The Gig Economy by Ajay Singha - Raconteur Indica

Popularized during the last global financial crisis, the “Gig Economy” has been around since mankind commenced economic activity. Before Europe’s industrialisation in the 19th century, ordinary people worked in multiple jobs to earn a living. Very often they travelled from the outskirts to city centres in horse drawn gigs and perhaps the term stuck on from there. Some attribute the nomenclature to the fact that workers had to literally whirl like a top (which was then called a gig) from one task to the other. Etymologists remain undecided about the word’s ancestry but for sure people were constantly on the move, undertaking several part-time assignments to add to their incomes.

Today, the gig economy encompasses a wide spectrum of people. Highly paid management consultants, IT service providers and stock market players constitute the top end. On the other end are utility workers comprising electricians, plumbers, mechanics and innovative solution providers. Aspiring middle classes drive this phenomenon as people constantly seek additional incomes to be able to spend more. Contrary to popular belief the gig economy is not about a race to the bottom for cheaper deals and low pricing of services and products. It may undermine the traditional economy and shift focus from corporations to the individual but it requires lifetime skill development and generates income in non-traditional and innovative ways. More than ever, employers are now unwilling to hire full-time workers yet require someone to complete their tasks. A renewed interest in the gig is a natural response to the economic upheaval accelerated by the recent global pandemic. Facing unprecedented unemployment, this unique system of income generation is fast becoming “de rigueur” across continents.

Organizations now outsource their work to external partners creating two winning propositions: Top quality talent and limited financial burden. Talent is now paid for when used, and ensures measurability. The elusive link between wages and deliverables has become more apparent in this new work culture. The CEO of Intuit Inc. Brad Smith rightly predicted: “The gig economy in USA is now estimated to be about 34% of the workforce and expected to be 43% by the year 2020.” Research by Oxford Institute and IIIT Bangalore claims that one in four of the global gig worker is an Indian, serving local, national or international markets primarily through platforms. Based on select criteria Dr. Leonard Bertain, founder of the Consortium of Problem Solvers, claims that by 2025 about 50% of the workforce will comprise of gig workers in the US economy. The work scenario across continents is undergoing monumental change and the rules of the game are changing. It is high time that each one of us also adapts to the altered socio-economic environment. If you decide to become a gig worker your activity and action must clearly connect to your stated area of work and objectives. Focus on one segment does not prevent the gigger from undertaking other types of jobs. Operating in silos and compartments with exclusive work profile with separate work descriptions is the key. Financial planning of cash-flows is very different for gig workers. As a one man band all aspects of work like billing, payments and receipts have to be done individually. These challenges have resulted in the creation of IT enabled platforms which take of all these logistics for the gig worker.

Tips for building a winning proposition: Become your work: President John F Kennedy said, “Success has many fathers but failure is an orphan”. You must learn to accept that success as well as failure in your work defines who you are to yourself. Feedback from clients, both after success and failure, leads to self improvement, change in tactics and strategy. Identify your unique position: Find out what you are good at and keep getting better at it. It is okay if your chosen position is narrow or niche; what matters is that you build expertise and uniqueness in your chosen area. Stay on the Bleeding edge: To do well as a gig worker you must retain cutting edge knowledge levels in your work area. Create intellectual advantage: Invest in the cycle of “learning-doing-learning”. Learning from best-in-class benchmarks and enhancing yourself during every project is a learning process. Your knowledge and know-how has to be superior to employees in larger corporations engaged in similar work. Build a personal brand: Be known for your capabilities and make your presence known by offering unique solutions. Networking on dedicated portals or displaying your work on established IT enabled platforms is another way for attracting attention and publicity. Always remember that you are the product. Develop a sustainable business: Sustaining productivity is a constant struggle both for procuring business and executing tasks. Distress and distractions erode focus and lead to bouts of self-doubt and self pity. A sustainable business model is your only option of staying afloat and available in the market. Inculcate a spiritual sense of purpose: Infuse a ritual or spiritual element at the beginning of each day to ensure that positivity and a sense of purpose is added. After a good night’s rest commence your work with the most challenging tasks first. Ensure that meditation, nutrition, exercise and personal care are part of the daily routine. Socialising and peer group networking: Gig workers run the risk of social isolation as they work independently and this may impede growth in business. Socialising and networking with select business multipliers is critical for sustaining business. Search for “Thought Leaders” and follow them: The best way to uncover latest global trends and future predictions in your line of work. You will have to think global even if you act local in the face of globalised competition. Curate your contacts and support base: Time is limited and must be invested in creating meaningful relationships to support your economic and social well being. While business contacts are critical the supportive collaborators include family and friends who help in challenging times. Ensure you do not lose connect with familial ties. Build a financial safety net: Easier said than done but this is an essential feature. The gig worker will always have fluctuating incomes and security nets must be in place as and when you hit a dry patch. Today the gig worker depends on a corporate controlled IT enabled platform. Platforms ruthlessly compete for market share and “Platform Capitalism” is the new bully on the block. Platforms are notorious for exploiting gig workers and a system of rating has been developed by the Oxford Institute and IIIT Bangalore. The “Fairwork Score” analyses the quality and fairness associated with work conditions, contracts, management and representation of workers in each platform and gives ratings.

Work is more than just about money, it is about social status, individual fulfilment and personal satisfaction. A study by the Harvard Business Review reveals that gig workers experienced personal, social, and economic anxieties in the absence of a traditional employer. On the positive side, the independence of a gig worker is a choice they love in the long run. They lead much richer lives than their corporate counterparts. Working long hours, modest financial returns, no social benefits and challenging work conditions are the downside. In the brave new world of the gig economy there is no mentor, no HR or kind colleagues to help climb the ladder of success. In today’s reality nobody will get a chance to say “I never saw it coming” when they are eased out of their jobs. As people get swept under the tide of change, it is imperative that we understand and embrace the gig economy voluntarily. To quote Paul Oyer of Stanford Business School: “Giggers collect 15% higher amounts than people in traditional jobs doing the same work.” It is therefore a myth that working free lance is not economically viable. It is time to disrupt our thinking and look for new avenues to bring out the business entrepreneur in each one of us. As we enter unchartered waters, it may benefit to follow the advice of French novelist Gustav Flaubert: “Be regular and orderly in your life…so that you may be aggressive and original in your work.” The old order changes, yielding place to the new but we can rest assured that in the post-pandemic world, the gig economy is here to stay!