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Decoding The Future Of The Gig Economy
What do postgraduate students who moonlight as freelance article writers have in common with stay-at-home parents who work a remote part-time job? They are all contributing towards India’s rapidly growing gig economy. The post-pandemic rise of the digital age has resulted in today's workforce becoming more mobile, with the ability to work from anywhere leading to unprecedented gig economy growth. A compilation of statistics on the gig economy by ASSOCHAM and Primus Partners in 2021 states that India’s gig workforce includes 15 million “freelance workers engaged in projects in different sectors”, a huge jump from TeamLease’s estimate of 8.5 million gig workers in 2016.
The gig economy is a labour market in which independent contractors and freelancers fulfill temporary and part-time positions rather than traditional work arrangements. While gig work has existed in India for some time, it has gained traction with the emergence of app-based models involving freelance writers, online tutors, digital marketing experts, web developers and cybersecurity experts.
In 2020, the gig economy grew significantly as those who had lost their jobs turned to part-time and contract-based work for income. Currently, as per Niti Aayog, approximately 47% of India's gig workforce engages in medium-skilled jobs, 22% are involved with high-skilled jobs, and the remainder engages in low-skilled jobs. The trend shows that the concentration of workers with medium skills is gradually declining, while the concentration of workers with low and high skills is increasing.
Since they can work low-intensity jobs while learning complementary skills, gig workers can devote more time to learning new skills than traditional workers. Being a part of the gig economy can improve the work-life balance of employees, compared to traditional jobs. Gig workers are happier, according to various studies conducted over the years, and happier workers are more committed to their jobs (which increases productivity), resulting in lower absences and turnover. The gig economy empowers workers with more flexibility in scheduling and structuring their days, allowing them to maximise their potential for work and life.
Ensuring this community's comfort and security is an investment in a more progressive and prosperous future. According to the Boston Consulting Group's study, 'Unlocking the Potential of the Gig Economy in India, participation in the gig economy is higher in developing countries (5-12%) than in developed economies (1-4%). By 2029-30, India’s gig economy will expand to 2.35 crore (23.5 million) workers, according to the NITI Aayog study. As per the Boston Consulting Group's study, there is potential for 90 million jobs through gig work in the long term, which can add up to 1.25% to the nation's GDP over time. This could be crucial in helping India reach the $5 trillion GDP mark in the future.
The gig economy is expected to grow significantly in the coming decades, and with good reason- according to Morgan Stanley, 50% of the global workforce will be involved in the freelance and gig economy to some extent by 2027.
Job Rotation - Here to Stay?
Have you ever flirted with the thought of having your skilled employees work across multiple departments but dismissed that thought as an outlandish fantasy? Well, it is a practice that is being tried and tested in various domains under the label of ‘job rotation’.
Job rotation is the practice of switching employees between various departments on a regular basis to ensure that they gain exposure to an organisation's different functions while learning and enhancing their skills.Smart job rotation policies promote employee flexibility, increased job satisfaction and reduce turnover rates while also fostering innovation. While this may result in better organisational outcomes, job rotation is useless unless properly planned and implemented. Indeed, repetitive or haphazard job rotation can exacerbate some of the organisation's problems.Before you jump in to implement a job rotation policy at your workplace, do consider the disadvantages apart from the obvious advantages such as enhancing employee experience while developing a more adaptable workforce:
- Financial and time-based repercussions Employees will need to be trained more frequently if they are constantly moved to different positions. The time devoted to training people would impact productivity and the company’s profits.
- May lead to dissatisfied employees Moving from one department to another may be stressful for some employees, especially if they have been in their current position for a long time or believe that someone taking over their current role will disrupt the processes that have been set. Furthermore, moving an employee out of a role they enjoy may result in dissatisfaction, a lack of motivation or even their resignation.
- Insufficient opportunities for promotion Moving from one position to another across departments does not imply a promotion.Employees who want to advance to higher levels in a company may see this as a barrier in their career path.
Chat GPT vs. Google Bard: Key Distinctions
After OpenAI’s ChatGPT gained prominence in November 2022, it slowly but surely revolutionised the world by advancing the capabilities of conversational AI, enabling more engaging and interactive interactions between humans and machines. Its natural language processing capabilities have transformed industries, ranging from customer support and virtual assistance to content generation and knowledge sharing, enhancing user experiences and opening new possibilities for automation and communication.
And now, the parent company of Google, Alphabet, has unveiled Bard, a conversational AI chatbot, as Google's response to ChatGPT. While the services of ChatGPT and Bard are similar, with users typing in a query to receive a humanlike response, there are some notable differences that set them apart.
The data source is the primary distinction between ChatGPT and Bard. Bard regularly accesses the internet for information, ensuring that it is up to date. By using the most recent research, Bard has access to more relevant data and can gather information instantly. Whereas the sources used by ChatGPT are limited to information from 2021, so it lacks more recent data and analysis.
ChatGPT is popular for generating written code, product descriptions, blog posts, email drafts, summaries of transcripts, meetings and podcasts, simple explanations of complex topics etc. On the other hand, similar to digital assistants like Alexa and Siri, Bard's main objective is to retrieve information in a straightforward response rather than a search engine results page, but with links for users to find out more. Bard also works as a personal assistant, helping with tasks like making reservations, booking vacations, and meal preparation. In contrast to search engine keywords, Bard uses more natural language or conversational search queries. In 180 nations, Bard is open to the public and provides content in three languages. In March 2023, Microsoft announced that it would be integrating ChatGPT into its Microsoft 365 suite of business software. This means that businesses that use Microsoft 365 will be able to use ChatGPT to create chatbots that can help with tasks such as customer service, sales, and marketing.
Since they are both still in their early stages of training, it is difficult to say which chatbot is superior at this time. While we await the integration of AI into Google's search engine, ChatGPT in the past few months has shown the potential to revolutionize the way businesses interact with their customers. As these chatbots are still being trained, adjustments are still being made and the upsides are possibly limitless!
Maintaining a Committed Workforce Amidst Economic Instability
Amidst economic instability, organisations grapple with challenges like market uncertainty, financial constraints, and workforce concerns. However, the impact of a committed workforce in these times cannot be underestimated. According to Gallup, organisations with a highly engaged workforce outperform their competitors by 147% in earnings - per share and have 21% higher profitability.
Studies reveal that economic uncertainty can lead to a significant decline in employee morale and motivation, resulting in decreased productivity and increased attrition rates. To maintain commitment amidst such challenges, organisations must proactively address these concerns, foster open communication channels, provide reassurance, offer professional development opportunities, and implement supportive measures that prioritise employee well-being and engagement.
Research consistently supports the effectiveness of strategies for maintaining a committed workforce amidst economic instability. As per Gallup’s research, open and transparent communication has been shown to enhance employee engagement and trust. The Harvard Business Review notes that employee engagement initiatives, including involvement in decision-making and ownership of projects, have been linked to higher levels of commitment and job satisfaction. Empathetic leadership figures and a supportive work environment have been found to enhance employee well-being and commitment by Forbes. By implementing these evidence-based strategies, organisations can foster a committed workforce even amidst economic instability.
Additionally, agility and adaptability are paramount for maintaining a committed workforce in uncertain times. Organisations must be prepared to adjust strategies in response to evolving economic conditions. By embracing a proactive approach and staying attuned to market fluctuations, organisations can optimise their operations and ensure the continued engagement and commitment of their employees.