Advantages And Disadvantages Of Gig Economy

We have all heard the term ‘gig economy’ frequently in the last two to three years. The gig economy has also has parallelly given rise to the platform economy and sharing economy, which are terms that are almost similar but have a thin line of difference amongst them. In this article, we shall uncover what the gig economy exactly means and the advantages and disadvantages it brings to the different actors of our society. If you are a brand or a business owner looking to avail any services for your business, visit Taskmo and speak to our experts today.

What is the Gig Economy?

So, what exactly is the gig economy? Gig economy is an umbrella term that encompasses individuals who are performing part-time jobs, temporary jobs, freelancers, independent contractors and others who do not fall under the purview of full-time jobs, i.e. a 9 to 5 job.

However, there is no particular pre defined definition for the gig economy given by an eminent thinker, an economist or even any accredited association. Since the gig economy is still in its nascent stage, there are quite a few crude definitions that help one to understand the functioning of the gig economy. Just like there are two sides of the coin, in the same way the gig economy has its own set of advantages and disadvantages, let’s take a look at them individually.

Advantages of Gig Economy

The major advantages of the gig economy are as follows;

• Increased Profits

One of the major advantages of the gig economy is that it brought about a higher amount of profits to the businesses. Since the nature of the gig economy itself involves individuals who work based on the need of the task at hand, it brings added benefits to the employers of brands and businesses. It has also made it easier for brands to easily hire workers depending on the time frame of the task and complete the work with ease. The gig economy has also made it easier for businesses, i.e. the employers to hire individuals with specialised skills based on the need of the project. This has helped businesses to cut down selection, training and hiring costs to a huge extent and saved a lot of time for recruiters. On the other hand, when employers hire gig workers they also save a great deal of money on the benefits which are given to a full-time employee.

• Greater Deal of Flexibility

As much as there are benefits of employers in the gig economy, the gig workers have an equal amount of benefits as well. As a gig worker, you have a great deal of flexibility when you take up a gig job. Contrary to the nine to five jobs, the gig economy lets gig workers pick up a gig of their choice and work flexibility. You can pick up a job in the industry of your choice and work around your personal schedule comfortably. At times, you can also pick up multiple gigs simultaneously and earn a great sum of money.

• Side Hustle Platform

In the past few years, the gig economy has turned out to be a platform for side hustle for several millennials. Most millennials, part-time jobs seekers and even those looking to restart their career have made the gig economy as their platform to seek their side-hustles. With the boom of the gig economy in India, several young individuals who are a part of the working class are increasingly drifting towards the gig economy since it is a source of alternative income.

Disadvantages of Gig Economy

The major disadvantages of gig economy are as follows;

• Lack of Benefits

One of the major disadvantages of the gig economy is that the gig economy does not provide ample benefits to the gig workers. Since most of the gig workers are hired only on a temporary basis or based on the need of the project, they are not provided the benefits that a full-time employee would likely get. This lack of social security benefits to gig workers can also bring a fear amongst gig workers and would push them to look for full-time jobs.

• Motivation

As mentioned earlier, the gig economy is still in its infancy and most entrepreneurs are still framing the ins and outs of the gig economy in India. Unlike a nine to five job where if one team member slacks off from their daily routine they will be motivated by the rest of their team and be brought to track. However, with the gig economy, there is exactly no source of motivation or grievance redressal for gig workers. The gig workers hustle by themselves all the way long and this lack of motivation or a missing source of support can affect their work efficiency.

• Lack of Fixed Income

Another drawback of the gig economy is that as a gig worker your incomes are often inconsistent since you are paid based on the longevity of the task at hand. This might pose a disadvantage for many individuals who are used to getting a fixed pay at the end of the month.

Takeaway

We’ve enlisted all the advantages and disadvantages of the gig economy, what are some other pros and cons of the gig economy? Let us know in the comments below!