The Gig Culture and Economy have got a boost with the Government weighing in with aggregators like Swiggy, Ola, Uber, Zomato, Urban Company... On Sep 28, 2020, The Ministry of Law And Justice amended the Code of Social Security. They defined (not quoted verbatim) the Gig Worker as a person(s) who earns outside of the traditional employer-employee relationship.

The code elaborated that the Government intends to set up a portal to register Gig Workers and frame Social Security schemes related to their life and disability, health, maternity, old age protection, education... This was reiterated in the recent budget.

The Gig Economy is a free market system; companies hire independent freelancers and short- term workers (called Giggers or Gig workers) and pay per hour or per assignment. Gig workers in India have traditionally been restricted to the unorganized segment in a quasi-legal manner as it has been a grey area. For example, Gig workers are housemaids, car washers, society sweepers… Factories pay workers per piece of garment or unit produced.

Giggers benefit as they aren’t handcuffed to a company. Now, with the Govt’s promised social security, the safety net is being spread out. Giggers get the flexibility to move to lucrative opportunities across Industries, Verticals and Countries. Swiggy and Zomato riders usually register with both services, as do Ola and Uber drivers. I knew of a Thai Airway’s air hostess who was curating recipes/menus for a popular Asian cuisine restaurant brand. Waiters serve in restaurants part-time and also deliver for Zomato / Swiggy. A manager working in a company doubles up as a DJ on weekends. Companies save on fixed monthly payout for positions and the Gigger earns handsomely.

The fear that the Gig Culture, with its frequent changes in manning, leads to defective products or services is untrue. Technology supports the production and delivery of services. So, with just a few hours/days of training, Giggers reach peak efficiency. Besides Giggers regularly work for the same company. Also, since companies’ manning costs remain controlled, the price of the product/service is competitive and affordable. Customers win too.

The Gig Culture is behind the growth and success of Ola, Uber, Swiggy, Zomato, Urban Company etc which have been mushrooming for a little over a decade now. They pay their frontline employees per delivery/trip model. They (companies) reduced the fixed monthly salary cost and converted a healthy chunk of it to a variable component. Variable payout translates as ‘higher sales equals higher payout for manning and vice-versa’. This is great for business considering the current environment of VUCA - Volatility, Uncertainty, Complexity & Ambiguity. Companies meet demand spikes by increasing Giggers and easily hold out when demand bottoms-out by reducing the workforce. The recent pandemic is a case in point.

When the pandemic struck and things came unstuck, traditional companies took a beating and along with it the so-called permanent employees. Salaries were slashed and home loans, other EMIs, kid’s education... were all threatened. Is the pandemic really to blame or did we set ourselves up for this? Note: Gig Economy companies and Giggers actually prospered.

In the traditional system, emoluments aren’t based strictly on our contribution to the organisation but on the market ‘price’ or the perceived market value. Plus, many of us know how to negotiate better salaries. Our bosses too need an ‘excuse’ to pay us higher so they can negotiate a better pay for themselves with their boss. This boss too, in turn, would go to his / her respective boss and do the same. Chain reaction.

Added downside: Govt (PSUs) offer stable employment, guaranteed increments and promotions plus facilities. We have unions and Governments ensuring we get timely increments and bonuses. Private companies pay more and offer better facilities than PSUs so they can attract better talent and offer superior products and services. Rather than motivating employees to work better, all these ‘bribes’ do is make people slip into a comfort zone. To (re)motivate people, companies and PSUs get creative. They offer incentives for coming on time, dressing well, completing the task and call it Performance Linked Incentive (PLI). PLIs motivate folk for some time and then organisations even lower the bar to ensure they hit the target and take the prize. Remember, if juniors don’t get an incentive due to lack of performance, the bosses can’t either or at least it becomes difficult to justify.

So, we sometimes have situations like more pay for less work. Yet, we still compare ourselves to others and expect more for even less output.

Another logic applied is that the company is doing well and can afford it. After all, are we not collectively making it happen? That may well be the fact, but it could also be that the company got lucky and was at the right place at the right time, or due to the vision of the leader. Don’t agree with me? Then explain why when a company tanks, no one assumes the blame? How many employees do you know who voluntarily forfeited salaries? They should have actually chipped in to bail out the company. But at such times the leader or the top management is blamed.

My take is that the traditional ways of employment (so-called permanent jobs) is like being in a zoo – meals on time, medical benefits, fixed working hours, and protected from the hazards of nature. The incentive-based companies are like circuses – do stunts that are against your nature and get your meal / treats and applause that you don’t really need.

But being a Gigger is like being a tiger in the jungle. Go out there and hunt for yourself daily. No mercy asked for and none given. No protection from the powers of nature or from other wild beasts. Sure, we may live shorter lives, but won’t we actually live? Why chose the zoo or the circus when we can walk on the wild side

Anyway, while we may debate the merits and demerits of the Gig Economy and Culture, one thing is for sure: It’s here to stay. The faster we adapt and innovate, the better! As we say at HTI, “Let’s Colaborate! After all, the Gig Economy is employ-meant your way!”

Colaborate App gives freelance professionals and companies a platform through which they can connect and work together on a mutually beneficial hourly basis. Sign up on Colaborate NOW! It’s new, so it would take time to generate interest. But it’s free for now, plus you get the first-mover advantage.

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In case of challenges / doubts / feedback, please connect with aaron@hti-india.com