Understanding The Gig Economy’s Meaning and Its Challenges

The gig economy’s full form is a general workforce environment. The gig economy meaning refers to a labour market for short-term contracts or freelance employment. Classical and jazz musicians coined the term “gig” concerning living concerts and the temporary nature of their profession in 1915. World War II sparked the establishment of the first significant corporations marketing gig-type work in the 1940s, filling the shortfall for personnel. Since then, the gig economy has risen at an exponential rate.

Gig Economy Meaning and Functions

A gig (general) is short-term contract work; in contrast to a permanent job, it signifies a short-term contract or freelance work. The contract employee is paid once the work is completed.

There would be no traditional workforce in a gig economy, only temporary or part-time workers. Instead of a monthly salary, days’ wage, or hourly income, workers are paid for each unique gig they undertake, such as food delivery or a car excursion.

This strategy has proven extremely successful for companies such as Uber, Ola, and Deliveroo. Even software firms hire gig workers for project-based gigs.

Does Gig Economy Meaning Refer to A New Idea?

The “gig concept” is widespread in advanced countries such as the United States and Europe, where part-time workers are hired.

With the evolution of freelancing into the gig economy, the notion is also attracting many workers in India.

The gig economy is lucrative and offers diverse options, but it also leads to labour casualisation.

The gig economy includes various types of contingent job arrangements, such as the ones listed below:

• Freelancers
• Consultants
• professionals and independent contractors.
• Temps (temporary contract workers)
• Moonlighters
• Teams and networks that are outsourced

During the pandemic, one major shift was the transition from app-based drivers for Uber or Ola to a more diverse and highly skilled gig workforce. This included small and medium-sized practices (SMPs) worldwide that began to look at gig workers as they faced headcount freezes and a need to bridge resourcing the talent gaps.

The Problems of the Gig Economy and Freelancing 

The problems of the gig economy are something which is not very much talked about. There are several problems with the gig economy, making it a very ambiguous career option for future workers.

Some of the problems of the gig economy are as follows-

Reduced Social Security and Benefits in the Gig Economy

Traditional jobs frequently give employees numerous benefits and safeguards. From health benefits and retirement plans to unemployment insurance, the ability to drive a corporate car, and reimbursed fuel, there is something for everyone. The bad news is that independent employees don’t gain from this because they only do transitory jobs, and they must manage their retirement plan and health insurance and drive and fuel their cars.

Independent Workers Require a High Level of Discipline And Resilience

Setting your hours, where you work, and what you work on is exciting. Unless, of course, it isn’t. All of this independence necessitates a great deal of self-control. Discipline yourself not to be late, persuade clients that you’re the one, stick to agreed-upon dates, be on time, please clients to get positive feedback, and most of all, don’t mess up because it’ll be your whole duty. And not everyone is cut out for this kind of independence. Some people operate best with a little more structure and someone setting the rules.

To Survive, Businesses Must Adapt to the Sharing and Gig Economies

Companies that follow the ideas of the gig economy have challenged previously established firms, driving them to adapt and improve. For example, Airbnb is putting the hotel business on notice, and Uber and the taxi industry are all instances of how the gig economy changed the traditional professions. If these industries don’t reinvent themselves, they won’t be able to thrive.

Conclusion

The ability to control your time and schedule and prioritise your life over your job is empowering. If you can maintain the necessary discipline, you will be able to work full-time in the gig economy. It’s also excellent for the economy since it improves labour force participation, especially for flexible, part-time work.

The gig economy will continue to grow. National legal systems must adjust to this new trend and provide social protection to independent workers. You must consider your profile and expertise and if you would be a good fit for the gig economy.