DOES GIG ECONOMY AFFECT THE RECRUITING TOPOGRAPHY?

“If opportunity doesn’t knock, build a door.” ― Kurt Cobain

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?“Focus on being productive instead of busy.” ― Tim Ferriss

?#GigEconomy #Recruiting #FutureOfWork #Freelancers #HR #TalentAcquisition #FlexibleWork #WorkforceTrends

THE TERM GIG

The term, ‘gig’ was used way back in 1905 by?jazz musicians?to refer to various performances. However, in 1995, close to 10% of Americans chose to resort to alternate career options like on-call workers, contractors, and freelancers, who then, were referred to as, gig workers. Much later, in 2009, the term “gig economy” was coined by a renowned journalist?Tina Brown.

The Niti Aayog’s policy brief, titled, ‘India’s Blooming Gig and Economic Platform’?(released in June 2022), describes those who work for app-based platforms i.e., the gig or platform workers as, “a person who performs work or participates in a work arrangement, and earns from such activities outside of traditional employer-employee relationship”.

?NOT A NEW CONCEPT

The gig work often involved breaking a job down into smaller tasks, which were then completed by more than one person. Hence this was not a new concept and was seen more as a style/method of getting a particular work done. However, today a gig worker is synonymous to a freelancer, one who earns from any activity outside of traditional employer-employee relationship, be that in any field of work.

Gig workers are usually classified into two categories, i.e., platform workers and non-platform workers. When gig workers use online algorithmic matching platforms i.e., websites or apps like Amazon or Uber to connect with customers, they are known as platform workers. While, the workers who work outside of these platforms are referred to as non-platform workers, for instance, construction workers, day-job workers and non-technology based temporary workers.

?ARE GIG WORKERS RECOGNISED UNDER THE INDIAN LAW?

Gig workers who are engaged in part-time jobs and do not fall under the traditional work arrangement and are largely unregulated and unprotected by the existing laws. Gig workers, whose presence is predominant in tech-based platforms, are not entitled to security benefits like their on-roll counterparts. Additional challenges faced by gig workers include salary shortfall, lack of insurance, access to credit and income fluctuations, poor internet services, lack of job security etc. However, there are cases sub-judice before the Indian courts, which demand better social security benefits for gig workers. ??

According to UK-based FairWork Foundation, supported by the Oxford Intern, who published its 3rd report on the “Labour Standards on India’s Platform Economy”, wherein, it commended Flipkart’s 5 principles of fair gig work. Furthermore, despite there being a lacuna in law, Indian corporations such as Big Basket, Dunzo, Swiggy and Urban Company made a voluntary commitment in 2021 to ensure that all gig workers, on their platforms, earn at least the hourly local minimum wage after factoring in their work-related costs.

The Indian Government has also made endeavours by developing a web-based portal called e-SHRAM for creating a National Database of Unorganized Workers?for optimum realization of their employability and to extend the benefits of the social security schemes to gig and platform workers, among others.

The National Commission on Labour has recommended the Ministry of Labour and Employment, to introduce a single consolidate central labour laws, which, once enacted, will replace all the previous independent labour enactments. This proposed law has been introduced as the Code on Social Security, 2020 (Code).

Acknowledging the growing importance and contribution of the gig workers to our economy, the above-mentioned Code, recognizes gig workers and platform workers. Pursuant to the enactment of this Code, social security would be provided to all employees and workers, either in the organized, unorganized, or any other sector.

?PLATFORM & NON-PLATFORM WORK - A PREFERRED CHOICE

?CIEL HR Services, which surveyed more than 400 organisations pan India across sectors and more than 1200 white collar gig workers, mentions in its report that 38% of gig workers choose such jobs due to ‘flexibility’ in working on different projects. The report further states that “The allure of diverse assignments allows gig workers to continuously expand their skill set, gain valuable experience across various industries, and pursue their passion for diverse work opportunities,” The Economic Times relied on CIEL’s report to point out that, permanent jobs have seen a reduction by 5% in 2023 as compared to last year, while the number of gig workers has increased by 40%.

As per the Niti Aayog Policy brief, the Indian gig workforce is expected to expand to 23.5 million workers by the year 2029-30, which is nearly a 200% jump from the current 7.7 million.

?HARVARD’S TAKE ON THE GIG ECONOMY

The Gig mindset rests largely upon flexibility. Flexible companies can assemble teams quickly, draw on collective knowledge and find expertise inside and outside of the organization, communicate strategic messages to the workforce, and collect information from employees in the field in real time.

An article titled “What You Need to Thrive in the Gig Economy”, summed up a Harvard Business School Report and described a freelancer as, “Unshackled from managers and corporate norms, people can choose assignments that make the most of their talents and reflect their true interests. They feel ownership over what they produce and over their entire professional lives...The price of such freedom is a precariousness that seems not to subside over time.”

Greater flexibility is considered a boon, but it also includes unpredictable schedules and finances. So then how does one ensure the Gig model to succeed?

?The Harvard Report studied the habits of 65 gig economy workers and concluded, that, “despite the desire for flexibility that led many to leave “full-time” work, it takes structure and habit-building for gig workers to feel productive and efficient. The study pointed to four connections workers need to cultivate to thrive: to places, routines, purpose and people. These connections help them endure the emotional ups and downs of their work and gain energy and inspiration from their freedom.”

?Building these four connections allows independents to succeed and thrive in a way they wouldn’t in a normal office setting. The report reads, “People in the gig economy must...[find] a balance between predictability and possibility, between viability (the promise of continued work) and vitality (feeling present, authentic, and alive in one’s work)”.

?GIG HIRING - BOON OR A BANE?

The boon of a Gig economy for a worker is, that there is a flexible working schedule, as any job can now be the means to an earning, one can expect performance based higher earnings, availability of variety of gig platforms in different alcoves and opportunities with big companies are no more limited to a specific location. On the other hand, organizations are attracted to this model of work culture, as it affirms to cost reduction in hiring, recruitment, and interviews and gives an access to a wide range of talent through gig economy platforms.

?This model allows workers the flexibility to choose between part-time and full-time working options. Additionally, it guarantees professional and creative freedom, versatility, and personal fulfilment. Those who are capable of multitasking, may prefer to take on more than one job at a time to maintain an impressive career graph.?

?Companies benefit from the gig economy as they can shift their focal point on key operations. Independent service providers, can be hired on requirement basis, for services not regularly needed.?On-demand hiring, aids in cost reduction for the company, producing a more agile workforce. ?It has often been noticed, that gig workers are more efficient and productive as the output location and number of hours, they wish to log in, is a matter of choice for them which is laced with flexibility. A great work-life balance and a source of additional income, is what makes this model attractive to the modern workforce. The Gig style emerges as a win-win on most accounts and hence is most preferred prototype today.?

However, it is imperative to note that the number of platforms and the size of the gig economy have yet to be accurately quantified. Uncertainty about the size and scope of the gig economy, coupled with platforms’ diverse business models, do present challenges to developing adaptive and innovative regulatory solutions.

?THE GIG MODEL IS HERE TO STAY

High tech digital advents are altering the staffing and recruitment landscape in several ways. Application of variant technologies to improve efficiencies facilitating speed up time-to-market and the countless ways it helps to connect jobs and people with skills, is noteworthy. Large corporations having global presence have integrated into the gig economy with the aim to create talent pools which can be pumped in to service when there is demand.?Fortune 500 and mid-market companies are frequently outsourcing parts of their marketing, payroll, human resources and procurement functions using such platforms. Newer technologies are being integrated into the existing ones, namely, artificial intelligence, machine learning and automation being the more important ones.?Hence, as the Gig rests pre-dominantly upon technological advancement, it would not be wrong to say, that the scope for the Gig model is immense and not yet fully tapped into. This makes the gig seekers’ proposition much stronger and those with the right set of skills will command a premium in the hiring playground.

By Aparna Menon

For ? Metasearch Recruitment Services, 2023