Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights. Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
Informalisation of employment
Yes! It is very much here and penetrating. With rising of gig economy in India informalisation of employment is much faster in comparison to other parts of the world. Social life driven by technology along with new generation preferences has fuelled it as it has brought fundamental changes in the way we work. Emergence of gig economy is a clear departure from formalisation of employment or standard work relationship. Gig workers are involved in almost every sector. It has now become a major game changer.
But it also unfolds certain questions that need to be answered by all concerned. Who are gig workers? Why they prefer this kind of work? How this economy is going to benefit the business, worker and society at large? What are the side effects of this economy? Is it a working class being created that receives lesser pay and fewer benefits with no future liability on business establishments and so on?
Freelancers, independent contractors, self employment, work to assignment, on demand talent, temp. worker, unemployed or underemployed youth unable to secure salaried job struggling to make out daily earning- whatever name we give but it is a class of people who either due to flexible nature of work or making extra money to supplement their existing income or simply don't want to have full time employment. They could be any of those or none of them. Business is certainly going to benefit from this work culture by supplementing skills of existing workforce, to reduce cost and filling temporary vacancies and reduced remuneration.
For gig worker, it may be attractive for the time being but in long run it may create social imbalance, dissatisfaction and insecurity. Because neither such workers are protected from present employment regulations, nor have any health or social benefit covers. They are stripped from social and health security. Apart from this, possibility of exploitation of such working class cannot be ruled out unless Govt. wake up and start noticing this working class and make certain guidelines or regulations to suitably take care of their social and psychological security. Workers, unfortunately in developing countries with lower skills are at risk. It is to be ensured that most vulnerable workers are not exploited. On the other side, this economy may be good for the people who after completing a long stint in formal employment chose to enter in to this market.
HR professionals need to find answers of the questions, create a fine balance between business needs and gig workers growth with welfare and social security.
Sept. 2019 edition cover story is on this emerging trend where experts attempt to find answers of intriguing questions and making a road map of future talent pool.
If you like it let us know. If not, well, let us know that too.
Dear Mr Anil,
I have recently superannuated from Grasim Industries Ltd from the position of Unit HR- Head ( Vice President -HRM). I am based at Noida, running a consulting firm and a freelance writer.
you are doing a noble job and developing awareness in the Industrial world for the betterment f the nation. Thanks for your thought-provoking idea and proactive support to Gig workers.