportive environments promoting career growth. Therefore, gig workers can navigate their careers more effectively and achieve enduring success in a dynamic job market by focusing on skill enhancement, networking, and financial management.

B. Networking in the Gig Economy: The Importance of Networking and Building Relationships for Career Growth

In the fast-changing gig economy of today, where conventional job structures are often replaced by freelance and contract work, networking and relationship-building are essential for career advancement. Gig workers must find their way through a fluctuating labour market and build relationships that help them access opportunities, resources, and guidance crucial for their career growth. This essay examines the essential importance of networking in the gig economy and how intentional relationship-building can enhance career growth.

Networking in the gig economy goes beyond simple social interaction; it is a strategic path for career development and advancement. Gig workers frequently work alone, and the absence of a stable organisational structure can hinder their ability to gain visibility and build a professional presence in their fields [15]. Moreover, networking is essential as it enables individuals to forge significant connections within their industry, thereby increasing their visibility and opportunities for job referrals. Scholars argue that active participation in networking is essential for freelancers who often do not have traditional organisational support systems ([5], [30])

Studies show that establishing and nurturing professional relationships can enhance job satisfaction and career prospects for gig workers [9]. Furthermore, networking allows individuals to discover industry trends, gather insights from seasoned professionals, and tap into hidden job market opportunities that might not be accessible through traditional job-seeking approaches. Networking enables gig workers to manage the intricacies of their professional environment with greater ease.

Building connections with peers, mentors, and industry leaders is essential for gig workers looking to advance their careers. Building a strong professional network creates opportunities for new jobs and allows gig workers to develop social capital, which is essential for advancing their careers. Social capital, which refers to the value gained from social networks, offers individuals access to resources, information, and support [38].

Participating in industry events and professional associations is a highly effective strategy for gig workers to broaden their networks. Participating in workshops, conferences, and seminars provides chances to meet individuals with similar interests and connect with leaders in the industry. These encounters can lead to significant exchanges of ideas, knowledge, and possible collaborations (Sutherland & Jarrahi, 2017) [28]. Additionally, professional associations frequently offer opportunities for networking, such as webinars and forums, where members can exchange experiences and request guidance.

Online platforms play a crucial role in enabling networking opportunities for gig workers. Social media networks, especially LinkedIn, offer platforms for individuals to display their skills, share experiences, and connect with potential clients and collaborators. Gig workers can improve their visibility and attract potential job offers by curating professional profiles and engaging with relevant content (Huang et al., 2019) [13]. However, using these platforms effectively can assist gig workers in connecting an isolated working environment with a lively professional community.

C. The Challenges of Networking in the Gig Economy

While networking offers benefits, gig workers face challenges that may impede their ability to establish strong relationships. A significant obstacle is the disjointed nature of gig work, which frequently results in erratic interactions and an absence of continuity in professional relationships. Besides, this fragmentation makes establishing a strong professional identity difficult, as gig workers may struggle to communicate a unified career narrative [29].

Additionally, the independence that gig workers appreciate can result in isolation in a contradictory way. The absence of in-person interactions among numerous freelancers operating from remote areas can lead to disconnection from possible collaborators and mentors. Reference [9] observed that this isolation could restrict their access to important insights and professional development opportunities from interacting with a community of peers.

To address these challenges, gig workers must adopt proactive networking strategies. This can include scheduling regular check-ins with contacts, participating in online discussions, and seeking mentorship opportunities. Maintaining consistent communication and demonstrating value within one’s network can transform initial introductions into long-term collaborative relationships.

The benefits of networking extend beyond immediate job opportunities; they profoundly impact long-term career advancement for gig workers. As professionals build their networks, they accumulate valuable resources and insights that can shape their career trajectories. Networking facilitates access to mentorship, which is particularly beneficial for gig workers navigating the complexities of self-employment (Jacobs et al., 2019) [16].

Mentors have the expertise and insight to assist less experienced workers in navigating the challenges that arise in their careers. Creating mentor-mentee relationships can offer gig workers personalised guidance and strategies to navigate challenges [22]. Moreover, mentors can connect their mentees with key individuals in the industry, broadening their networks.

Networking also plays a pivotal role in skill development. As gig workers connect with industry experts and attend professional events, they gain exposure to emerging trends and best practices. Continuous learning through networking can enhance a gig worker’s ability to stay relevant and competitive in a dynamically changing job market [9].

In summary, networking plays a vital role in the career advancement of gig workers navigating a complex labour market. Developing and maintaining professional relationships can increase visibility, provide access to opportunities, and offer essential resources that help individuals manage the challenges of self-employment. While challenges like isolation and uneven career trajectories are present, effective networking strategies can enable gig workers to build connections that aid their professional growth. Thus, by focusing on networking and actively participating in their professional communities, gig workers can set themselves up for success in the ever-changing gig economy.

CONCLUSION AND FUTURE DIRECTIONS

This article thoroughly examines career development in the professional gig economy, highlighting the challenges gig workers face in a fast-changing labour market. The findings emphasise the important aspects of this employment model, pointing out the opportunities and challenges that reshape conventional career paths. With the global expansion of the gig economy, it is crucial for workers to grasp the underlying dynamics to stay competitive and advance in their careers.

This study reveals an important aspect of the gig economy: while it offers flexibility and independence, it also presents job security and career advancement challenges. Gig workers often face fluctuating incomes and do not receive benefits typically linked to full-time jobs, including health insurance and retirement plans. However, this uncertainty requires a more proactive approach to career development, where individuals take charge of their professional journeys by pursuing skill enhancement opportunities and building strategic networks, as noted by authors like references ([3], [24])

Networking stands out as an essential aspect in the realm of gig work. According to research by [16], effective networking improves career prospects by providing mentorship opportunities, fostering collaboration, and granting access to valuable job leads. Reference [10] highlights that gig workers who participate in community building and connect with peers and industry professionals increase their visibility and open up opportunities for personal and professional development. Hence, this indicates that establishing robust networks based on trust and mutual advantage is essential for successfully navigating the competitive environment of gig work.

The need for ongoing skill development is essential in the gig economy. To stay competitive, workers need to develop a combination of technical skills and important soft skills like communication, problem-solving, and adaptability. Research by [37] shows that the rapid pace of the gig economy necessitates continuous learning and professional development for individuals, allowing them to remain relevant and effectively respond to new market demands. Moreover, this emphasises the need to establish training, workshops, and resources tailored to the specific requirements of gig workers, which can positively impact their career paths.

This article presents a clear framework that outlines the various elements of career development in the gig economy. It includes factors that influence career outcomes, such as individual motivations, market conditions, and social relationships. This exploration clarifies the current state of career development in the gig economy and presents several avenues for future research. There is a clear need to conduct empirical studies assessing the effectiveness of various networking strategies designed for gig workers. Furthermore, the literature highlights the significance of connectivity, yet it is crucial to explore actionable networking frameworks that support gig workers.

 Additionally, examining the role of organisational practices in the gig economy presents a valuable opportunity for future research. As gig work becomes more established in different industries, research could examine how organisations can assist gig workers through innovative HR practices that promote skill development, mentorship, and opportunities for career advancement. Exploring the intersection of gig work and traditional employment practices allows researchers to offer insights that enhance worker support systems.

Another significant aspect to consider is the impact of technological advancements on gig work. With the rise of AI and automation, analysing how these technologies shape career paths and influence job security is crucial. Research focusing on the relationship between algorithmic management practices and the professional development of gig workers, as discussed by [9], can reveal important insights regarding worker autonomy, motivation, and satisfaction.

Additionally, exploring the demographic factors influencing career development among gig workers, such as age, gender, and socioeconomic background, could yield essential findings. Understanding how these variables impact access to resources, networking opportunities, and skill development can inform policies and interventions aimed at supporting diverse gig worker populations.

This article concludes by contributing to the broader discussion on the gig economy and career development, emphasising the intricate factors that influence gig workers’ professional paths. Translating these insights into actionable strategies requires practical, policy-driven solutions that acknowledge the distinct structure of gig work. Policymakers should consider establishing a portable benefits system, enabling gig workers to access health, retirement, and insurance coverage irrespective of job contracts. Such a system would provide financial protection and security that is currently lacking for many freelancers. Additionally, structured skill enhancement programs, modelled on successful regional practices such as Singapore’s SkillsFuture initiative, could significantly enhance the career sustainability of gig workers by equipping them with in-demand competencies and lifelong learning opportunities. By embedding such initiatives within national workforce strategies, stakeholders can foster more inclusive, resilient, and future-ready labour markets that empower gig workers beyond the constraints of precarious employment.

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