Gig Economy - What Is The Meaning Of Gig Economy And Its Importance | HRMantra HR Software

Gig Economy - What Is The Meaning Of Gig Economy And Its Importance | HRMantra HR Software

5-6 minutes 

The Gig Economy

The Gig economy is precisely the labor market that relies on temporary or part-time workers. These gig workers are usually independent contractors or freelancers.

These people can work independently, but they do not enjoy the benefits of full-time permanent workers.

There is no stability in such work because this concept revolves around on-demand working. The contractors might get a lot of work in one month and less influx of clients in the next or no work at all either.

What is the Gig Economy

The gig economy is characterized by temporary, flexible jobs often facilitated by digital platforms. This type of economy relies on short-term, independent contracts or freelance work rather than permanent jobs.

What are Gig Workers

Gig workers, in short, are individuals working in different capacities like freelancing or any other sort of contractual work on a temporary basis. Workers are paid for every project they complete or on the basis of results that they drive for the company which has hired them.

Many gig workers also prefer getting paid hourly depending on how many hours they have put in while finishing the assessment assigned to them.

Rise of the Gig Economy

Currently, gig work makes up 12% of the total global economy. And according to the Niti Aayog, the gig work is going to go up by 200% by the year 2030.

Well, this is happening because post-pandemic, most of the people are after work flexibility rather than job stability. At the same time, it is giving a very promising future to lots of unemployed youths and women in developing countries; so, that could be another reason for the rise in the gig economy.

Moreover, it''s also important to note that the gig work, especially the online part-time jobs, is more prevalent in developing countries in contrast of the developed ones. This is because it allows them to work in foreign countries for a better exchange rate without having to cross the border.

What is Gig Economy in India

Currently, over 15 million Indian freelancers are working on technology projects. So, yes, the gig economy has grown in India.

Apart from that, recently, almost 50 stores of Zomato in New Delhi were closed down because their delivery partners, the gig workers, were on strike opposing their new change in the policy. Their cause was supported by the government.

Knowing this, some experts also say that with this type of growth in the gig workers, they can also change the results of the polls when it comes to election voting due to their high number and unity. So, the Govt. needs to pay attention to the cause.

However, these contractors still do not have many benefits like regular full-time employees such as provident fund, minimum wage, paid leave, health insurance, or job security.

In light of this, being an HR, you should ensure that any gig worker or contractor you hire gets fair pay and flexible work policies; plus address their concerns, if any.

What are Gig Economy Examples

We can define gig economy by what you see in daily life. Some examples could include ride-sharing services like Uber, food delivery services like Zomato and Swiggy.

Plus, you might be familiar with marketplaces like Upwork or Fiverr. These platforms connect independent contractors or freelancers with companies or individuals who want to hire them.

These independent contractors could be working in any kind of industry be it marketing and design or tech.

What Factors Contribute to Gig Economy Growth

Gig economy is on the rise, and a lot of factors contribute to its growth.

• The number one contributing factor is the growth in startups. These small companies don''t have enough budget to hire full-time employees so they go for freelancers and independent contractors.
• The next factor is generations. Many millennials are opting for gig work instead of full-time permanent jobs to gain the benefit of flexible work-timing; another reason is to work from where they want.
• Even generation X is taking part in it. They''re using their experience and knowledge to grow into consultants working independently.
• Many MNCs are also opting for freelancers and independent contractors to cut the cost for operational expenses.
• It can also be one of the reasons for this economy to grow due to the increased freelancing platforms providing more ease to connect individual contractors and employers.

What are Gig Economy Jobs

Some of the top gig economy jobs are the following:

• Ride-hail and Food Delivery Drivers: These drivers and delivery partners work with companies like Uber, Zomato, and Swiggy. They get paid depending on the number of rides or orders they have accepted.
• Freelance Writing: This category consists of those people who deal with content and copywriting. Freelance writers can be hired to develop your company''s product documentation, write blogs and articles, or other similar writing jobs. They can bring a lot to your in-house marketing team to have many things done.
• Online Tutoring: This has been in existence for a bit. Many have the opportunity to level up their career because of people teaching essential knowledge about the industry, fashioned from their experience. You can find some of those people on platforms like Udemy or Coursera.
• You can also do other jobs such as graphic design, short-term rental hosting, virtual assistant, pet services, social media management, and many more.

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