The Rise of the Gig Economy and Changing Employment Models

The gig economy is a type of work setup where workers take on multiple short term jobs similar to a musician that performs at different shows. These jobs are focused on delivering results, with no guarantee of continuing work, but the workers have the freedom to select the assignments. In this sector of an economy, there is a three-party transaction involving the independent worker, the consumer in need of a specific service, and a company that facilitates the transactions. For instance, Uber operates within this mode, where drivers independently provide services at a rate determined by distance or time. The consumer’s needs are met through a technology-based platform that connects the parties and takes a portion of the earnings as fees.

This particular arrangement can be observed in Barbados through the utilization of the PickUp app or various other online platforms that facilitate the connection between consumers and service providers or workers.

This work arrangement represents a departure from the conventional employer-employee dynamic our parents were accustomed to, signaling a shift in the responsibilities of Human Resource Managers in various organizations. Despite this, the necessity for people managers will persist, albeit with a transformation in the delivery of such services within this particular sector of the economy.

Advantages

1. The capacity to offer chances of marginalized sectors of the community such as educated youth who are unemployed, the underprivileged, and so on.
2. Offering adaptable work schedules to employees, particularly those looking for additional income.
3. Improved handling of the balance between work and personal life for staff members.
4. Enhanced cost-effectiveness for employers.

Disadvantages

1. Absence of worker benefits such as national insurance, pension scheme, health-insurance, paid leave, etc.
2. Workers face a high chance of irregular income, leading to challenges in achieving financial stability and vulnerability to cost-cutting demands from consumers.
3. Challenges in obtaining accurate data on gig-economy participants, hindering efforts to regulate workers and their gig-work system.