Overview of the Gig Economy
A gig economy is a form of the free market where businesses frequently use independent contractors for brief assignments and temporary roles are popular. A task that lasts for a set amount of time is referred to as a "gig" in colloquial language. The phrase has historically been used by musicians to describe a performance engagement. Freelancers, independent contractors, project-based employees, and temporary or part-time personnel are a few examples of gig workers. Customers and gig workers are frequently connected using digital technology and gig apps.
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This implies that independent contractors can accept a position or project with an employer anywhere in the world. The best candidate for a particular project can be chosen by employers from a wider pool than is accessible in any one location. Along with the sharing economy, gift economy, barter economy, and more adaptable occupations, the gig economy is a component of a changing cultural and commercial environment. The gig economy's cultural effects are still evolving; for instance, employment patterns have been significantly impacted by the COVID-19 pandemic. Here are some important points for the gig economy:
- In a gig economy, organizations often hire independent contractors and freelancers rather than full-time workers and temporary, flexible jobs are frequent.
- The traditional economy of full-time employees, who rarely move roles and instead prioritize a lifetime career, is threatened by the gig economy. Models of Uber, Ola, Swiggy, etc. employees
- In this economy, tech-enabled platforms let customers hire services on a temporary basis by connecting them with gig workers. Gig workers include independent contractors, freelancers, part-time employees, and self-employed individuals.
- The project-based gig economy enables service providers to reduce overhead expenses, and gig workers receive payment for particular tasks completed as opposed to a set income.
- By enabling labor to be more flexible and responsive to demand flexible lifestyles, the gig economy can benefit consumers, businesses, and workers. However, the deterioration of long-standing business and consumer ties might have negative effects on the gig economy.
- Gig culture is already in use in industries like journalism, real estate, law, hospitality, management, medical, allied health, and education.
Gig Economy in India
In India, with businesses increasingly preferring to hire gig workers, the COVID-19 pandemic-induced shift to remote working has obscured the long-standing doubts about the effectiveness and dependability of contractual or part-time employment. According to research by ASSOCHAM, India's gig economy is predicted to grow to US$455 billion by 2024 at a CAGR of 17% and has the potential to grow by at least two times the pre-pandemic projections. After the United States, China, Brazil, and Japan, India has risen to become the fifth-largest country for flex-staffing. The states with the most opportunities for flex workers to flourish include Haryana, Madhya Pradesh, Andhra Pradesh, Gujarat, and Telangana. According to another estimate, India will probably have 350 million gig jobs by 2025, providing a significant opportunity for job searchers to seize and adjust to the shifting nature of the labor market. There are about 15 million freelancers working in India on tasks related to IT, HR, and design. The workforce in India is also expanding by about 4 million people a year. Additionally, given that the majority of them are young millennials, gig contracts are becoming more popular with them. In the near future, this tendency is anticipated to have a considerable impact on the gig economy.
Why is Gig Economy Preferred by Employers?
Job searchers favor the gig economy for a number of reasons, including autonomy in the job position, desired work hours, the lack of age restrictions or bias, and flexible payment options. The availability of gig work for employees in Tier-2 and Tier-3 cities has also helped close the gap in the employment issue in rural India. Gig workers have the freedom to perform excellent work thanks to flexible work schedules. They have the ability to prioritize and focus on the topic at hand without becoming side-tracked. Businesses gain from this as well since they may reduce pay and social security benefits because they are not dependent on loyal employees.
People who want to supplement their income with a temporary contractual job should take advantage of the opportunity. The fact that the employment trends for white, blue, and grey collar jobs differ from one another is also extremely strange. The majority of grey collar occupations are entry-level positions that graduates, stay-at-home, and even seasoned professionals can perform with no training. Brands are now free to work with competent freelancers to get a result that is economical. By using gig workers, recruiting and training expenses can be reduced.
Role of Technology in the Gig Economy
Keep in mind that technology is what gave rise to the "gig economy" and is what will see it through to maturity. The monopoly of employers on work schedules has been broken, giving all stakeholders greater power over their employment. Businesses are starting to view the gig economy as a crucial part of their human resources strategy. Consider Instapage, a business with headquarters in San Francisco, which used Upwork to outsource work and ended up saving $2.3 million. Similar to this, platforms were developed to connect individuals with those who might be interested in their goods or services. For instance, Air Gigs offers musicians and vocalists the chance to record vocals for paying customers. Anyone may now offer almost any service for a fixed price thanks to Feverr’s diversified freelance economy.
Challenges Faced by Gig-workers in India
- The lack of a clear employment relationship is the fundamental problem with gig economy workers in India. The majority of the time, businesses can regard their gig workers as employees in terms of the control they exercise over them, but without providing them with any employee perks like insurance, medical benefits, an employee provident fund, bonuses or gratuities, etc. and there is No employment stability and heavy workload in the gig economy.
- Low wages: In India, gig workers claim that the poor pay frequently forces them to put in more than eight hours a day and work every day of the week. Additionally, gig workers claim that there is no adequate grievance redressal mechanism available to them to address their real issues.
This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.
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