Gig Economy?
In a gig economy, short-term, flexible jobs are common and companies have a propensity towards signing up independent service provider and outworkers as opposed to full-time employees. A gig economy challenges the traditional economy of full-time workers who rarely change positions and instead focus on a lifetime career.
What is a Gig Worker?
Non-traditional or gig work consists of income-earning activities outside of traditional, long-term employer-employee relationships. [1]
Understanding the Gig Economy trends in India
The digital gig economy generated a gross volume of approximately $204 bn from worldwide customers in 2018. Transportation-based services contributed to over 50% of this value. The size of the gig economy is projected to grow by a 17% CAGR and generate a gross volume of ~$455 bn by 2023. India has emerged as the 5th largest country for flexi-staffing after US, China, Brazil and Japan. [2]
There are various Digital platforms surfaced that have evolved as enablers for employment creation with the command to effortlessly find out job hunters and job providers without the influence of a go-between. An increase in the education level and digital literacy level is additionally empowering this future economy.
Budding workforce culture
Due to the disruptive transformation in technology, the operational overheads for outsourcing non-core works is dipping and aiding an increase in the number of tasks that can be carried out by each employee. In consequence, organizations are sizeably diminishing and we are a witness to a rising number of start-ups that subcontract several activities to professional service providers. Despite the fact that the gig economy is the latest thing among the proletarian labourers in India, currently there is enormous prospective for the professional workers too. In all, the gig economy is escalating from less skilled services. These aspects may perhaps go ahead to creating a paucity of sustainable operations, particularly because of a swell in competition and accessibility to manifold opportunities.
Pros
- Gig economy allows ownership of task, facilitates convenience and flexibility
- Gig workforce can decide the number and the sort of assignments it takes up
- Gig workers can enjoy the autonomy of offering services only for the tasks they believe in the underlying cause
- Gig workers can sign up for tasks in which they are more skilled.
- Gig economy opens opportunity to earn extra revenue through gig work.
Cons
- There is haziness about job security
- Gig workers’ income is capricious in the initial stages, as the focus is predominantly on on-demand projects
- Unlike the conventional jobs, gig economy does not provide employer contribution to employee like EPF, health insurance, pension and paid leaves etc.
- Gig worker retention is at risk.
- Gig workers may attach a certain degree of casual attitude towards the work, as there is an absence of conventional employer-employee affairs.
Further, the gig economy facilitates space for Digital Marketplaces, offers platform to list in-demand professional services, and asset sharing, service sharing etc.
With the growth in technology and the surfacing of Artificial Intelligence in work environments, the gig work models will continue to adapt, innovate and expand beyond asset sharing, service sharing, digital listing, and managed marketplaces and will become a significant component of the future of work.
References:
- https://www.gigeconomydata.org/basics/what-gig-worker
- https://www.investindia.gov.in/team-india-blogs/gig-economy-shaping-future-work