Contents
- What is the gig economy?
- How the gig economy originated and is developing
- How the gig economy works
- Advantages of the gig economy
- Disadvantages of the gig economy
What is the gig economy?
The gig economy, also known as gigonomics, is a model of labor activity where companies do not hire employees on a permanent basis but engage independent specialists to perform specific tasks and projects. This system is often referred to as the freelance economy and includes aspects such as freelancing, outsourcing, and part-time employment.
The platform "Professionals 4.0" is one example where large businesses can find the necessary specialists for their projects, and contractors have the opportunity to work with well-known companies such as "Gazprom Neft," "SIBUR," and "Skolkovo."
How the gig economy originated and is developing
The term "gig economy" originates from the musical slang of the 1920s when the word "gig" was used to refer to one-time paid performances by musicians. Over time, this term began to apply to any form of temporary work.
The active use of gigonomics began in the 2000s with the development of digital technologies and the internet. The first industry where these principles were applied was IT. Programmers, developers, testers, and other IT specialists began working remotely, opening new horizons for freelancers. Soon, other professions joined them, such as:
- designers and photographers;
- translators and copywriters;
- financial specialists and lawyers;
- psychologists and coaches.
The outsourcing system also became popular, allowing companies to transfer certain functions to third-party organizations, such as financial responsibilities. Gigonomics encompasses a wide range of professions, including those working in traditional fields such as taxi services or courier delivery.
How the gig economy works
The gig economy operates based on freelancing and outsourcing. In the first case, a business turns to an independent specialist, and in the second case, to an outsourcing company. The contractor is not a permanent employee but works on specific projects within set deadlines, receiving payment for the results.
The formats of cooperation can vary:
- one-time services (e.g., website creation);
- permanent part-time employment (e.g., managing a social media account).
In the gig economy, intermediary platforms also play an important role in helping to find contractors and clients. Popular services in Russia include:
- "Profi";
- "Yandex Services";
- EDC.SALE;
- YouDo;
- FL.RU.
Advantages of the gig economy
The gig economy benefits both companies and workers. Let's consider the main advantages:
Benefits for companies
- Cost savings: Hiring freelancers can significantly reduce expenses on taxes and social payments.
- Speed: Quick access to experienced specialists allows for faster resolution of current tasks.
- Access to external expertise: Engaging outside specialists allows businesses to gain a new perspective.
Benefits for workers
- Flexibility: Workers can plan their time and choose projects independently.
- Independence: The absence of traditional bosses allows for working in a comfortable mode.
- Additional income: Freelancing can serve as either a primary or supplementary source of income.
Disadvantages of the gig economy
Despite its advantages, the gig economy also has drawbacks. Let's delve into them in more detail.
Drawbacks for businesses
- Risk of low qualification: Hiring freelancers may lead to the selection of unqualified specialists.
- Legal issues: Incorrectly formalized labor relations can result in fines.
- Confidentiality: Difficulties in controlling compliance with confidentiality of information.
Drawbacks for workers
- Lack of social guarantees: Workers do not have rights to paid vacations or medical benefits.
- Unstable income: Earnings can vary significantly depending on the number of projects.
- Stress and burnout: Overwork due to multitasking and competition can negatively affect health.