What exactly is the Gig Economy?
In a gig economy, temporary, flexible jobs are prevalent. Companies tend to hire autonomous contractors and freelancers rather than full-time employees. Basically, a gig economy cripples the traditional economy of full-time workers who focus on their career development. It often involves connecting to clients through an innovative online-based platform(s).
Understanding the Gig Economy.
In a gig economy, huge numbers of people work in part-time or remote positions or as autonomous contractors. The gig economy is cheaper, with way more efficient service, 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 on 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 the major part of their income from it.
2. Casual earners, who use independent work by choice for side income.
3. Reluctants, who make major of their living from independent work but usually prefer traditional jobs.
4. Financially strapped, who do supplementary autonomous work out of necessity.
What Motivates Gig Economy Workers?
In many surveys conducted by leading researchers from famed institutions. The gig economy assures that workers have more flexibility to work whenever and as much as they want. That’s why so many people start working in a gig to derive extra income outside of their day jobs.
Criticisms to the Gig Economy
In Spite of its benefits, there are some downsides to the gig economy. Though not all employers are inclined towards hiring on-contract employees. This gig economy fad can make it hard for full-time employees to excel in their respective 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 and the stability and security that come along are being overpowered out in industries.
For some, the flexibility of working gigs can disturb the work-life balance, and activities of daily life. Flexibility in a gig economy more than often means that workers have to be available any time the gig comes up. Irrespective of their other needs, and 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 that has been referred to as work for generations is becoming a thing of the past.
Finally, due to the fluid nature of gig economy transactions and connections, long-term relationships amongst workers and employers can degrade. This can reduce or completely finish the benefits that come from 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 to pursue since no party has an incentive 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. Despite the fact that it isn’t new, the gig economy isn’t for everyone. While the benefits of flexibility and being your own boss are appealing, the negatives of inconsistent pay and a loss of benefits do not always outweigh them.