GIG ECONOMY – A NEW TREND IN EMPLOYMENT
Blog: NASSCOM Official Blog
Who knew 2020 will be full of surprises?
This year has created history, where India was already struggling with an economic slowdown and inflation, a virus called Corona Virus came and destroyed not just India’s but the world’s economy, and the cyclone “NISARGA” left Mumbai, Kolkata and Orissa unscathed. It wasn’t the end, when Rajasthan, Haryana, and Uttar Pradesh got attacked by swarms of crop-destroying Locusts, which happened after long 27 years.
Everything had fundamentally impacted everyone’s lives, and disruption had unfolded in many ways.
However, the worst impact had been seen in the employment prospects.
India’s unemployment rate is now at a record high of 27.1%, according to the Centre for Monitoring the Indian Economy (CMIE).
India will have to come up with new trends and solutions to give a boost to its economy and employment!
Thanks to our honorable Prime Minister who brought new trend to India with its campaign of “Digital India”. Digitization had made work from home possible during the quarantine period.
However, the question arises, can our Economy operate on WORK FROM HOME basis or will it have to take few new turns in a different direction?
Obviously, working remotely is not the only solution.
21st century has been remarkable for so many things including social media, disruptive innovation, IoT, a period of recession, geopolitical surprises and above all now, the rise of the gig economy. The recession hit us at a period when either the millennial were having education or entering jobs.
Our Economy will now have to shift from the “Job Economy” to the “Gig Economy”
GIG ECONOMY will come up and will capture the demand and supply and fill in the gaps of economic development with employment.
Debjani Ghosh, NASSCOM President said “If we don’t use this opportunity to drive radical changes, it is our loss,”. She pointed out this the pandemic will change the work, and work ethics forever.
WHAT IS GIG ECONOMY?
In a Gig Economy, employees work on a contractual basis, which exists outside its traditional employment. The jobs are flexible, on a temporary basis, and mostly creating networks digitally.
People start making a living by taking multiple job roles which are project based, and it’s definitely fun since they do what they want to and whenever they wish to. No limitations.
Some are already a part of this GIG ECONOMY like Cab drivers, delivery and some are freelancers like web designers, content writers and the other talent gigs.
Teachers, sales person, independent contractors, consultants, artists are few more examples of common gig workers.
But now a new set of people would emerge, and be called as CORPORATE GIGS.
These jobs will vary from its functionality like Human Resources Management, IT, Finance, Marketing and even Law.
It is estimated that around 5-7% of the employee base will be a part of the gig model in the traditional companies.
For this, even the organization needs to work, like provide them training, on-disclosure agreements, and supporting the employees so that they get gigs according to their potential.
According to ASSOCHAM’s report, the size of the gig economy is estimated to grow at CAGR of 17%, and will hit volume of $455 billion by 2023.
Do you know, a study estimated that AMERICA will have more than 40% of the American Workers as the gig employers?
According to Edison Research, 44% people will have primary source of income working as the gig employers.
1 in 6 workers in traditional jobs want to become an independent worker.
There are no entry barriers, and anyone from any corner of the world can participate. This has increased the demand for job profiles like that of bloggers, researchers, analysts, consultants etc.
The rise of Uber and Air BnB is also a testimony to the fact that gig economy holds immense potential and it is favoring people.
HOW GIG ECONOMY CAN BE BENEFICIAL?
- PROFITABILITY – It is estimated that if more than 70% of employees will become gig workers, the profitability will increase by 10%.
- FLEXIBLE – It gives flexibility to the employers to work and explore new opportunities.
- AUTONOMY-It will bring autonomy to the workers and the cost advantage it generated for the employers. Not just this but gig workers, enjoy more control over their jobs and have more freedom over choosing the kind of work they want to do.
- NETWORKING- These tools and platforms can reach a very large pool of both workers and customers. They establish real time connections and they are effective at what they are doing, producing results not possible otherwise.
Potential opportunities that can be a good fit for jobs post covid:
- Freelancing – Jobs like that of content writer, graphic designer, web designers, social media managers, developers and marketers, will become assets of the economy.
- AI Developers – AI and Machine Learning has been in great demand. Working in this field may get a person up to $115.06 per hour. A normal bachelor’s degree and post-graduation degree is enough for the same and will be the highest paying of all the jobs.
- Block chain Architect– A block chain freelancer can make up to $87.05 per hour with proficiency in C++, python and other languages. The demand for them will grow due to increase in popularity in this sector.
- Robotics Engineer- This might help in earning $77.46 per hour and will require mechanical engineering with proficiency in 3D modelling, photo view etc.
- Virtual and AR developer – Such specialists are required by companies like Facebook, Google, Apple and Microsoft, and might provide $50.18 per hour. The ones who are passionate about programming and code, will be benefitted.
- Instagram Marketing – Little professional training is needed to qualify for this JD, and this will help many millennials who are keen into social media.
Although gig economy will provide employment to a very large number of people post covid but there will be issues because not everyone is too skilled to find a job in this highly competitive environment. There might be compliant issues, security issues, and career management issues.
Employers must understand and incorporate models and assignments in the favor of gig workers. Both the organization and gig workers shall be cautious and stay focused when it comes to the integration. Flexibility and availability shall be balanced.
While on one hand autonomy will inspire, it will result in ‘Corporate gigs’ being the ‘new normal’, with many potential win-win stories.
Palak Bhatnagar is a student , pursuing PGDM in Finance and Business Analytics at New Delhi Institute of Management , New Delhi . She is a finance enthusiast , a versatile person who likes to explore . She is a keen learner with an objective to learn and grow.
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