“If I had an hour to solve a problem I’d spend 55 minutes thinking about the problem and 5 minutes thinking about the solutions.”

• Albert Einstein
• What is Gig Economy?

–  Refers to a work engagement where on one side, there is a service seeker i.e. a consumer with a demand for a specific task, and on the other side, there is a service provider i.e. gig worker who can perform that specific task.  Gig economy is a tech-enabled platform that connects the consumer to the gig worker to hire services on a short-term basis.

• What is the purpose of Gig Economy?

– Gig economy is a project based which allows the adopter to cut overhead costs, and the gig worker to get paid for a specific task performed instead of receiving a fixed salary. Gig economy, thus moves from a traditional shift and job structure to an on-demand, freelance and task-based economy.

• Who are Gig Workers?

– Gig workers are basically self-employed, freelancers, independent contributors and part-time workers

What are the trends in Gig Economy?

– The size of Gig economy is projected to grow globally by a 17 percent Compound Annual Growth Rate (CAGR) and generate a gross volume of ~$455 bn. by 2023.

– India has emerged as the 5th largest country for flexi-staffing after US, China, Brazil and Japan.

– Digital platforms have emerged as enablers for employment creation with the power to easily discover job seekers and job providers.

– Gig economy is gaining popularity and huge potential exists for white-collar workers due to demand increasing demand in industries such as project-specific consultants, logo/content designers, web designers, etc. besides the existing demand for blue-collar workers like Uber / Ola drivers.

• What are the factors changing in Traditional Economy?

–  Internet: Now, a person can find, apply for and get a job without ever being near the company they are working for. Moreover, gig workers can even get training, anywhere in the world, to specialize in just about any area of business they prefer. The internet has not only given us the power to find opportunities, but also the power to find and get training that is desirable for employers.

–  Brain Power: The new gen people and the millennials: what they have learned about the brain in the last decade is amazing.  We now know that human beings aren’t meant to work eight hours straight, they aren’t even meant to sit in chairs for long periods, both of which traditional jobs require of their employees. So how did we get here? The eight-hour workday is a product of the 1938 Fair labour.

–  Changing nature of work: the traditional working hours, which limited the workweek to 48 hours or 8 hours per day is changing to flexi timing or work from home in many companies except manufacturing industries. Numerous studies indicate that a short break after an hour of working can result in peak performance.

– Competition: With the increasing pressure of the competition, the companies are finding the way to maximize profit through various cost saving measures. In doing so, it is easier and cheaper for a company to hire a freelancer to work remotely without having added costs of hiring and on-boarding an employee. Freelancers don’t need office space, benefits, expense reimbursements or any of those other factors that employees require.

• How the Gig Economy benefits the company and freelancers?

–  While the company can save money on space, benefits by engaging freelancer, rather it is also worth noting that company can bank on quality and specialized talent which is the significant factor for company’s success. Whereas, the freelancers find flexibility in their work schedules, exhibit agile and innovative to build customer confidence and align life passion with work.

(Data source from Google.com)

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Best Wishes for your career,

Giri Krishnan

BE (Mechanical), MBA (Operations),

Certified Independent Director

Founder CEO, Futures And Careers, https://futuresandcareers.com

Founder CEO, Upskill Learn, https://upskilllearn.com

Member of IOD, NHRD, NHRWA, IIE, National Entrepreneurs Community-Confederation of Indian MSME

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