Gone are the days when a permanent job was the ultimate destination for the workforce. The workplace is changing, and so is the workforce.
Today’s workforce consists of innovative minds and creative millennials who look forward to the agile, more flexible method of working. Thus, there is a rise in short-term or freelance jobs, also known as the gig economy.
According to a report released by EY, the gig economy in India is prominent as it offers 24% to the online workforce of the labour market. The Indian market offers employment to multimedia professionals, software developers, marketing professionals, sales professionals, data entry operators, and writers. The study also noted that this ‘gig economy’ is expected to grow in India in the following years.
While millennials are drawn to the gig economy because of work-life balance, students and the older generations are drawn to it because of a need for extra income.
The Indian Staffing Association released data on flexi staffing, which says that the Indian industry has helped in the mobilising of more than 1.14 lakh employments in 2018. This number was achieved in various sectors, including BFSI, logistics, retail, construction, ITES, e-commerce, etc.
If you also wish to explore how the gig economy works, read on.
Gig Economy is Here to Stay
Although many believe that the gig economy is yet another upward trend of the industry, which will die soon, experts say it is here to stay.
Data released by ISF states that the flexi-staffing workforce has increased from 2.1 million in the year 2015 to 3.3 million in the year 2018.
Here are the benefits related to short-term workers for businesses:
Sudden workforce demands or short-term demands can be easily fulfilled with gig workers. With clients becoming more inclined towards real-time services and high-quality support, delaying work is rather risky. The gig economy offers flexibility to instantly hire contract workers for the increased demand and pay for the services acquired.
Additionally, many businesses have seasonal or short-term requirements which arise when the market conditions change. However, it is not possible to hire a lot of employees to fulfil this sudden increased demand. The short-term workers offer a cost-effective, flexible route to satisfy this rise in workforce demand.
Many businesses utilise short-term workers in order to save a large sum of funds. This is because managing and maintaining contract workers is not necessary. When you hire someone on a project basis, they are there to fulfil their responsibilities and then, they leave. You don’t have to ensure training, growth, increments, rewards, and recognition. The added cost of managing these is completely eliminated, which is why short-term workers or contract workers are cost-effective.
Low Onboarding Requirements
When hiring a full-time employee, the employer is expected to spend a considerable amount of time on onboarding activities. This is continued until the employee is familiar with the work environment and work structure. You can save all this time with gig workers, contractors, or freelancers.
The Growth of Gig Economy
The gig economy is not only impacting the workforce, but it is also influencing the employer-employee relationship. Earlier, it was common for employers to burden the existing workforce and increase their workload as the client requirements increase. However, with the emergence of short-term workers and contract workers, it is easier for the employer to hire someone on contract to fulfil immediate demands. This reduces the burden on full-time employees and improves employer relations with both part-time and full-time workers.
If you also wish to join the gig economy bandwagon, here’s an opportunity.
Talent on Lease is a talent platform that connects bench employees with short-term contracts available with their clients. Right skills available at right cost and within the right time-frame.