CERTIFICATE

This is to certify that __________________ of class XII-

of Delhi Public School has completed this project
under my guidance.

She has taken keen interest and shown utmost sincerity

throughout and has successfully completed this
project in Economics up to my satisfaction.

I certify that this project is in accordance with the

guidance issued by CBSE.
 INTRODUCTION
A gig economy, in simple words, is an environment in which
organizations contract with independent workers for temporary,
short-term engagements.
The gig economy currently more prevalent in US, Europe and
India, is expected to bring transformational changes to
traditional HR practices around the world, where gig and
traditional economy will thrive together. India with the uprising
gig economy has potential to become the top freelancing and
crowd sourcing hub in the Asia region, even globally,
says Helma Kusuma, Freelancer.com Country Manager for
Indonesia, Malaysia, India, Pakistan and Bangladesh.
A dramatic workforce transformation is under way, and is
changing the way companies find and deploy talent. Not long
ago many were tempted to find lifelong careers that seemingly
gave people satisfaction in their professional life. Today, tables
have turned and growing number of people believe that an
ideal job doesn’t stand in the way of being the boss of your own
time / personal life goals / self-growth.
This trend has eventually evolved to the gig economy – where
temporary or fixed contract options are valued more than
permanent ones. Conventional recruiting methods no longer
work in the ‘gig economy’ and traditional engagement
strategies cut no ice with a freelance work.
 Rise of the Gig Economy

‘Uberisation’ of the workforce is happening in India too, with

more and more people opting out of the daily grind and
choosing to be ‘fluid’. The number of workers being hired as
freelancers or contract workers has risen from 20 per cent to 25
per cent in the contingent workforce in the past two years. This
points to the rise of the Gig or Flex Economy. More are opting
for a flexible style of work, one that lets them remain in control
of their time and allows them to work when and how they want.
In 2015, nearly a third of workers globally consider themselves
freelancers. The rising numbers now comprise 34% of the
workforce in the Asia-Pacific, 31% in the US, and 27% in
Europe. These freelancers are independent by choice and
chose to be part of gig economy driven by the freedom and
flexibility the work-style affords. They are highly educated and
skilled —70% of freelancers in the APAC region possess a
professional or technical skill-set. 35% Of the total workforce
comprising non-employee workers, include temps, freelancers
and contractors. As a result, 95 percent of businesses now
view this new workforce as a key element to developing and
running a successful business, which means big changes for
hiring trends in the coming years.

Startups powering the gig economy hire talent across

technology, marketing, finance and HR on freelance or need-
basis. IT companies are opening roles for moonlighters,
freelance consultants on non-mission critical parts of projects or
as part of larger development efforts on one-off basis. The
changing needs of today’s workers, the war for talent and the
globalization of the workforce are just a few reasons that
today’s technology is evolving so rapidly. All of these forces are
driving workforce management to the top of the business
agenda, especially as talent becomes a true differentiator for
organizations.
The biggest sources that companies use to find this new class
of talent includes online labor marketplaces, freelancer
networks and social media. By understanding where this talent
exists, how it can be engaged, and the general parameters of
how it should be managed, companies will be able to derive
additional value from the wealth of skillsets available in the on-
demand talent marketplace.
The gig economy can be the answer to talent supply chain
challenges faced by professional or technology sectors. While
critical roles would still be in realm of regular employment,
freelancers can reduce the burden on the supply chain,
increase operational efficiencies and reduce project costs.
Attracting and retaining top talent has been a consistent
challenge for global pharma companies and this could be the
answer to acute talent shortage in the pharmaceuticals sector,
particularly bio-pharma.
The advantages are aplenty for the workforce too, and not just
the employers, as they can pick and choose the gigs they want
to work on. This means their skills will be current while retaining
flexibility and autonomy, and avoiding the occupational hazards
of a regular job.
 The Factors Behind a Gig Economy

America is well on its way to establishing a gig economy, and estimates

show as much as a third of the working population is already in some gig
capacity. Experts expect this working number to rise, as these types of
positions facilitate independent contracting work, with many of them not
requiring a freelancer to come into an office. Gig workers are much more
likely to be part-time workers and to work from home. 1

Employers also have a wider range of applicants to choose

from because they don't have to hire someone based on their proximity.
Additionally, computers have developed to the point that they can either
take the place of the jobs people previously had or allow people to work
just as efficiently from home as they could in person.

 
In the modern digital world, it's becoming increasingly common for
people to work remotely or from home. This trend accelerated during the
COVID-19 pandemic.

Economic reasons also factor into the development of a gig economy.

Employers who cannot afford to hire full-time employees to do all the
work that needs to be done will often hire part-time or temporary
employees to take care of busier times or specific projects.

On the employee's side of the equation, people often find they need to
move or take multiple positions to afford the lifestyle they want. It's also
common to change careers many times throughout a lifetime, so the gig
economy can be viewed as a reflection of this occurring on a large scale.

During the coronavirus pandemic of 2020, the gig economy has

experienced significant increases as gig workers have delivered
necessities to home-bound consumers, and those whose jobs have
been eliminated have turned to part-time and contract work for income.
Employers will need to plan for changes to the world of work, including
the gig economy, when the pandemic has ended.
 Gig Economy: The Future Of Workforce.

Among sectors that were immensely impacted by the pandemic were the
platform economy and the on-demand gig workers. In India, a large
section of its urban population is currently engaged with the platform
economy in one way or the other.

The gig economy comprises of people who work on freelance or

contract basis. These individuals are paid per job, or ‘gig’, as opposed to
receiving a regular salaried employee. In the absence of proper
government data available on gig workers in India, a report surfaced in
January 2019, indicating high unemployment of the country. However,
NITI Aayog have dismissed the findings stating that platform-based
companies had alone generated more than 2 million jobs.

It is estimated that the number of service providers involved with various

platforms has increased from 8.5 million in 2016 to 11.7 million in 2017
and 15 million in 2018.
During the pandemic, the platform economy firms such as Uber, Ola
Zomato, Swiggy, Flipkart, Airbnb supported the frontline workers in
various ways. Some of these firms had to do a huge lay-off during the
pandemic but have stood the times. Recognising the need of the hour, in
September 2020, the Indian Parliament has passed a new labour code
— “The Code on Social Security 2020”.

This code absorbs the existing 29 labour laws, to acknowledge the

platform and gig workers as new occupational categories in the country.
On 15 November, the Ministry of Labour and Employment released the
draft rules for invoking the Code on Social Security passed by the
parliament in September. Gig companies will now be asked to make a
contribution towards social security funds set up for platform workers.
The code will also have enabling provisions to allow self-employed
workers to make voluntary contribution towards the Employees’
Provident Fund (EPF) schemes. Platform workers are also eligible for
certain benefits like maternity leaves, life and disability cover, old
age protection, provident fund, employment injury benefits, and
more.

Gig workers are adopted and rewarded based on their skill to deliver
which motivates them to deliver with creative thinking and be self-reliant.
The future of gig work holds great potential because it tends to be more
meaningful and rewarding in more than just the monetary aspect.
Additionally, the biggest advantage of gig work lies in its integration with
technology because, the future of India’s start-ups and its gig economy
lies in digital innovations. The government too has been endeavouring to
democratise digital platforms across sectors.

A major part of the economy, gig aspired people are now exploring
various needs of the economy and turning to professions in beauty,
fitness, plumbing, electrical repairs, etc. This business model allows for
the service providers to communicate with the end-users directly through
the app according to their terms and conditions. This opens up a world of
opportunities for the freelance workforce

To conclude, the gig economy has certainly led to the transformation of

India’s work culture, with enhanced flexibility and autonomy, overriding
the traditional relationship shared between an employer and employee.
In a developing country like India, the potential advantages of the gig
economy are going to be numerous. Particularly for women, it portends
to be an important step towards professional and financial freedom.
Workplaces are changing and so is the way people function at
workplaces. It won’t be long before the gig economy becomes the new
normal and working full-time will become a rarity.
GIG WORKERS ARE FUNDAMENTALLY DIFFERENT FROM
NON-GIG WORKERS

A 'regular job' is often associated with working for corporations or in

government offices with fixed work hours, paid time-off and a steady
or predictable income that gets paid out at the end of every month.
The day-to-day lives of gig workers seldom fit into such definitions,
differing from non-gig workers on four key aspects: demographic
profile, work and earning patterns, job triggers (motivations and
reasons for taking-up gig work), and job drivers (monetary and non-
monetary benefits of gig work). With limited working hours, monthly
incomes also vary significantly; 78 percent of gig workers earn less
than INR 20,000 a month, whereas only about 50 percent of non-gig
workers in similar profiles of work earn in the same range.

Consequently, gig workers are more likely to be secondary

contributors to household income, with 30 percent workers
contributing less than 50 percent of household income, as compared
to only 10 percent in the non-gig workers’ segment. • Demographic
profile: Gig workers are relatively younger compared to non-gig
workers – nearly one in four gig workers belong to the 18-23 years
age bracket versus one in six among non-gig workers. Considering
that there are no fixed eight-hour commitments in gig work, many
students pick up gig jobs alongside their studies, resulting in a skew
towards younger age groups. Likewise, gig work tends to be more
gender inclusive1 since no fixed time commitments are required,
providing flexibility to women to pick up gig work without
compromising on their household responsibilities.

Educational qualification is another differentiating profile variable

between the two worker groups, with gig workers being relatively less
educated2 – nearly one in three gig workers have not completed
matriculation (10th standard), whereas the corresponding number
among non-gig workers is only 20 percent. • Work and earning
patterns: Gig workers typically work for limited hours in a day, with
61 percent of gig workers working less than eight hours a day, versus
only 11 percent of non-gig workers.

For instance, a gig worker in Mumbai mentioned that he used to work

as a technician for 10 hours a day, earning INR 15,000 a month, and
at the end of the month his boss would cut his pay for late arrivals and
holidays taken. He then came across an Urban Company
advertisement where they promised income in excess of INR 20,000,
which was the primary driver for him to switch his job. He now
makes INR 20,000 to 25,000 monthly, along with the ability to work
as per his convenience.

In comparison, non-gig workers are primarily driven by job

stability, prospect of regular salary increments, as well as the
softer aspects related to learning, personality development and
social validation.
Our qualitative study (carried out prior to the lockdown)
identified non-monetary benefits such as medical cover and
life insurance that gig workers seek. However, findings from
our quantitative survey demonstrated that non-monetary
benefits play a limited role for gig workers.
 Pros of Gig Economy

Cost Saving
Economic reasons are the major reason for the development of the gig
economy. Workers don’t have to come to the workplace. It saves huge
infrastructure costs for the company. According to a recent report by
ET, outside Mumbai’s central business districts, a barebones office
space that can seat 500 people can cost Rs 10 crore in annual rent,
which is Rs 2 lakh per employee. And when employees come to the
office for work, the cost of staff transportation, air-conditioning and
ventilation, furnishing and cafeteria also increases. Gig economy can
get rid of all. Hence, you can understand why 55 million people in the
U.S. are gig workers. Companies want to save money.

Cheap Human Resources

Well, if you have been freelancing, you must have gone
through this. There is always someone who is ready to
work cheaper. The gig economy opens the door of
cheap human resources.
Cons of Gig Economy
Disruption of Work-life Balance
Well, most freelancers agree to this. Freelancing disrupts the work-life
balance. You are your own boss. And when no one is watching you,
complacency is obvious unless you are highly self-disciplined. Hence, the
gig economy results in disrupted work-life balance, physical stress,
emotional stress and lack of professional growth.

Unsteady Work Load

Some days you get so much work that you can’t even go out, some days
there is nothing to do. It is also one of the major drawbacks of the gig
economy. Most freelancers are not sure whether they will get the next
assignment.

Continuously Seeking For Resources

For companies, the gig economy is a big headache. Because, the very
definition of the gig economy is short term employment. Hence, the
recruitment process is an everlasting love affair. Above all, it raises big
concerns about employee retention. Hence, a long-lasting relationship
cannot be formed between employer and employee which is not good for
both.

So whether the gig economy is good or bad, the debate will go for long.
And I think till last people will have divided opinions on the gig economy.
 3 strategies companies should use to seize
the gig economy
1. Overturn traditional job descriptions into skills-based categorizations:
Currently, most organizations leveraging the gig economy to scale-
up their business are small – to medium sized enterprises. Larger
corporations, have been slow to adapt to this trend, are still
figuring out how their recruitment strategy and compliance
practices can accommodate short-term contractors within their
existing structure, especially in terms of how gig workers can fit
their corporate culture and working style.
With the rise of Robotic Process Automation (RPA), data
analytics and routine tasks are often automated to achieve
higher efficiency and accuracy, allowing staff to engage in
skills-based, value-added tasks. Hence, instead of holding
up to the traditional categorization of job descriptions,
corporations can creatively divide work into skills-based
tasks, so as to simplify processes of briefings, handover
processes and management.

2. Revamp employee policy assessments and evaluations: Corporations

should evaluate existing internal policies and candidate

assessment processes to cater to permanent employees. As
companies look towards engaging gig workers, it is essential for
talent acquisition teams to revamp their approach to assessment
processes and job requirements, as well as staff benefits and
policies. This is equally necessary for jobs which require gig
workers to work on-site and off-site. An effective evaluation
process is required to ensure consistent and quality work, where
customized assessment procedures will need to be developed with
active participation of the relevant line manager.
3. Effectively communicate employer brand: Communicating an authentic
corporate brand is needed for traditional talent acquisition
processes, even more important in a gig economy, where the
 foundation is built upon trust. Skeptics perceive that gig economy’s
impact on the workforce undermines a corporation’s dedication to
fair treatment of employees; it is vital for corporations to
communicate their brand in a manner that is true and personal to
permanent employees, potential candidates or contractual staff. By
focusing on the company culture and its people, companies will
bring a positive experience to existing and potential employees
alike.
To avoid disconnection, corporations must also bring
brands to life, ensuring the corporation is relatable by
giving it a distinct voice and personality. Many companies
are already doing this on digital platforms, such as user-
centric mobile-friendly career sites, mobile-enabled
application and assessment tools, usage of video content
and employee video blogs. Such practices enhance
employer brand and communicate brand culture. All in all,
a corporation will need to embrace flexibility to address
the ever changing societal evolution.
The gig economy is cutting across generations, is no longer
restricted to the services sector and raking in high value gigs. It
has arrived and is here to stay.