Gig Economics | Redefining Traditional Employment Structures

An economy that functions flexibly and involves labour and resource exchange via digital platforms that actively match buyers and sellers is known as a gig economy. Employers in the gig economy use freelancers and independent contractors rather than full-time staff members. This is because labour is assigned temporarily and does not necessitate a rigid schedule. Employee motivation is strongly impacted by this kind of flexibility, and employee motivation positively correlates with output production. The gig economy is one of the biggest business sectors with which we regularly engage, and it is steadily expanding every day. Businesses such as Uber, DoorDash, and Airbnb use gig economy setups. 

A gig economy's output includes more affordable, effective, and adaptable services that can provide customers with a quick and distinctive substitute for traditional, standardised business. It is also a very well-liked option among younger people because it can only be accessed via the Internet. People who are looking to earn additional cash are drawn to apply for jobs that provide flexible work schedules. The gig economy is estimated to provide income for 1.6 million workers worldwide.

A labour force that may match a freelancer and a firm directly is made available by the gig economy. An employer can hire individuals from a diverse pool of talent. This makes it easier to locate candidates to finish the project by eliminating the headache of dealing with an intermediary during the hiring process. Additionally, firms can hire from the gig economy at a time when it is becoming harder to find full-time employees. There is no contract to keep the employee on or concerns with letting them go if the talent turns out to be subpar. Today's workforce is starting to place a far higher value on flexibility than they did in the past. 

The gig economy does, however, have certain drawbacks. Even though not all companies like to work with contracted workers, the gig economy trend can hinder the professional advancement of full-time staff members because temporary workers are frequently less expensive to acquire and more flexible with their schedules. In certain industries, workers who favour a traditional career path and the stability and security that accompany it are becoming less prevalent.

The flexibility of gig labour often interferes with certain workers' sleep schedules, daily activities, and work-life balance. In a gig economy, flexibility frequently implies that employees have to be available for work whenever opportunities arise, regardless of other commitments and needs. There is more competition for gigs now. Unemployed gig workers are typically not covered by unemployment insurance. However, despite these challenges, research indicates that 79% of people who work in the gig economy report being more satisfied and more motivated than they were in traditional employment.

Therefore, in order to ensure that this section of the workforce receives a fair share of benefits relative to their counterparts in the traditional workforce, governments and policymakers should consider offering gig economy workers long-term benefits and subsidies in exchange for their services and efforts. 

Bibliography

Investopedia. (n.d.). Gig economy: Definition, factors behind it, Critique & Gig Work. Investopedia. https://www.investopedia.com/terms/g/gig-economy.asp

Corporate Finance Institute. (2023, November 22). Gig economy. Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/economics/gig-economy/

World Economic Forum. (n.d.). The gig economy: What is it, why is it in the headlines and what does the future hold?. World Economic Forum. https://www.weforum.org/agenda/2021/05/what-gig-economy-workers/