What exactly is the Gig Economy?
In a gig economy, temporary, flexible jobs are prevalent, and companies hire autonomous contractors and freelancers rather than full-time employees. A gig economy weakens the traditional economy of full-time workers focusing on career development. It often involves connecting to clients through an innovative online-based platform(s).
Understanding the Gig Economy.
Many people work in part-time or remote positions or as autonomous contractors in a gig economy. The gig economy is cheaper, with way more efficient services, for instance, Uber or Airbnb, for those who wish to use them. Metropolitan cities tend to have the most advanced services and are the most fortified in the gig economy. A large variety of positions fall into the list of a gig. The work could range from driving a cab for Uber or delivering food for Zomato or Swiggy to writing code or freelance blogs and articles. Part-time professors, for example, are mostly contract employees, contrary to permanent professors. Colleges and universities cut costs and match professors to their academic needs by hiring part-time professors.
Who works for the Gig Economy?
According to a survey conducted by McKinsey and Company in 2016, independent workers fit into these four segments:
1. Free agents who choose autonomous work and drive most of their income from it.
2. Casual earners who use independent work by choice for side income.
3. Reluctants, who make a major of their living from independent work but usually prefer traditional jobs.
4. Financially strapped, who do extra autonomous work out of necessity.
What Motivates Gig Economy Workers?
The gig economy assures workers more flexibility to work whenever and as much as they want, and that’s why so many people start working in a gig to earn extra income outside their day jobs.
Criticisms of the Gig Economy
Despite its benefits, there are some downsides to the gig economy. However, not all employers are inclined toward hiring on-contract employees. This gig economy fad can make it hard for full-time employees to excel in their careers since temporary employees are often less expensive to hire and way more flexible in their availability and schedules. Workers who like a traditional career path, stability, and security are being overpowered in industries.
For some, the flexibility of working gigs can disturb the work-life balance and daily life activities. Flexibility in a gig economy more than often means that workers must be available whenever the Gig comes up. Irrespective of their other needs, they must always hunt for their next Gig.
Competition for getting gigs has increased, which has resulted in unnecessary stress for freelancers and other gig workers. Working in the Gig also means that the secureness of a steady job, referred to as work for generations, is becoming a thing of the past.
Finally, long-term relationships between workers and employers can degrade due to the fluid nature of gig economy transactions and connections. This can reduce or eliminate the benefits of building long-term faith, customary practices, and familiarity with clients and employers. It could also discourage investment in relationship-specific assets that would otherwise be profitable since no party is incentivized to invest significantly in a relationship that only lasts until the next Gig comes along.
Even if most people are unaware of it, the gig economy has existed for a long time. Even though it isn’t new, the gig economy isn’t for everyone. While flexibility and being your boss appeal, the negatives of inconsistent pay and a loss of benefits do not always outweigh them.