The Pros And Cons Of The Gig Economy

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Whether or not the gig economy is as big as some suggest, it’s clearly part of the future labour market. Even if it doesn’t overtake the traditional job sector, it’ll nonetheless continue to have an influence on the global job market and economy. But what impact does the gig economy have, both in terms of businesses and the workers? In this section, we’ll examine the pros and cons of a gig economy to organisations and gig workers. You should also watch the below Financial Times discussion on the gig economy and its implications to the future workforce: The benefits of a gig economy Gig economy can have a huge positive impact on the labour market. Participating in the gig economy is not only beneficial for the worker, but it can also bring …show more content…

Workload within a company hardly remains static and adjusting to increasing or decreasing workload can be difficult with full-time staff. But it the organisation relies largely on contract work, they can better adjust to changing situation without having to fire long-term staff or finding a quick hire. To gig workers The benefits to gig workers are rather evident in the reasoning behind Millennials preferring these roles. First, gig work can provide the worker more flexibility and therefore, create a better work-life balance. As the worker is in control of accepting or rejecting the work, it’s possible to plan the schedule according to one’s personal preferences or needs. Furthermore, gig work often means flexibility in terms of working from home, on the go, or a beach resort in the Bahamas. If the job is digitalised, the organisations don’t often care whether you do the work in your sweatpants or a suit, as long as it is done. This also means the gig worker is more able to pick the jobs that seem the most interesting. In a full-time position, there isn’t much flexibility in accepting the work given to your desk each morning. But as a gig worker, you have a little more freedom to find the jobs you are passionate about and which are interesting to …show more content…

To businesses Introduction of a gig economy means an organisation must prepare for certain structural changes. These are mainly present in the company’s HR culture. Organisations must be able to solve issues such as: • How to integrate different contract terms and conditions into a cohesive format? • How offer pertinent benefits and rewards to gig workers? • How to reduce HR admin burden in the face of increasing employee turnover? • How to manage quality control? I.e. avoiding a situation where contracts are just given to the cheapest bidder, rather than the best or most reliable worker. Companies should also consider how they could protect the company’s knowledge advantage. If the organisation is hiring a lot of outside workforce, the same workers might also work for direct competitors. The loyalty of temporary workforce is not necessarily the same as permanent employees, who have formed lasting relations inside the

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