What is a gig economy like? What is Freelancing? Is it the future or just a short living industry? Is this a viable source of income for all? Lets see the answer to all these questions?
What is this New Economy?
A gig economy is a free market system in which organizations hire independent workers for short-term commitments and where temporary positions are common. The term “gig” is a slang term for a short-term job; it was commonly used by musicians. Work arrangements such as freelancers, independent contractors, project-based workers, and temporary or part-time hires are examples of gig workers in the workforce. Freelancers and Independent contractors have been around for a while, so the gig economy is not a new phenomenon. The gig economy has come under fire in recent years because technology has reduced entry barriers to such an extent that “gigs” are now easily accessible to an unprecedented number of people. Because of the technology that enabled all of this, it has become increasingly difficult to distinguish between what constitutes the gig economy and what does not.
History of Gig Economy
• According to some human resources experts, the term “Gig” was coined in 1915 by jazz musicians to mean “Job.”
•In the year 1940, the first temp agency was established, which provided temporary employment to typists and other clerically trained personnel.
• Along with the digital era, the gig economy began to take off in the late 1990s and early 1990s.
• The gig economy, like the digital era, began to take off in the late 1990s and early 1990s. As the demand for more flexible work schedules and non-permanent staff increased in the 1990s, ten percent of the US workforce was employed as contractors, temps, and on-call workers.
• The gig economy gained prominence around 2008, when the Great Recession hit, leaving people with less secure and limited location-based work and unable to find stable work.
Covid-19, Passive Income and the Growing trends of Gig Economy
According to the findings, Covid-19 has had a positive impact on the gig economy. Since the emergence of Covid-19, the number of average daily tasks/jobs posted and filled on the platform economy has increased. Because the Covid-19 incident has created an extraordinary situation, the Gig economy is taking time to adjust to the new normal due to the prevailing uncertainty. The positive relationship between Covid-19 and Gig economy exists in the short term because the study failed to find a long-term relationship between these two.
• Businesses still have a mostly formal structure with full-time and part-time employees.
• Working with someone in the gig economy means you’ll be working with someone who has no formal employment ties.
• These individuals are solely accountable for their earnings and taxes.
Advantages and Disadvantages of the Gig Economy
Pros of the New Economy
• Flexibility: Unlike traditional employees, gig workers have the freedom to choose the types of jobs they want to do as well as when and where they want to do them. Working from home allows you to better balance your work and family schedules and demands.
• Independence: Gig work is ideal for people who prefer to be left alone while completing an assignment. Gig economy workers are mostly given almost unlimited independence to do their work when and how they think it should be done, without being hindered by traditional office interruptions such as staff meetings, progress reviews, and water cooler gossip sessions.
• Variety: Every day brings a new set of tasks and clients, which keeps things interesting and allows gig workers to be more enthusiastic and creative in their work. They have complete control over how boring or interesting their day is.
• Fewer Resources Required: Because the workforce is gig-based, companies don’t have to spend as much money on renting fancy offices and providing appealing benefits like healthcare and social security, etc. Furthermore, because the employee is already an expert in his field, the company does not need to invest in his training. • More money: Gigs are places where your work can be heard. You get paid more if you’re good at what you do. Furthermore, when it comes to gigs, there is a price for everything. If your client desires more, he will pay more.
Cons of the New Economy
• No Benefits: Unfortunately, benefits aren’t included in most gig economy jobs. Because they are not a full-time employee of the organization, the laws governing the benefits that the company is required to provide you differ. Workers in the gig economy should budget for the purchase of private health insurance. They must also plan for retirement and budget how much of their monthly payment will go towards it.
• Isolation and a lack of cultural solidarity: It may be an issue for some workers in the gig economy. Often, freelancers do not visit the office and thus miss out on the social aspects that are present. From parties to regular water cooler discussions, gig economy workers may find themselves spending their days alone, working from home or a remote location. While this increases flexibility, it can also lead to isolation from coworkers and a sense of being excluded.
• More stress: Gig economy workers must constantly be on the lookout for their next gig or be prepared for changes in their current one. This can cause stress because most people value feeling secure and stable in their jobs. Workers in the gig economy may face unexpected changes in their jobs, such as being laid off or having their salary reduced. There is also stress in being separated from other employees, and it can be difficult to communicate if there are questions or issues with a project.
• More discipline and resilience are required: Individual workers in the gig economy may have a lot of freedom, but this freedom can also lead to indiscipline at times. As the saying goes, with great power comes great responsibility, so workers will have to show even more grit to complete projects on time, assure clients of quality delivery, while also demonstrating greater resilience to possible rejections or even greater scrutiny from clients.
– Kashish Bidhuri
ECONOX 