Rise of the GIG economy

One of the most trending and debatable topics of this session is about independent or freelance workers. Also known as the GIG Economy.

What is GIG Economy?

In simple terms, GIG Economy comes into practice when companies hire independent or freelance workers for their work. It promotes temporary or flexible jobs, unlike the traditional one, which demands full-time employees.

GIG economy mainly depends on online platforms, but those who are not comfortable with the internet or any technical services cannot enjoy its benefit. Freelancers or contractual workers are free from formal employment; hence they are responsible for paying their service and income taxes.

How is GIG Economy better than the traditional Economy?

It offers time and workspace flexibility– Hiring on a contractual basis gives greater flexibility to the company because they can hire workers per requirement. In the same manner, employees also have the advantage of working at flexible hours.

It is a cost-effective economic technique- Companies hire employees on a contractual and temporary basis because it is an effective cost-cutting method. They open positions as per the requirement set by the clients.

GIG Economy method is the best for time management- A person can offers service as per their need and availability. Freelancers and contractual workers are independent to work for more than one client at a time to earn more money. Working under GIG Economy, one can always take a step towards up-skilling themselves.

It allows the business to save resources- Shifting the work on online platforms will save many of the company’s resources such as office space, training activities, rewards and benefits.

It opens up opportunities- Employees get global exposure in various aspects such as clients they deal with, geographical area they work for and many more.

At what rate is GIG Economy rising in our country and worldwide?

As per reports, 50% of the companies in the United States are hiring employees on a contractual basis and more than 55 million people in the country work as independent workers. The requirement and demand for temporary employees have increased in the past few years. As per their estimation, 49% of the entire population will shift to freelancing.

Even India is contributing to the community of freelancers. Almost 20 million people from the entire workforce are working as freelancers. Their annual income is comparatively better than those working as permanent employees. In other words, there is a rapid growth in the GIG Economy of the country.

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