Tag: employee wellbeing

Gig Economy

What Is the Gig Economy?

In a gig economy, temporary, flexible jobs are commonplace and companies tend to hire independent contractors and freelancers  instead of full-time employees. A gig economy undermines the traditional economy of full-time workers who often focus on their career development.

Understanding the Gig Economy

In a gig economy, large numbers of people work in part-time or temporary positions or as independent contractors. The result of a gig economy is cheaper, more efficient services, such as Uber or Airbnb, for those willing to use them. People who don’t use technological services such as the Internet may be left behind by the benefits of the gig economy. Cities tend to have the most highly developed services and are the most entrenched in the gig economy. A wide variety of positions fall into the category of a gig. The work can range from driving for Lyft or delivering food to writing code or freelance articles. Adjunct and part-time professors, for example, are contracted employees as opposed to tenure-track or tenured professors. Colleges and universities can cut costs and match professors to their academic needs by hiring more adjunct and part-time professors.

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. 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.

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.

Criticisms of the Gig Economy

Despite its benefits, there are some downsides to the gig economy. While not all employers are inclined to hire contracted employees, the gig economy trend can make it harder for full-time employees to develop in their careers since temporary employees are often cheaper to hire and more flexible in their availability. Workers who prefer a traditional career path and the stability and security that come with it are being crowded out in some industries.

For some workers, the flexibility of working gigs can actually disrupt the work-life balance, sleep patterns, and activities of daily life. Flexibility in a gig economy often means that workers have to make themselves available any time gigs come up, regardless of their other needs, and must always be on the hunt for the next gig. Competition for gigs has increased during the pandemic, too. And unemployment insurance usually doesn’t cover gig workers who can’t find employment.

In effect, workers in a gig economy are more like entrepreneurs than traditional workers. While this may mean greater freedom of choice for the individual worker, it also means that the security of a steady job with regular pay, benefits—including a retirement account—and a daily routine that has characterized work for generations are rapidly becoming a thing of the past.

Lastly, because of the fluid nature of gig economy transactions and relationships, long-term relationships between workers, employers, clients, and vendors can erode. This can eliminate the benefits that flow from building long-term trust, customary practice, and familiarity with clients and employers. It could also discourage investment in relationship-specific assets that would otherwise be profitable to pursue since no party has an incentive to invest significantly in a relationship that only lasts until the next gig comes along.

Work-life balance in the present scenario

It is evident that like all things, advancement in technology also has its pros and cons. With time and technological advancements, employees all around the world become easily accessible even after work hours. Due to this, it has become very difficult for employees as well as their organisations to differentiate between work and life outside work, especially as the ‘work from home’ concept gains popularity due to the pandemic.

For some employees work begins even before they reach their workplace. They do not even get the opportunity to start the day they want to. Checking messages and making calls first thing in the morning can be very stressful. Some do not get to spend enough time with their children and family, due to the exhausiting demands of their jobs. For some, vacation isn’t really time off.

Work to live, not live to work

It is important for both the parties, the employees and their organisations to understand the ‘work to live, not live to work’ ideology. As an individual, the employee must not let their work define them. There are various other aspects of life that are equally important. It is crucial to maintain a balance and not overlook the other aspects even if work provides them with recognition, power, status or money.

Otherwise, one day, if they were to lose their jobs due to unforeseeable circumstances (the pandemic for example) or even retire, they wouldn’t be left with anything substantial like human connections, hobbies or personal interests. To conclude, an individual shouldn’t be dependant on their jobs to the extent that they feel lost if they were to lose it, no matter how passionate they are about their work. Balance is very important.

Nowadays, it is very easy to get lost in the race of establishing oneself and earning more. Due to this, one never realises that they reached their initial goal years ago. It is human nature to always want more. However, it is important to be grounded and introspect from time to time so it doesn’t become a never-ending process.

As an organisation, it is equally important to respect their employees’ boundaries and preach and implement a healthy work-life balance. Although technology makes it very easy to reach people, it is important to use it professionally and set some boundaries. This will also benefit the organisation in the long run as employees who are not overburdened and overwhelmed with work and have a good work-life balance with frequent days off or vacations in the year, tend to be more creative and energetic and more importantly, feel cared for.

Therefore, it will not only increase the performance and productivity of the employees of the organisation but also help it retain its employees.

It is extremely important for an employee to be well-rested, have a good social life outside work to give their 100% at work. Studies show that overwhelmed and overworked employees are less productive and creative. Fatigue might result in low morale and zeal and takes a toll on the mental and physical health of the employees of the organisation which would lead to high employee turnover rates.

An organisation should promote healthy work life balance and days off for their employees so the employees feel like an integral and valuable part/asset of the organisation. This would boost the organisational citizenship behaviour of its employees which would ultimately help the organisation retain its employees.