Independent work and Gig Economy…

 

In a gig economy, temporary, flexible jobs are commonplace and companies tend toward hiring independent contractors and freelancers instead of full-time employees. A gig economy undermines the traditional economy of full-time workers who rarely change positions and instead focus on a lifetime career.

Important definition.

GIG: a live performance by a musician or group playing popular or jazz music.

Noun: gig economy; plural noun: gig economies 1.a labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs. 2.working in the gig economy means constantly being subjected to last-minute scheduling (gig economy, meaning, google search).

Narrow and broad definitions of gig economy.

Rachael Botsman in his Ted talk -what´s mine is yours- said “To the gig-economy worker who has no idea how many hours she’ll be putting in next week (much less whether she’ll make enough to pay her rent or her health insurance), the prospect of donning a fedora, taking the commuter train into the city, sitting at a desk from 9 to 5 while her ample pension benefits accrue — well, it sounds like a fantasy now.”

Independent worker?

Independent work has significant growth potential in the years ahead, based on the stated aspirations of individuals and growing demand for services from consumers and organizations alike. This shift could have real economic benefits by raising labor force participation, stimulating consumption, providing opportunities for the unemployed, and boosting productivity. But some key challenges will need to be addressed in order to make this a feasible and satisfying development for workers.

Characteristics of independent work:

• A high degree of autonomy: Independent workers have a high degree of control and flexibility in determining their workload and work portfolio. They can decide which assignments to accept based on criteria such as the fee, the desirability of the client, or the timing, and they can change those choices over time.

• Payment by task, assignment, or sales: Independent earners are paid by the task, assignment, contract, or the volume of sales they make. Unlike salaried employees, they are not paid for time not spent working.

• Short-term relationship between the worker and the customer: Independent earners perform short-term assignments, such as giving someone a ride, designing a website, treating a patient, or working on a legal case. Both the worker and the customer acknowledge the limited duration of the relationship. Some contracts may extend for months or even years, at which point the individuals become indistinguishable from traditional employees; we therefore define independent work as assignments lasting less than 12 months.

Independent workers' definition focuses on three key features.

• Those who provide labor services.

• Those who sell goods.

• Those who rent out assets (for example, a spare room). All three categories involve an investment of time and effort, but they are not mutually exclusive, and many individuals participate in more than one category.

On the other side of the exchange is the buyer of the service or task, which could be an

 • individual consumer,

• a company,

• or an organization.

We call this party the “customer”, “client”, “buyer”, or “consumer.” Finally, independent work is sometimes facilitated by a third party, such as a staffing agency for temporary assignments or a digital platform that coordinates supply and demand to make the match. Some go further to provide ancillary services such as transaction support and review and feedback mechanisms. We call this party the “intermediary” or “digital platform,”

Other alternative definitions of the alternative work:

• Alternative work

• Nonstandard work

• Independent work

• Own-account work

 

INDEPENDENT WORK: CHOICE, NECESSITY, AND THE GIG ECONOMY. MGI, 2016