7 Sustainability of the rising trend of the Gig economy

Sustainability of the rising trend of the Gig economy

By: Priyanshu Kumar (MDI Murshidabad)

Workplaces are evolving, and the rise of the gig economy in recent years has been obvious. It will be intriguing to see how the gig economy continues to grow and effect the future of work, from the changing nature of labour to enterprises being driven to become more flexible, agile, and efficient.

Independent workers who are paid by the gig (i.e., a task or a project) rather than by a salary or hourly wage; consumers who require a specific service, such as a ride to their next destination or an item delivered; and corporations that connect the worker and thus the consumer directly, such as app-based technology platforms.

Due to downsizing trends among talented professionals, the rise of the digital age, where the workforce is increasingly mobile and can work from anywhere, and the effect of globalisation to create more opportunities, the Gig economy is gaining significant traction among the current generation of professionals. Today's economy has provided opportunities for independent contractors to expand their customer base both domestically and worldwide, as well as for businesses to receive professional services from the global market beyond their local market. The gig economy enables more efficient services, such as Uber or Airbnb, to be provided at a cheaper cost. These businesses serve as a link between the worker and the consumer, facilitating payment.

Three fundamental parts of labour are significantly altered by the gig economy: the work itself, who performs the work, and where the work will be performed. The gig economy isn't just a passing fad; it has the potential to change the way we recruit talent. The gig economy, according to data, will spread its wings and fly as far as it can. According to the report, a large majority of Millennials and Generation Z workers want to work in the gig economy, either full-time or as side hustlers. Companies who aren't embracing the Gig Economy are missing out on key resources. According to research, 30 percent of Fortune 500 companies use this method to hire.

Gig workers include independent freelancers, online platform employees, contract firm employees, on-call and temporary workers, and others who enter into formal agreements to provide services to on-demand businesses. Because gig workers are paid by the hour, decisions must be taken promptly, and many firms' top-down approaches will become outmoded. Active social media

networks are replacing traditional modes of working, and this new level of collaboration and reciprocity among peers will surely contradict past hierarchical arrangements.

Several factors have contributed to the growth of the gig economy. People appear to prefer freelancing to full-time employment because of its flexibility and independence. It has made it easier to find work all around the world, and it has made work more adaptable to changing requirements and wants for more flexible lifestyles. Freelancers have the freedom to make lifestyle decisions that would be unthinkable in a typical job. They can choose when and where they work, as well as how much they want to charge for their services. Companies benefit from having a flexible workforce since they save money on training and recruitment, don't have to pay for health insurance, and can more easily replace employees if needed. Contract workers are more costeffective for businesses, and employers gain from a bigger applicant pool and the fact that they don't have to hire full-time employees.

The development and widespread acceptance of supporting technology infrastructure has also contributed to its rise. IT comes second in terms of the number of freelancers hired by businesses. For a variety of reasons, 81 percent of businesses have hired gig workers. They hired freelancers for a variety of reasons, including 29.7% for project work, 26.5 percent in the absence of a fulltime employee, 24.2 percent for work that didn't require 8-hour shifts, and the rest for a variety of other reasons. Up to 53% of these organisations have hired 5-20% of gig workers, while more than 20% have hired up to 30%. This just goes to show that when a bright person is discovered, companies are eager to hire them in order to keep them on board.

While the gig economy is largely acknowledged in industrialized countries, it is also gaining traction in emerging economies, as seen by the preference of a major portion of their population. Since COVID-19, gig has helped many people escape unemployment by providing a source of income. According to a study, the gig economy employs over 200 million individuals throughout the world today.

The benefits it provides for both businesses and employees are credited with the gig economy's rapid expansion. It gives employers access to low-cost labour; it gives employees the freedom to choose projects, manage their schedules, and be accountable only to themselves.

However, the gig economy’s long-term sustainability is in question. Due to the difficulties it encounters, integration with the main economy appears to be challenging. The following are some of the most common accusations levelled against the gig economy:

1. Labor exploitation — Gig economy workers are not entitled to the same benefits as full-time employees. As a result, there are no health benefits, paid vacations, or retirement benefits. The corporation completes the work without incurring any additional costs to the employees. It can afford to pay the worker a fraction of what it would otherwise have to pay a full-time employee. 2. Job security — Gig workers are recruited on a project-by-project basis. There is no guarantee that they will be hired on a regular basis or that they will acquire regular work. Workers are constantly under pressure to find new projects and labour in order to obtain regular salary. 3. Issues with payment – Many gig workers complain about not being paid on time or at all. For many of them, payment systems aren't well-defined, allowing employers to exploit them. 4. Regulatory framework – Many countries currently lack a clear regulatory framework for monitoring the well-being of gig workers. There are no clear guidelines for businesses.

Dangerous work is outsourced to gig workers in some industries, saving employers money on medical and life insurance. 5. Emotional state — In order to succeed in the gig economy, employees must have selfdiscipline and resilience. Because temporary work is inherently insecure, the uncertainty may be debilitating. Furthermore, working alone or from a remote place might cause loneliness and even melancholy in some people. Lack of organizational support can also cause havoc in the minds of employees, lowering the quality of their work.

The gig economy is perfect for young professionals who are still determining which career path to take and so have the financial means to try out a variety of jobs.

Gig employment are on the rise all across the world, according to data. However, in order for the gig economy to be viable, employers and policymakers must provide it with a framework. It is necessary to enact rules that provide independent workers with social protection. Medical insurance, workplace safety, a defined payment structure, and job security, even if only for a limited time, will go a long way toward alleviating the uncertainties that come with temporary employment. The gig economy will only be able to survive and develop if the interests of gig economy employees are protected. The gig economy must become more structured in order to become sustainable and integrated into a country's economy.