Indeed post-globalization, the world has changed a lot & it is no more what it was in many ways specially in the way the recruitment industry operates. Today it is a competitive market, new workplace hierarchies, new ways of getting work done are some of the changes that has happened with organizations.
The most trending are “Gig Economy” and “Contract Workforce”.
Contract workers are exceptionally skilled and tasked with doing niche jobs. The terms of the contract are dependent upon the quality of work and the job is considered to be temporary or part-time. The gig economy is flexible, involving businesses and clients operating over a digital ecosystem. RentoMojo, Zomato, Swiggy, Ola, etc. are some of the examples of this new trend in the economy.
Due to the rapid developments in technology &with the arrival of the digital age, the new economies created a whopping $204 billion turnover from worldwide business in 2018. Consulting giant McKinsey indicates that digital platforms for manpower management could increase US GDP by 2.5% as well as its full-time equivalent employment by 2.6 % by 2025.
India ranks as the 5th largest economy when it comes to Flexi-staffing after the US, China, Brazil, and Japan. In fact, Haryana, Madhya Pradesh, Andhra Pradesh, Gujarat, and Telangana make the bulk of the gig economy in terms of growth for Flexi-workers. Digital platforms have triggered this change & act as a catalyst for job creation with the power to attract top talent and job providers and such platforms are increasingly replacing traditional job-hunting channels.
The current millennial generation yearns for a life full of freedom & they want loads of it be it in personal or professional life. This mood is what is best served by the gig economy & we at avenue growth are aligned towards a flexible work culture. Our Growth Specialists are skilled & get the opportunity to work from anywhere & on projects of their liking.
At Avenue Growth, we allow task ownership, convenience, and flexibility. Moreover, based on job aptitude and preferences, one can determine the quantity and nature of projects one works on. Plus the sum of one’s earnings, and thus, the work-life balance. For example– one may want to take up 4 projects in a single month to make the most of earnings, but only 2 in the subsequent month. Similarly, one has a choice to opt-out from a task, if one feels it is not doing justice to one’s job aspirations, etc– such flexibility one usually doesn’t get in a traditional job.
Business owners & stakeholders find it cost-effective to adopt, an on-demand workforce to perform specific tasks by doing away with legacy costs. As traditional ways of recruitment involves sourcing &training talent, along with compliance costs that adds up as overheads, while recruiting regular employees.
With an uptrend in demand for services requiring to perform explicit tasks as per industry needs, it is now flexible and affordable to source talent skilled in such services. For example– a company can hire a marketing consultant to rebrand the company as a one-time activity instead of having a permanent marketing team.
Thus, a gig economy offers a synergetic relationship where both the facility seeker (client) and the service provider (business owner) have equal choice to look for preferences that cater to their specific needs.
Developed countries such as the United States were the first ones to tune into the gig economy, due to better prospects of digitization, economic progress, and disposable income. Such economic aspects are also responsible for top global companies,taking shape in the US such as Uber, Airbnb, and Upwork. Thus, the US is at present a pioneer when it comes to the global gig economy and India too is catching up fast in the gig space.
With the digital wave seeping across business sectors & advances in human assets, emerging economies like India will fast forward into the global gig economy at an accelerating rate.
With the US already reaping the benefits of gig economy, India can learn some lessons from the U.S model & carve out its own niche to promote the potential of gig-based service sectors.
a)Service Offerings-App Based
Digital Marketplaces are showing many tractions for demand-driven service providers positioned for niche areas such as grooming, beauty &fitness, civil works, etc. and makes such services available to consumers on a temporary basis as per requirements. This business model enables the service providers, to connect with the end users directly through the app as per their terms and conditions. It also offers value-added support services. Thus, to hire someone for a task to be performed, the consumer can simply use a tech-based platform (app).
With the platform as a service integrator tool between the two parties, there is a guarantee of receiving the service based on the conditions & terms of service.
b) Service Inventory Platform is a service delivery platform that provides professional services, that is in demand in everyday life, and which can then be matched with the services being offered. Basically, it is a platform fulfilling the demand and supply of services in a gig economy.
c) Asset/ Service membership is an asset subscription business model that appoints gig workers, to cater to specific services such as travel services, accommodation, and delivery. It is what has given rise to the term “Shared economy for assets and services”.
It allows for low-cost asset sharing instead of asset ownership. An affordable standard of living is what the Gig economy offers everyone. Eg: Rentomojo &Furlenco
Thus the gig economy is part of a tectonic shift in work culture and business ecosystem brought about by technology. Organizations will have to adapt to change.
Also due to changing global factors, they will be forced to become more flexible, agile, and streamlined. Having a huge workforce of permanent, full-time employees will make this increasingly difficult is what seems to be the common consensus among industry experts.