Big vs Gig economy

This is going to be a short article based on points, much to the chagrin of strict academicians, as I have already broken their rules for article writing. This article is purely based on my learning from experiences over the last 30 years. Thanks to #Linkedin. for giving me the platform.

Why read this article?

If you are holding a core job and things are getting boring, the gig offers can be tempting, Should you try it or not? By trying will it dilute your current employment efforts? What will your boss say? Are gig economy job offers good enough? Trusting the future of Gig economy offers, can I kick my current job? Will I make more money? Would I eventually feel more fulfilled? more satisfied?  If these questions make some related sense to you read on.. else abort and move on!

Understanding, the subject in the headline or your fate!

Unlike media headlines which at times mislead or confuse us, this one "Big vs Gig economy" is simple and straight. Big economy is not just based on the size of a nation like the #United #States of #America, but the Big economy is also based on the size of Euro-Asian or other cap-democratic markets like #India. Therefore, Big economy refers to all the core sectors of all industries, agriculture, research, governmental and others, which hold permanent or long run secure employment for talent or man power. Gig economy, as a term that is doing rounds in media, viral or not does not matter, what it refers to is a growing or changing economy built on freelancing, part-time, contractual work that is replacing full time employment. Also Gig refers to Gigabyte wherein a skill-set or talent need not travel to finish the job, the job can be finished online. For example, one need not travel to USA but finish the job sitting in #Bangalore, now that's the start of a Gig economy where "'geography'[traveling] become history" a quote which I frequently pinch from my student Prashant who now belongs to IBM. This was said nearly 15 years ago and when he said this phrase of "geo. became hist. due to tech." the term "Gig" was not popular. But surely I think, all B-school think-tanks were anticipating the Big changes due to technological upsurges.

On one hand, an employment in the Big economy means you are almost as good as retired or well settled down. Kids education, lifestyles, job security and somewhat slow growth if not stagnant lazy job pleasures of travel, easy meetings with occasional problem events etc., etc., Obviously you must be in the managerial or operational skill-set job bands and you must be either in core banking, Oil, gas and natural minerals, transportation, Telecom., research/education, Federal set-ups and or the other similar like industries where things are quite well defined and moving well for decades. In #BCG terminology you are employed with a Star or a cash cow. Life can be monotonous even with club activities or you can be holding exciting administrative or business expansion assignments. Whatever be the case your revenue graphs are well structured and well defined. You have a branded career, your future is stable unless disturbed by any force majeure.

On the other hand, working in the Gig economy means handling uncertainty, more competition, sometimes no payment but you have your full freedom and you are your own boss. All cannot survive in a gig economy for long, unless they have certain financial cushions. I am going to use the term Freelancers et al to denote all categories of workers in the Gig economy. So, let us go to the thoughts points.

1.    A Gig economy cannot exist without its core i.e. the Big economy holds the gig. The super set always holds or controls its subsets. It a subset goes rogue or functions like a virus, consequences are obvious which is, quarantine, clean or abort. So keep a watch on the government or controllers of the countries where you hold interests in order to avoid unpleasant surprises.

2.    There are no generalized or specific evidences to state that the Gig economic performances are mutually beneficially. The variances are high. Freelancers et al have survived, are they thriving for long enough? Answer is no.

3.    Proposals to pull freelancers et al into the folds of insurance or a social security net has not been effective. For example, Uber or Ola drivers lament most of the time. They try to make the best use of a bad bargain with the job providers. For now on, looking 15 years down the employment line, when #AI #ML systems coupled with intelligent #GPRS systems take over transportation and driverless vehicles become most cost effective, then obliviously drivers or chauffeurs will not be needed. Alright? now, add another 5 years for hair stylists or massage specialist! Gig or Big that's the future.

4.    Gig economy factors operating in all the force fields will certainly influence the big economy in terms of speed, accuracy, cost reduction and at events of touch-point failures, will eventually lead to consumer dissatisfaction. Wherein, this dissatisfaction continues to happen in two categories, one where manual labor is involved and two where AI or smart systems [google assistant] are involved. Consumer dissatisfaction is inevitable till a threshold or equilibrium is reached. Due to quality gaps, and with all the confusions going around this 95% overall consumer satisfaction is not going to happen using fuzzy or gigs logic. The need for a more higher intelligence is evident.   

5.    The loyalty and commitment quotient of Freelancers in terms of long term association and product delivery to a known target market is practically nil. #Uber or #fiverr associate would not really bother much about recognizing a frequent passenger or customer respectively, whereas a New York bus driver or a subway transit NYPD cop, would most certainly recognize and exchange a few pleasantries with frequent travelers. The five dollar operators will find excuses to greet, besides there is no human touch when machines provide touch-points. A touch-point is any resource or cue in any form that is well programmed and that which leads to customer satisfaction.

6.    Freelancers et al almost go unaccountable due to different payment options, leading to tax evasion. Although beneficial to job providers in terms of cutting down fringe and other costs, as they do have to compensate anything much towards the social security nets such as EPF, medical etc., the question arises what sort of employability sets we are creating in future?

7.    When routine tasks get automated and deep learning leads to maturity of data sciences, the writing on the wall is obvious that most of the freelancers even those dealing with coding or routine tasks will replaced by AI systems. Exceptions belong only to certain Freelancers et al who are holding credence qualities or highly specialized skill sets that cannot be automated. For example in ophthalmology robots perform cataract surgery better than human doctors, so this human skill gets replaced and visiting freelance surgeons can take a walk. Whereas, highly specialized Doctors dealing with rare or complex cases will continue to hold value as visiting specialists.

To conclude

The above 7 points will give you all indications on where we are being lead towards and for what? Now, my word of caution to all of you is that, do not be mislead by reports from various quarters as to the comfort zone in the gig economy and make bold plans to quit your jobs. One may get impressed by seeing the percentages of people opting towards self employment as freelancers et al. New business opportunities, gatherings, Media reports, news articles [including this one of mine, don't trust what I am writing, I ask you to check out the facts] would show examples or stuff like...30% of Freelancers are very happy, 12% doubled their revenues in this sector, that industry etc., etc., only a negligible 5% are suffering and that to in the insurance industry etc., #Think, why should I buy this information? for what? Besides, even if you or I accept the given news, we both know that all these eco-employment related factors are only temporary, considering the innovation facts all over the world which we have witnessed and experienced as changes in products, lifestyles, savings, jobs etc., in the last 10 - 25 years. Therefore, wherever you are, whatever be the economy, plan your savings, invest or purchase on something only if you have ten times the said amount to dispose. Plan and execute on developing your skill-sets or acquire new ones; Ones that cannot be replaced by AI machines. This point applies to the Millennial and their children. Above all look for changes in the big economy, that's where the catch lies!. Those bound to retire in the next 10 to 15 years just don't bother, relax and go with the flow you are not going to be affected much by the changes in the gigs or bigs. Cheers!