Posted on : 27th June 2023
Rise of the Gig Economy & Its Impact on Today’s Businesses
What is a gig economy? Broadly speaking, this refers to an arrangement where organisations and individuals hire someone to work on a contract or a short-term basis. It is also widely known as freelancing. The impact of a gig work economy might not be quite visible at this juncture; nevertheless, gig work is going to overhaul the structure of employer-employee relationships irreversibly and change the future of the economy like never before.
Basics of a Gig Work Economy
Gig work is gradually becoming the trend, and more and more individuals are opting for it as their source of additional income. Not only additional income, gig work is now increasingly becoming the principal choice of younger generations as it offers them a kind of flexibility that the traditional work environment does not.
What all these circumstances entail for the future of the
work environment is somewhat uncertain at the moment, but with proper measures and regulations, the gig economy can certainly be made conducive to the progress of the country.
Advantages of a Gig Economy for Workers & Businesses
A gig economy for workers is going to impact businesses in both ways. There are pros as well as cons, and talking about the pros, an economy for workers that is based on gigs or short-term contracts benefits workers and businesses in the following ways:
- Businesses get to shortlist from a vast pool of talent the best candidate for a specialized task at hand. New talents are well within the approach, and that too without the necessity of retaining them for a longer time than needed.
- A gig economy thrives on technology, and that makes it quite easier and faster for various businesses to find the right people to delegate tasks to, as well as make it easier and faster for various workers to find their preferred tasks from preferred businesses.
- Businesses can promote a diverse work culture this way, as individuals from different age groups and social backgrounds seek gigs in today's world. This broadens the scope of any business in bringing about a revolutionary change in society.
Disadvantages of a Gig Economy for Workers & Businesses
When it comes to disadvantages, the following points are of major concern:
- There are no rights and insurance for gig workers like traditional job holders do. This makes a gig economy quite uncertain for the ones participating in it. The government should take relevant measures and introduce stringent regulations to back up this revolution in the employer-employee relationships.
- The management of gig workers often becomes hard for leaders/businesses. Because there is not an organisational “team” that businesses have to rely upon, it becomes difficult to maintain consistency in a brand voice as well as work.
- Gigs could be as much time-consuming as they could be time-saving. Also, technology is not yet accessible to every individual looking for gig opportunities. The digital divide has to be bridged first in order to make the most of this gig work economy that is emerging.
What Does the Future Look Like?
Gigs are here to stay, and their impact on businesses and the economy are here to stay as well. Considering the advantages and the disadvantages of a gig economy, all that can be surmised is that the future is going to be dynamic and the role of this economy is going to be too.
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