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The importance of understanding post-Covid gig economy trends
The importance of understanding post-Covid gig economy trends

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The term “gig economy” is being used these days widely, and more so in the post-COVID world. It can be explained with a “Pay and Use” example, where independent workers exchange online services for money through digital platforms. The gig economy gets its name because each piece of work is equivalent to a single “gig.”

App-based platforms, which employ in bits and pieces — making deliveries, driving passengers, or cleaning homes — are at its foundation. Not every gig economy job requires the use of a technological platform. This article will look at the gig economy in the developed and developing countries both during the pre- and post-COVID-19 eras.

Gig Economy in the pre-COVID Developed World

Several people in the US and Canada could legally take up extra jobs to meet their financial obligations or fulfil their dreams. They worked on a contractual basis instead of a full-time basis and had the flexibility of choosing their workdays and hours. According to the Harvard Business Review in March-April 2018, roughly 150 million workers in Western Europe and North America have given up their stable organisational lives to become independent contractors. Technology has enabled many more people to take up flexible gigs, examples being companies like Airbnb, Uber, and Lyft.

Gig Economy in the pre-COVID Developing World

Workers in India and other developing nations primarily aim towards doing the same job throughout their lives. Unfortunately, certain companies in these countries have also gone to insert clauses in their contracts discouraging employees from working elsewhere simultaneously. Over the years, this has propagated a culture that makes it necessary for employees to strictly adhere to the fixed work days, hours, and schedules and the standards of their respective industries and specific companies.

Gig Economies in the Current post-COVID Era

The gig economy is steadily expanding and has an almost equal impact on labour dynamics, payroll, and the global economy. According to the ADP Research Institute, full-time gig workers in 2021 account for 24% of workers in 19 nations. To manage a large workforce, it is necessary to obtain a suitable ERP solution from a well-known company that provides Contract Workforce Management services.

For a period that saw the devastation caused by Coronavirus worldwide, the ‘Gig economy’ clearly came across as a breath of fresh air into many lives. It has given and continues to provide workers with a sense of flexibility, independence, and autonomy over their work lives. The fact that they are involved in building their empires rather than someone else's adds to the motivation and excitement.

Aspects of this new gig economy include:

  • Gig Culture - It is essential to incorporate a unique mindset and style to work within the gig economy. This can undoubtedly be seen on freelancing platforms such as Freelancer and Upwork. This mindset comprises openness, engagement, a sense of freedom, and accountability, enabling people to brand themselves and move fluidly from one project to another.
  • Work from Anywhere- Unconventional co-working spaces allow gig workers to bounce off ideas with other like-minded people, exchange business experiences, and network professionally.
  • Technology - This economy requires many more technical tools as compared to the conventional economy.

Technology and the Gig Economy

Remember, technology gave birth to the “gig economy,” and it is a technology that will see it through to maturity. Technology has enabled all stakeholders to gain more significant influence over their work by removing employers' monopoly over work schedules. Companies are beginning to regard the gig economy as a critical component of their personnel strategy. Take, for example, Instapage, a San Francisco-based company that saved $2.3 million by outsourcing work to Upwork.

Similarly, platforms were created to link people with others interested in their products or services. For example, vocalists and musicians can find opportunities to record vocals for paying clients through AirGigs. Fiverr has created a diverse freelance economy for anyone to offer nearly any service for a set rate.

The economy in the post-COVID-19 world

The need for gig workers has never been greater, with multiple waves of COVID-19 engulfing countries worldwide and organisations undertaking massive cost-cutting attempts to stay afloat. According to Mastercard, the current percentage of the gig economy is between 1-3%; however, by 2021, it is predicted to reach 15-20%, with a valuation of $450 billion.

COVID-19's unparalleled disruption is heightening the need for agility, adaptation, and change. However, the platform on digital economy and New Value Creation enables businesses to use technology to be more agile in the face of disruption and to develop new digitally enabled business models for a new standard – post-COVID, purpose-driven, long-term, and inclusive. Over the next decade, digitally-enabled platform business models are expected to generate 70% of unique value in the economy.

How Employers Should Prepare for the Expanding Gig Economy

It is essential for today’s employers to use their ‘human’ sides to understand and be compassionate towards their employees. They should be flexible in the adoption of new techniques and consider the following:

  • Employers must be prepared to give their employees flexible hours
  • Individuals must upgrade their skill-set
  • Companies must invest in people
  • Individuals must develop advanced interpersonal skills
  • Individuals and their employers should build resilience and adaptability as skills
  • Businesses can launch tailored learning journeys for closing critical knowledge gaps
  • Obtaining flexible and upgradable timesheet and billing software to handle employees and customers

Organisations must get a suitable service-centric ERP solution that can help them manage their contingent workforce.

Conclusion

While the threat emerging for the COVID-19 pandemic will be felt severely for the next few years, the global paradigm change triggered in company operations and the labour economy is set to stay for much longer. The more employers and potential employees brace themselves for technology, the better it will be for businesses.


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