Recession, by nature, takes a toll on everyone and the economy. But, one of the most impacted segments of workers is the Gig Economy! Gig workers are most impacted by Recession. But, how?
The number of invoices are likely to mount while the workers remain underpaid through a Recession. Whether you run a service-based business as a consultant or digital agency owner, house contractor, event planner, or freelancer who is part of the gig economy, you probably already struggle with late payments and missed bills.
Those professionals who fall under the Gig Economy are:
Self-employed workers
Contractors
On-call workers
Short-term works
All temporary workers
All about Gig Work: This work may be for a short term; they are paid hourly or daily. They are the ones that deliver the meals we buy online, drive us to and from work or other locations, and generally provide a variety of unseen services. Even though their tribe is expanding rapidly, there are umpteen challenges this segment of workers faces.
According to the report, the Gig Economy employed 77 lakh (7.7 million) employees in 2020-21. They make up 1.5% of India's overall labour force or 2.6% of the non-agricultural workforce. The report predicts that by 2029-30, India's gig employment will increase to 2.35 crore.
What should companies do to make them feel safe?
Gig workers require greater accountability inside the industry during a recession too. Many platforms operate with regulatory gaps and frequently claim that the law doesn't apply to them. They will assert themselves as a technology company rather than admit that they are actually a high-tech taxi service, food delivery service, cleaning service, etc.
Therefore, Software Development Companies must either ensure that work and workers are safeguarded by current law and, during a recession, employees should not be separated or discriminated against.
Build Communication
When recession hits , Gig employees are affected more than others. Honest communication between Gig workers and clients or customers helps them to sustain in the organisation for a longer time and wait till the markets get back to better shape.
Real change will occur when employees can bargain with their employers and clients collectively as opposed to on an individual basis. Gig workers are frequently viewed as independent contractors with rival enterprises. Therefore companies can, however, improve pay and working conditions as a group.
Extra Benefits
All gig workers should have the same IT Company benefits as other employees, and their work should be documented and rewarded. A few companies don't offer benefits to gig workers because they're not permanent employees.
To make gig workers recession-proof, they should be allowed paid sick leave, PF, ESI, and insurance for employees and family members.
(Author: Praveena Battila is a chirpy & inquisitive digital marketing executive at TechDoQuest.)