In a gig economy, temporary, flexible jobs are commonplace and companies tend to hire independent contractors and freelancers instead of full-time employees. A gig economy undermines the conventional economy of full-time employees, who often prioritise professional advancement.
The rapidly burgeoning gig workforce is ushering in a new economic revolution globally. India is the new frontier of this revolution due to its demographic dividend of a half-billion labour force, the world's youngest population, growing urbanisation, widespread use of smartphones and related technologies, and rapid urbanisation.
NITI Aayog defines as - Gig workers– those engaged in livelihoods outside the traditional employer-employee arrangement – can be broadly classified into platform and non-platform-based workers. Platform workers are people whose jobs rely on digital platforms or online software apps. Non-platform gig workers often work part- or full-time in the traditional industries for a casual income and on their own accounts.
The NITI Aayog study estimates that in 2020- 21, 77 lakh (7.7 million) workers were engaged in the gig economy.The gig workforce is expected to expand to 2.35 crore (23.5 million) workers by 2029-30.
Here are a few benefits that firms have experienced
The ability to reduce prices and expenditures is often cited as one of the key advantages of working in the gig economy. This is so that companies don't have to maintain costly workplaces and big offices and may recruit employees who don't work on-site. Additionally, using independent contractors completely eliminates costly expenditures like paid sick leave, retirement plans, and benefit packages for employees.
2. Labor Force
The gig economy provides a labour force that is able to directly match the company to the freelancer. This removes the hassle of dealing with a middleman throughout the hiring process, thus, making it easier to find people to complete the job.
3. Output Production
Today's employees are starting to place a higher value on flexibility than they did in the past. Because of this, the gig economy is thriving. People who are interested in earning additional money are drawn to applying for jobs that have unusual work schedules. This kind of adaptability has a direct influence on workers' sense of motivation, which has a favourable association with output generation.
Some of these benefits that the employees experienced are listed below:
Independent contractors in the gig economy are not required to work in offices, rather, they work in their own spaces. It varies from someone delivering food on cycle to someone working from their car driving for Uber.
In the gig economy, employees are free to work whatever hours they choose. In most cases, a task will be given to a worker with a dead line, but when they work on it is completely up to their discourse.
As was already said, the gig economy is becoming more and more popular because of how flexible it is for people to make additional money.
The gig economy has significant drawbacks despite its advantages. Gig economy trend can make it harder for full-time employees to develop in their careers since temporary employees are often cheaper to hire and more flexible in their availability. In other businesses, workers who desire a conventional career path and the stability and security that accompany it are being pushed out.
The flexibility of working gigs might upset the work-life balance, sleep habits, and everyday routines of certain employees. Flexibility in a gig economy often means that workers have to make themselves available any time gigs come up, regardless of their other needs, and must always be on the hunt for the next gig.
Last but not least, long-term connections between employees, employers, customers, and suppliers may deteriorate as a result of the fluidity of gig economy transactions and interactions. The advantages that come from long-term relationships of trust, established routines, and familiarity with customers and employers may be eliminated as a result.
NITI Aayog in its latest report on gig economy has made following recommendations :
Similar to the very successful Startup India project, a Platform India effort may be introduced, focused on the pillars of speeding platformization via simplification and support, funding and incentives, skill development, and social financial inclusion. Self-employed people in the food service industry, such as those selling street food, regional and rural cuisine, etc., may be connected to platforms so they may offer their products to larger markets in towns and cities.
Financial assistance to Platform ventures
Financial solutions especially created for platform users and those looking to launch their own platforms may improve access to institutional finance. Platform firms of all sizes should get venture capital investment, grants, and loans from banks and other funding organisations throughout the pre-revenue and early-revenue phases.
For the gig and platform industry, platform-led approaches of skilling and job creation need to be supported. In order to foster skilled employees and microentrepreneurship, platforms may cooperate with the Ministry of Skill Development and Entrepreneurship and the National Skill Development Corporation (NSDC). Transformational upskilling for workers presently engaged in the informal sector in trades such as construction, driving and other services can create avenues for horizontal and vertical mobility for workers to take up jobs in the gig and platform sector, empowering them to augment their earnings.
Enhancing social inclusion in the new age digital economy
Gender Sensitisation & Acces sibility Awareness Programmes for workers and their families: Platform businesses can undertake partnerships with Civil Society Organizations (CSOs) to enable different sections of workers such as women workers and PwDs to take up employment opportunities in the platform sector
Some measures need to be adopted by platform employers , firms need to frame a policy for the firm for ensuring social security of workers. Eg-On the lines of Indonesia’s initiatives in providing accident and other insurance to workers through digital mechanisms, ride-hailing, delivery and e-commerce platforms may adopt such a model that provides accident insurance to all delivery and driver partners, and other platform workers across India.