What is the “Gig Economy”?
A gig economy is a free market system in which temporary positions are common and organisations hire independent workers for short-term commitments. Gig apps and digital technology are often used to connect customers and gig workers. The term "gig" is a slang word for a job that lasts a specified period of time. Traditionally, the term was used by musicians to define performance engagement.
Why is the gig economy getting increasingly popular?
Many working professionals leave behind the security of their 9-to-5 work for the flexibility offered by the gig economy. It is seen that the number of people taking up gig work has gone up in the past decade. Gig jobs might not be a new concept, but they have become more popular among the younger generation over the years.
India and the gig economy
According to the India Staffing Federation study (2019), India is the world's fifth-largest Flexi-staffing market, trailing only the United States, China, Brazil, and Japan.
According to Boston Consulting Group research, nearly 15 million employees in India are working as gig workers across industries. The figure is expected to climb by more than 24 million in the short term and by 90 million in the long run.
Which companies use the gig economy?
Uber and Lyft
After a disappointing 2020 in which customers spent more time at home, Uber and Lyft are both positioned for further growth in US carpooling revenues. Uber will recover more rapidly since it is starting from a better foundation and is supported by its restaurant delivery business. Lyft will have to work harder to attract new customers and maintain existing ones because its reach is limited to transportation.
Companies investing in gig work platforms and procedures demonstrate how important talent is for allowing their next level of growth, particularly in light of global uncertainty. According to the research, 46% of firms polled want to raise the share of gig employees from current levels. “Businesses that prioritise gig workers in their business strategies will thrive in 2023 and beyond," said Sashi Kumar, head of sales at Indeed India.
DoorDash
DoorDash was once again the most downloaded food and beverage app in the United States in 2021. Although its downloads were down, its US restaurant sales increased by 43.5% last year. DoorDash not only focuses on big cities but also on suburbs and smaller urban areas.
Pros
1. Self-sufficiency
In the gig economy, independent contractors are not obligated to work in workplaces; instead, they operate in their own locations. It varies from someone working from home writing articles to someone driving for Uber from their car.
2. Adaptability
Workers in the gig economy are free to work whatever hours they want. In most circumstances, a job will be assigned to a worker with a deadline, but when they work on it is entirely up to their discretion.
3. Earnings
As previously said, the gig economy is becoming an increasingly appealing industry owing to the sheer flexibility that allows individuals to make additional revenue.
Cons
While the gig economy has several benefits, it also has certain drawbacks that make the process tough.
1. Employee Commitment
Individuals who work as freelancers may not be as involved in their organisation as those who are recruited on a full-time basis. Furthermore, gig economy businesses are not recognised for incentivizing their employees.
Such an arrangement can cause challenges with loyalty, lessen the possibility of future work, and reduce the overall incentive to work.
2. Ethical Concerns
In certain circumstances, firms that participate in the gig economy are chastised for their ethical behaviour. Their work is temporary, without benefits, and does not provide a competitive rate.
The following are the drawbacks experienced by employees in the gig economy:
1. Absence of Benefits
Organisations in the gig economy do not offer perks to their employees. Independent contractors are not regarded as "employees" of the company.
2. Individual Expenses
In certain circumstances, gig economy firms are not obligated to reimburse personal expenditures such as petrol used when driving for DoorDash.
3. Isolation
Being an independent contractor is a very self-sufficient job. For some, the arrangement is a huge motivator, but for others, it can generate a sense of isolation, which can have a bad impact on output and mental health.
Top in-demand tech skills for the gig economy in 2022
Whether it has more advantages or disadvantages is something yet to be fully explored. But the gig economy is here to stay. Thus, it becomes important to prepare the future workforce for this growing economy.
The first and foremost requirement is to teach students the basic skills to work independently. Many of such skills can be: how to create a business entity entirely, how to manage a small pack office, how to negotiate prices and consulting contracts and how to develop and execute a marketing and branding strategy. These basic skills needed to be reframed to equip students to work efficiently in a gig economy. As the gig economy offers a variety of work domains, the technical skills required for working independently cannot be specified.
Some of the skills are:
- AI & Machine Learning
- Data Analytics & Data Science
- Business Analytics
- Software Development(Programming)
- Project Management
