The gig economy or gig model is a free-market system that enables organizations to hire independent workers for temporary positions or short-term work commitments. It includes all kinds of work arrangements like consultants, freelancers, third-party teams/networks, temporary contract workers, independent contractors, and domain-specific professionals.
Traditionally, the gig economy was most functional in digitally enabled jobs. But lately, the pandemic-induced economic uncertainties which led to unpredictable demand-supply gaps in the labour markets have forced companies—especially in the frontline sector—to consider implementing the gig model.
The gig model is gradually catching up in India, with an expansive variety of positions falling into this category. It could range anywhere from being a part-time private cab driver, graphic designer, or food delivery operator, to a data analyst.
Metro cities in India have the most evolved functioning gig cycles and also have the most developed services. Gig workers in these cities gain flexibility and independence.
Changes Brought About the Gig Culture
The gig model profits workers, businesses, and shoppers by making the on-the-go needs of businesses more accessible and achievable, while catering to the increasing trend of flexible lifestyles. Revolving around the current key metrics of flexibility, technology, and seasonality, the current workplace is quite absorbing this trend.
Also, the proliferation of technology has enabled tech platforms to expand the gig system. Irrespective of the geographical position, it has been successful to create a short-term work relationship that allows enterprises and workers to mutually benefit with equal freedom.
While it gives a lot of flexibility, it also has certain downsides. For instance, there will not be a robust co-existence of an employer-employee relationship and the benefits that come with that. There is a clear erosion of traditional economic relationships between workers, businesses, and clients.
Is the Gig Model a Win-Win?
The gig economy has benefits for both the employer and the employee. An employer has access to a wider pool of talent. If the outcome from the worker doesn’t happen to be up to the mark, there is no contract binding to retain them and no issues in letting them go.
Additionally, in a time when it has become difficult to hire and retain full-time workers, employers can hire from the gig system to effectively keep the workflow running. Moreover, hiring gig workers are cost-effective as compared to full-time employees.
For employees, the gig economy’s advantages include the option to juggle between several jobs, maintaining flexibility with the tasks in hand, and enjoying the freedom of working at their preferred location without hindering their daily routine. Research shows that 79% of individuals who work in the gig economy are more satisfied than they were while working at traditional jobs.
In a nutshell, the gig economy will become a key enabler in bridging the wide gap in labour demand and supply by uplifting the dynamic frontline workforce. The ever-changing market movements and upcoming reforms are inclined towards supporting the shift, enabling the gig model to be widely accepted.
The way forward for companies to function with a balanced culture of supporting the gig economy would be to run a hybrid model that has both full-time employees and gig workers to manage costs and operations efficiently. While full-time employees are responsible for regular tasks, gig workers can be hired as per the need and seasonality of work commitments. This would also help companies to lower their fixed costs and increase productivity.
Lastly, to attain more sustainability in the gig model, people need to focus on upskilling. Enterprises can also offer regular upskilling opportunities to their frontline employees so that they can set time aside for developing their overall career prospects.
Learning new technologies is also crucial in this regard as the key to being able to support this framework is with technological empowerment of the enterprise as well the workforce. Also, updating laws and regulations that support and balance the working of the gig ecosystem in the current workplace scenario is the need of the hour, as the current model is open to exploitation by either party.
