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As the coronavirus crisis evolves further, businesses are being forced to severely cut down their operations and millions of workers all around the world are losing their jobs. However, for the gig economy, the challenge in the face of the current pandemic is a complex one. The steps the organizations and the gig economy take to address it will permanently change the aspects of the gig economy in the upcoming days. Here are a few ways in which the impact of Coronavirus on gig economy is seen and how it can adapt to overcome the challenges and rise as winners.
Current situation of the gig economy:
Most gig workers live paycheck to paycheck. This means losing even a single day of work can make the difference between paying rent and buying groceries. Almost 70% of gig workers have no income, and only 23% have some money saved. Moreover, with the increasing unemployment rate, recent layoffs, and a tough job market have made it extremely difficult for gig workers to get hired during this pandemic. However, this is not entirely the case. Over this course of a few months, the gig economy has grown large and is now quickly gaining traction as the new normal. As more and more businesses are recognizing the benefits of the gig economy and employing gig workers, they are using it to their advantage and soaring ahead of their competitors thus, benefitting both the gig economy and their business.
More reliance on gig workers:
Most CXOs agreed that their IT infrastructure such as availability of hardware, internet, and remote access fell short of facilitating a smooth transition, and employing gig workers brought them fruitful results. Even in giant tech companies like Google, temp workers (https://www.nytimes.com/2019/05/28/technology/google-temp-workers.html)outnumber full-time employees. Organizations and companies relying on gig workers are focusing hard protecting their business amid coronavirus as well the gig workers who deliver their services. Most companies have already introduced measures to help protect their gig workers population and this further fosters the growth of the gig economy in the pandemic. In fact, several full-time employees are opting to be gig workers because there is a chance for making extra money, they can better balance the career and family needs and they can have better autonomy and control amid this pandemic.
A Change in perspective:
This pandemic has shown the true size and capability of the gig economy. Employers and the general public are seeing the importance of the gig economy responsible for essential jobs during the pandemic. In fact, many companies rely on freelancers more often than assumed. Thus, the value of trust placed on the gig economy by organizations is increasing. This new perspective will be nurturing the gig economy to grow more in the upcoming years.
The bright future ahead for the gig economy:
The gig economy is rapidly gaining ground due to the current business and economic conditions. As the nature of work is changing, businesses across the world are trying to utilize this shift for implementing a greater workforce for their business. Organizations are realizing that staying ahead of the curve means that they must be able to identify and adopt new practices like hiring gig workers. According to a report, three in five organizations are gauging the increasing share of gig workers to reduce the dependence on full-time employees. Thus, the trajectory towards the rising gig economy where more and more people are working as gig workers is likely to be accelerated as an aftermath of the pandemic.
Read our article on: Benefits of hiring Gig workers through temp agencies
The gig economy will definitely continue to grow as organizations seek a low-risk staffing option and workers seek economic opportunities in the new normal with minimal effort to participate. Seasoned temp agencies like Intone can act as a link between job creators and job seekers. Intone can help deliver the right gig workforce for businesses thus giving companies greater flexibility in operations to allow them to tap into their niche markets. In the case of the gig economy, Intone not just makes it easier for the gig workers to get hired but also offers them a financially secure future.