Gig Economy: Reshaping The Future Of Work
The onset of the global pandemic reshuffled the world of work, causing businesses to digitalize and shift to working remotely overnight. The technological tumults and workplace disruptions catalyzed hiring activities globally. In the wake of dwindling talent pools and burgeoning hiring demands, the HR world has turned to the gig economy. With flexible workforces and mass adoption of remote and hybrid work models, previously untapped pools of talent suddenly became the most coveted candidates.
Today, freelancers, contractual employees and gig workers have permeated the walls of work. With talent no longer restricted to geographies, both employers and employees are participating in the gig economy.
Moving on an exponential growth trajectory, the gig economy workforce is projected to increase 3X from 7.7 million in 2021 to 23.5 million in 2030. The growing gig economy is influencing a paradigm shift in the workforce, workplace and work models and can reshape the future of work.
WIN-WIN FOR EMPLOYERS AND EMPLOYEES
The gig economy offers a mutually beneficial and sustainable workforce and workplace solution for both organizations and job seekers. In a constantly changing work environment, the gig economy enables businesses to hire a flexible workforce for their short-term needs at a minimal cost.
By hiring a flexible workforce, organizations can get the exact manpower per their staffing requirements, cut costs on training and benefits and avoid mass layoffs. Similarly, the gig economy offers independent workers a sustainable career path with greater flexibility, work-life balance and skill-based opportunities to pursue at any stage of their life.
AN EXPLOSION OF DIGITAL PLATFORMS
The gig economy as we know it today exists because of the democratization of technology. With the emergence of tech recruitment platforms, gig workers can connect with desirable projects and professional organizations. Additionally, the digitalization of knowledge has enabled jobseekers to upskill themselves for most in-demand job roles.
Similarly, organizations can leverage HR tech platforms to onboard gig workers as and when needed. Consequently, organizations are hiring employees based on skills, even if it means hiring independent or contractual workers.
Moreover, several companies are imparting digital training sessions to enhance the competency and productivity of their gig workers.
INSPIRING A NEW GENERATION OF GIG WORKERS
The surge in the gig economy today is stirring permanent employees into reassessing their working models. Remote work has already whetted the appetite of employees who have tasted the freedom of working asynchronously from anywhere during the pandemic.
Now, the gig economy is enticing the young workforce to work at their own comfort and pace and be their own boss.
As a result, millennials and Gen Z, who comprise the bulk of the Indian workforce, are considering branching out independently. The increased inclination towards flexibility, skill-based work and additional income is empowering a new generation of workers to join the gig economy.
GIVING RISE TO A DIVERSE AND INCLUSIVE WORKFORCE
Built on the pillars of flexibility and freedom, the gig economy paves the way for individuals who were excluded from permanent workforces. Instead of migrating to metropolises, talent pools from small cities can now work remotely as freelancers and contractual employees.
Similarly, working mothers, convalescent patients, or disabled employees can become a part of this independent workforce. By opening the doors to the gig economy, the world of work can give rise to more diverse and inclusive hiring practices.
Consequently, the gig economy will help organizations to widen their talent pools and enhance their workforce diversity and inclusivity. This is especially true for the tech talent in India, with a 25:75 Female: Male ratio.
INFLUENCING NEW WORK MODELS
The permanence of the gig economy in the world of work can help revamp working models such as remote and hybrid work.
Characterized by freedom, work-life balance and asynchronous work, gig economy working models can influence similar working models in conventional workplaces. Several startups have already warmed to the idea of flexible work models, and with the gig economy taking roots in the world of work, large MNCs are soon to follow.
FINAL THOUGHTS
With changing demographics, shifting employee expectations, fluid workforces, and democratization of technology, the world of work is evolving.
The gig economy will continue to mature in scope and size as organizations break away from geography and experience-based hiring to skill-based hiring. As gig work becomes more ubiquitous in businesses, they should try to capitalize on this (big) gig opportunity, rather than resisting it.
By: Dr. Amrit Das
