Looking ahead to 2024, we can expect more public policy makers will be lobbied by stakeholders in traditional organizational structures who desire to protect the status quo more so than transform current ways they conduct businesses. This is logical and to be expected. Policy makers and firms will debate the issues, often without true representation from the workers impacted. Even courts will get involved. Transformation and change, historically, have always been challenging for civilizations. Ultimately, the populace will decide, and public policy makers will respond accordingly. Labor unions may not prevail in their previous formats however, new forms of support will continue to be important for the new breed of gig worker and all 1099 workers regardless of the format they may be involved.

Public Policy Makers are paying attention to the needs of workers. The new breed of gig worker will be important as an independent workforce is not only a trend, it is becoming a preferred choice for many. The laws, rules and challenges taking place in mature economies around the world are expected to continue for the next few years. The protectionists who believe that it is important to protect old values vs embracing new values are encouraged to study and demand more research to support better understanding of the value of the gig economy and the individuals who populate the gig economy. We believe that workers want flexibility, freedom, and choices! We also know that many workers want guarantees such as a guaranteed minimum wage. Which is most important?

Recently, the state of California passed a new law that impacts several industries, the fast-food industry in particular. The state minimum wage was increased to $20.00 per hour. One company, Pizza Hut, quickly responded by terminating over 1,000 delivery drivers. Who really wins? The fact that Pizza Hut eliminated the jobs of 1,000 delivery workers does not mean that the need to deliver pizzas will not be fulfilled. If we look at what has been happening and what will continue to happen, the growth of the gig economy is on track to involve over 100 million people by 2027. Most likely, the need to deliver pizza’s will be filled by gig workers who place significant importance on leveraging their underutilized assets including time w/o sacrificing the cherished freedoms of freedom and flexibility to do the work when and how they desire. During the pandemic, McDonalds was one of many businesses that needed to get their products to their customers when their customers could not come into their store. McDonald’s solved their challenge by utilizing the services of Door Dash and other such companies. These new delivery service companies use gig workers to accomplish the task of delivering products from source to customer. They do not use employees.  

McDonald’s did not choose to buy cars and hire employees in order to deliver burgers. Pizza Hut recently made a similar decision in the state of California. One can easily say that the state of California forced Pizza Hut to make a new choice!

We predict an ongoing debate in the marketplace as to what is more important. Minimum wage will continue to be a conversation across the country and so will the opportunity and possibilities enabled by freedom of choice. When minimum wage is the focus, employees may receive a slight increase in pay. Businesses will adjust because there is no free lunch! Business adjustments can be in the form of price increases, layoffs, and even reduced quality or…. we can expect more use of Robots and Artificial Intelligence to replace what people can currently do. The future appears to be loaded with more and more choices as to how individuals can combine freedom with flexibility in how they work, start a small business, grow that business into a large business, and create a significant income earning opportunity. Currently 51%  of all companies are estimated to be utilizing independent contractors/gig workers to some degree in their business models. Note: There is no one accurate source for this data. This stat is a result of aggregated reading/research.

Here at AFE, we are preparing to provide the support the growing segment of micro entrepreneurs like you need. The Education, Information and Access to Products and Services we provide is all designed to support you in your efforts to maximize your potential.

Remember to share AFE with others who, like you, are choosing to leverage your freedom of choice!