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In 1194, Maurice de Bracy, the enemy of the English crown, was locked in combat with a mysterious black knight. Suddenly, the Black Knight gains the upper hand. He whispers his true identity in De Bracy’s ear: King Richard the Lionheart of England. De Bracy yield. Later, De Bracy offered to let King Richard use his army of “Free Lances,” mercenary soldiers who were free to use their lenses in service of whoever paid the most. That plays out in Sir Walter Scott’s 1819 novel, “Ivanhoe.” Scott didn’t coin the term, but this use probably stuck and evolved to describe someone who works independently of any single company that Independence seems to make people happy.
According to a 2016 survey of freelancers in six nations, 70% of those who freelance by choice were happier than persons in typical professions, particularly when it came to freedom and flexibility in terms of where and when they worked. In a survey done in the United States, half of freelancers stated that no amount of money would persuade them to return to traditional employment. Before we begin to grasp the Gig Economy, let us first define the term “Gig.”
The term “Gig” refers to an economic activity in which temporary or freelance workers are hired to execute jobs, particularly in the service sector. Let’s define the Gig economy.
What is the “Gig Economy”?
A “Gig Economy” refers to a temporary contractual job or short-term contract of freelance labour that a person may accept on a project-by-project basis, with payment made once the assignment is accomplished. The name “Gig Economy” refers to how each piece of work is analogous to an individual gig. It is the market that connects service suppliers and consumers on a gig basis, i.e., work or assignment. Individuals frequently operate as independent contractors, freelancers, or part-time employees.
These occupations are often made available through online platforms or mobile apps that connect workers with clients or employers. Furthermore, the gig economy provides opportunities for people to earn additional or alternative money. Because labour is job-specific, individuals can work on their schedules with many contractors, allowing them to determine their daily work hours. As a result, women’s participation in the hiring process has increased significantly.
Gig economy jobs include cab services, food deliveries, goods and couriers, cleaners, web developers, creative designers, and so on. A gig can be found at any level of an organization, from low- to high-skilled individuals, part-time to full-time labour, and across a wide variety of salary levels. Small tasks are assigned to gig workers, regardless of the industry in which they work, and they must perform them to be compensated.
There are two types of Gigs, that is:
- Service-Based Gig
- Knowledge-Based Gig
Difference between Service-Based and Knowledge-Based Gig
Service-based gigs include low- to semi-skilled workers, such as delivery agents, as well as those who provide services through work-on-demand platforms, such as plumbers, carpenters, taxi drivers, and so on.
Consultants, developers, designers, and data scientists are examples of semi- to high-skilled workers in the knowledge-based gig.
Characteristics of Gig Economy:
- Variation in a task: The assignment could range from delivering a specific item to riding someone to their destination.
- Flexible working hours: Workers can pick when, where, and how much they wish to work.
- Two parties: It consists of two parties: a service seeker, also known as a consumer, who needs a certain activity, and a service provider or gig worker who is performing the task for pay.
- Project-based: Jobs in the gig economy are often temporary or project-based, allowing workers to move between different gigs and clients.
- Digital platform: Many gig workers find opportunities through online platforms or apps that connect them with potential employers or clients. Example: Uber, Lift, Upwork, and Task Rebit.
- Formal Contract: Gig workers sign a contract with on-demand enterprises to provide services to the companies’ consumers or clients. The prospective client seeks the services through a website or application that allows them to search for gig workers.
- Compensation: Gig workers are compensated once the allocated job project or activity is done.
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Components of the Gig Economy
The gig economy comprises three main components:
- Gig Workers
- Clients
- On-demand Company
Gig Workers:
These are independent workers’ salaries based on the task for the job. Gig workers include part-time workers, self-employed people, freelancers, independent contractors, etc.
Clients:
These are the individuals who need specific services, as, for example, the food to be delivered.
On-demand Company
These are the companies that link gig workers and consumers via a website or app. Uber, Ola, Zomato, Swiggy, and Airbnb are some popular examples of such companies. An on-demand organization serves as a mediator between the worker and the consumer, who pays them in the end. As a result, it enables gig workers to find rapid and temporary employment.
Reasons for the Rise in the Gig Economy:
- With the advent of the digital age, people may now work from any location and at any time.
- Short-term contracts allow the company to avoid long-term responsibilities such as gratuity and pension.
- Technological advancements have lowered the amount of human effort required.
- A dynamic business climate often prompts the corporation to hire temporary workers.
- Saves training time while increasing the organization’s operational efficiency.
- Workers have the freedom to work at their own pace because there are no predetermined hours or employment restrictions.
