The GIG economy is a phenomenon that is irreversibly changing the landscape of the labor market around the world. Employers who acquire the ability to effectively manage this trend will have the opportunity to increase the flexibility and competitiveness of their organizations in the dynamic business environment of the 21st century.
The GIG economy, also called the GIG economy, is a work model based on short-term contracts and orders that are performed by independent workers on commission, often called "GIG workers". It is characterized by flexibility in shaping working hours and independence in choosing orders and projects to be implemented. The GIG economy enables people to work for themselves, often through online platforms that connect freelancers with people or companies in need of specific services. Typical examples of work in GIG economy include translations, copywriting, graphic design, and programming.
In 2040, Generation Z will be the largest generation on the Slovak labor market. The Cpl study shows that 31% of this generation wants to become a freelancer in the near future (up to 5 years), while 39% of Generation Z in Slovakia wants to work remotely or in a hybrid model. Since the pandemic, location is no longer a limitation in doing work. Additionally, in the next 5 years, a large part of our jobs may be automated or replaced by artificial intelligence. Time for changes.
Who will benefit from the GIG economy?
GIG economy is a response to the growing demand for flexibility in professional life, both on the part of employees and employers. Employees can decide about their working hours and choice of projects, giving them greater control over their professional lives. In turn, companies have access to a larger talent pool and can quickly scale their operations, employing employees only for the needs of a given project, without long-term commitments - thus adapting to changing market conditions.
In the CEE region, the GIG economy is already a noticeable trend, especially in cities where the demand for services adapted to the fast pace of life is growing. Companies are starting to use freelancers for various tasks, which increases the diversity of the labour market. Slovakia is no exception to this trend. Our local companies, striving to gain a competitive advantage, understand the potential of the GIG economy and implement it in their companies, gradually adapting to the changes taking place. Slovakia has seen significant growth in flexible employment in recent years. This can be attributed to several factors, including the development of technology, changing career preferences and the desire for greater work-life balance. Many people in Slovakia are currently choosing part-time work to supplement their income, pursue their passions or gain valuable professional experience.
Dangers?
The GIG economy is gaining popularity around the world, influencing the way traditional work structures are organized. While it offers many advantages, such as flexibility and diversity of career opportunities, it also raises challenges related to social security and labour rights, which are becoming the subject of increasing attention and legislative regulation in various countries. GIG employees often do not have access to health insurance, retirement plans or paid time off. Additionally, the gig economy may lead to increased competition and downward pressure on wages.
How to adapt to changes?
Flexibility is the new reality and it's time to adapt to the GIG economy. To prepare for this, employers should consider several steps:
1. Openness to new forms of recruitment: using various online platforms that connect a freelancer with people or companies in need of specific services. This approach can significantly increase access to specialists at various skill levels.
2. Flexible work models: introducing flexible forms of employment in the organization, such as contracts for specific work or mandate contracts, can help adapt to changing market needs.
3. Technologies: investing in technology and tools supporting remote work and communication with freelancers, which may additionally facilitate remote team management.
4. Legal security: properly concluded contracts with freelancers, ensuring clear terms of cooperation, consistent with local labour law and protecting the interests of both parties to the contract.
5. Competence development: investing in the development of managerial skills related to managing teams consisting of contract workers to effectively use the potential of the GIG economy
We already know that demand for temporary/B2B workers will increase across a variety of industries, including technology, financial services, sales, and healthcare. This will create new opportunities for people with specialist skills and experience. Additionally, technological advances such as artificial intelligence and automation are also creating new job categories and will change the nature of work. Thanks to an extensive database of specialists from various industries, Cpl supports its clients in implementing flexible forms of employment and finding appropriate alents. Thanks to our experience and advanced recruitment tools, we quickly and effectively match suitable candidates and advise on best employment practices. Let's get ready together!