Gig Economy | Meaning and Definition

What is a gig economy?

A gig economy means, in an organization, employers prefer to hire contractors or freelancers instead of hiring full-time employers. The reason behind this is that the work will be allocated to them on a temporary basis rather than following a systematic schedule.

What will be the result of the “gig economy”? – When the consumers depend on the gig economy, it can offer more efficient and cheaper services with flexibility in a unique and fast way to standardize their business. It is now highly preferable by the younger demographic generation because the gig economy mainly operates through the internet. In the near future, many organizations will start adopting the gig economy as it can save time and money.

What are the advantages of the gig economy?

Cost Cutting – One of the major advantages that the gig economy provides to an organization is the minimized cost and increased savings. Hiring a contractor might avoid offering packages such as paid leaves, retirement, insurance plans, etc.

Increased output – Flexibility is an important factor that is considered by today’s society. The individuals or gig workers who need an extra income will get attracted to the job role, which follows some unique schedule. With this flexibility, the employee gets motivated, resulting in increased output for the organization.

From the employee’s point of view, what are the advantages of the gig economy?

Independent and Flexibility – The independent freelancer or contractor can work in their free space rather than working in the work environment that is allocated to them. The freelancers or contractors can start their work depending upon their flexible timings.

Income – The gig economy offers contractors or freelancers to earn extra income from the organization.