Whenever we experience any form of economic uncertainty, it is natural for workers to become much more sensitive to the relationships between inflation and wages. Workers do not have any control over inflation. The facts are: Most workers, in the traditional workplace – employer/employee relationship, have very little control of their wages once the initial agreements are made between worker and employer. The previous sentence is not to overlook the fact that there are Performance Appraisals in the traditional workplace environment that can recommend an accelerated increase in wages when excellence in performance is observed. The insights provided in this article are not to criticize a very successful and time-tested worker/employer relationship which has served all mature economies for many years. 

This article provides a perspective. Our perspective is based upon the growing increase in individual entrepreneurship and flexible work opportunities made popular by the emergence and growth of what we now refer to as the gig economy. Our insight explores why we continue to see this new trend in interest.

1. Technology advancements have enabled a “less can be more” reality.
2. Over 70 million Americans are engaged in flexible work that they control. Most engage in flexible work only a few hours per week.
3. We are not limited to one source of income as we once were in the earlier stages of the industrial economy work model utilized by all mature economies in the world.

Facts: The average and median increase in inflation in 2024 was 3.5% over the prior year. The forecasted inflation rate for 2025 is now estimated to be between 2.2% to 2.5%. The forecasted average increase in salaries for the typical worker is 3.5% to 3.9%. When we use the higher of both forecasts, traditional salaried workers can expect a net gain of 1.4%. The previous number actually represents an increase in the value of their work-related contribution. The question: Is this enough to motivate and inspire us?  

Insight: Whenever we realize that the Return on Investment (ROI) of monies saved or invested is less than what might be possible, we tend to adjust. Perhaps, our most important measurement to watch is: Our Return on Work Effort (ROWE). In the previous paragraph (Facts), we noted that the average worker will probably have a ROWE of 1.4% at the end of 2025 when dependent upon one source of traditional income. When an incremental source of income is embraced which can yield $500.00 to $1,000.00 per month, working in a flexible manner, the ROWE immediately becomes 4% to 8%. The possibilities and choices have never been greater! Individual entrepreneurship is on the rise for very good reasons. We can now develop multiple income sources without conflicting with or disturbing the core income source.