As the world welcomes 2021, there is high hope on the horizon for both employees and employers. Among many positive trends, one of the upcoming drivers for employment generation is the gig economy. There’s no doubt the gig ecosystem is all set to expand in 2021 and beyond. The moot point: how considerably and how rapid will it develop. When it comes to India, the nation has been a somewhat late starter and at present has 3 million-plus gig workers. Conversely, the US has been the frontrunner and now has more than one-third of its personnel on the gig platform.
Beneficial Business Model
The gig platform has been specifically valuable in maintaining BCPs (business enterprise continuity plans) going throughout the lockdowns and restrictions of the previous nine-odd months. The gig model has benefitted enterprises by permitting good autonomy and flexibility in setting work schedules and deadlines as per mutual comfort. It has also proved to be an incredibly effective model for work-from-dwelling and remote working regimens.
Incidentally, a crisis comes as a blessing in disguise for the gig ecosystem. While the model had been about for some years, the 2008 monetary crisis in the US that reverberated worldwide led to the initial inadvertent push for the gig economy. As providers sought to maintain operations going when paring operational spends, freelance workers presented the ideal way of lowering expenditures by means of a higher price-advantage ratio. The 2020 coronavirus outbreak has accomplished considerably the very same. Whereas gig work was progressively gathering momentum, COVID-19 compressed the procedure of years into weeks.
With numerous sectors struggling to get operations back on track, the greatest advantage of the gig is it supplies the most competent freelance experts at decrease or versatile charges as per the outcome. Some massive firms have currently knowledgeable the positive aspects of getting the ideal talent accessible at quick notice at affordable prices, in contrast to complete-time personnel who come with added expenditures and overheads. Given this situation, medium-sized and smaller sized entities will adhere to suit as soon as they recognize the all round positive aspects of working with gig workers.
Meanwhile, as millions of jobless personnel contemplate their future, freelance work is the most promising choice. The principal benefit is the freedom to work from anyplace, anytime when adhering to contracted timelines. Gig workers have realised they no longer need to have to live in the metros or Tier-II cities. Thanks to the decision of working from their native towns, workers uncover living with parents an incredibly price-helpful choice. While higher city rentals are removed, they also save or limit F&B and other spends as the price of living in Tier-III and Tier-IV towns is considerably decrease than the metros. Moreover, they also get the chance to upskill themselves due to the fact no time is lost on everyday commutes.
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As telecom and tech tools have penetrated pan-India, it is uncomplicated for individuals to work for city-based providers remotely. This working model delivers societal and employer positive aspects also. People no longer have to be concerned about wasting a handful of hours commuting to and from regular workplaces. As a outcome, the lack of everyday commutes suggests a minimal carbon trail by way of decrease vehicular pollution. Comprehending the positive aspects, providers will be more prepared to shift some roles to gig workers in the coming days. But these reluctant to do so could shed out on the competitive benefit.
Other Riders and Drivers
From an employee’s point of view also, the needle is swinging from reluctance to acceptance. Although circumstantial constraints could be the motivator in a handful of instances, other people who have been freelancing are enjoying its flexibility. There is, having said that, a more sensible explanation why individuals really should no longer count on decades-lengthy tenures in providers.
The increasing shift to digital is triggering a higher need to have for specialisation as the age of automation and AI needs new expertise. Yet, swift technological alterations have also shortened the half-life of certain expertise. Therefore, the ideal recourse is for personnel to periodically maintain reskilling and/or upskilling to make certain they normally keep some actions ahead of the redundancy curve.
Significantly, the new Labour Bill passed by Parliament in September tends to make it a lot easier for providers to relieve workers when needed, which can act as yet another trigger for a shift from complete-time to freelance.
Finally, a main misconception needs clarification. The gig worker no longer denotes individuals working for Ola, Uber, Zomato, Swiggy, Amazon, or other new-age entities. The pandemic has confirmed that even complicated major management roles and tasks can be performed equally, or more, effectively from dwelling or when working remotely. Technological tools such as Microsoft Teams, Google Meet, Zoom, and other people have ensured genuine-time communication can be accomplished everyday from anyplace and anytime. In quick, technologies has created geographical barriers redundant. In 2021 and the decade that follows, demand will be the principal driver, not proximity.
For providers also, the concentrate on employee retention could not necessarily be the ideal operating model. While complete-time, lengthy-term roles could be crucial in pick segments, the flexibility of gig experts can maintain the workforce and allied expenditures lean. In the ultra-competitive occasions of today, tomorrow, and thereafter, this can be the distinction involving the leaders and also-rans.
Sahil Sharma is the Co-Founder & CEO of GigIndia. Views expressed are the author’s personal.