Advantages and Disadvantages of the Gig Economy

The Pros and Cons of the Gig Economy in the Digital World.

The Gig economy has brought about a massive change in the way people work. You get flexibility and a good option to earn a living. This is a model that lets part-time workers, freelancers, and project-related work be done by workers who can deliver the goods to customers, clients, or businesses. This model facilitates work to be done by using digital platforms. Most of the time, the nature of the work seems temporary, though. A lot of companies like Uber, Airbnb, etc. have presented this system, or can be regarded as the ones who spearheaded this movement, enabling the workers to set their own schedules, and they have the liberty to work from a place of their choice. Flexibility is the best part about this model.

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If you want to know about the positives of this model, then you have to first consider the fact that, as a worker, you get plenty of freedom, which is perhaps not visible in a traditional 9-to-5 job. The independence that you get working under this system is something most of the workers would love to have. You can work in multiple domains provided you have the necessary skill sets and expertise for the same. You don't have to remain confined to one particular type of work that you usually associate with in a traditional job.

Based on your level of expertise, knowledge, experience, and exposure in the concerned fields, you can earn a lot. The earning capacity is highly promising based on the ability of the worker under this model of work. When we talk about the income potential, it is massive under this system of work. Geographical barriers no longer become a hurdle under this system. Since you work in a digital platform, physical distance, location, time zone, etc., nothing acts as a hindrance. It lets you access opportunities that are global. Another plus is that the workers decide when, where, and how much they wish to work.

Why do some Companies Prefer the gig Economy Over the Traditional System of Employment?

Let's analyse the shortcomings of this work model. At the outset, there is a need to know that there is no job security attached to this system. You can have plenty of work, and at times you might have no work whatsoever. Since income level varies without consistency, financial instability may bother you if you opt for this system. Health benefits, paid leaves, retirement plans, these are privileges you will be deprived of under this system. Since you might not have a working structure, it might impact your health negatively, or you may feel stress and isolation.

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This is a good question worth asking. Why traditional form of employment being replaced by the gig economy? The benefits that draw the attention of companies are cost-cutting and flexibility. Certain facilities are mandatory, and companies will have to extend those facilities to their regular worker adding to the cost factor. These facilities are not required to be given to the workers under the gig economy. So the cost or expense gets reduced.

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Yes, in some cases, when traditional employment gets replaced by the gig economy, then the standard of work may experience a downward trend, or the quality of work may get slightly compromised since regular employees are usually seen to be more committed or at least more accountable. Gig workers can be equally serious about their job, but you may see more attachment to a job when we talk about regular employees.

Conclusion

On comparison of the pros and cons of the gig economy, we may opine safely that in certain jobs gig economy could be highly productive, while there are certain jobs that must engage regular workers. The nature of the job determines whether the gig economy is beneficial or not under a specific condition. Every job has slightly different demands and requirements, so it is perhaps unfair to say the gig economy is beneficial across all sectors. From the workers' point of view, the gig economy brings greater autonomy and independence, but lacks job security, and there is no guarantee of a stable income. It has positives and negatives, both included.

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