India’s gig economy is growing at an unprecedented rate. According to a study, approximately 7.7 million workers were engaged in the gig economy during 2020–21. The study also projects that the gig workforce will expand to 23.5 million workers by 2029-30 (NITI Aayog).
The role of the gig economy in India’s modern corporate sector, therefore, requires deeper probing. Different challenges and opportunities exist at this juncture. Effective decision-making mandates an understanding of both.
This blog discusses the current state of the gig workers in India and how to leverage methods to employ them.
Understanding the Gig Economy Landscape
In India, several sectors have been influenced by the large-scale penetration of gig workers. The diversity necessitates tailored recruitment strategies that effectively address lingering concerns and hire engaged professionals.
However, that is easier said than done; the following challenges may hinder the smooth adoption of the gig economy:
Talent Scarcity: Talent scarcity in the gig economy has become a significant challenge as the demand for gig workers continues to surge. Despite this rapid growth in demand, the supply of skilled gig workers has not kept pace. Enhancing education and vocational training programs can help increase the supply of skilled workers.
Retention Difficulties: The inherent flexibility of gig work can result in higher turnover rates. They have the option to quickly transition between different employers, making retention a challenge. This poses challenges in maintaining a consistent talent pool.
Regulatory Ambiguity: The regulatory framework in India with respect to gig workforce is complicated. The guidelines related to compliance and worker classification may seem ambiguous. Decision-making and planning may suffer as a result of such complexities.
Strategic Approaches to Talent Acquisition
Lingering challenges still exist. However, the benefits associated far outweigh the complexities. As a result, organizations are still investing in their gig workforce. Even so, complications do need to be addressed.
For that, the following strategies can be considered:
Develop a Talent Management Strategy: The talent management strategy needs to be holistic. All areas of the employee lifecycle need equal focus. For example, the onboarding processes and reward strategies should be crystal clear. Policy-makers should also ensure a positive environment for gig workers.
Leverage Technology and Digital Platforms: The recruitment process should be streamlined effectively using advanced digital platforms. Modern tools often enable access to a broader talent pool and facilitate efficient matching of skills to project requirements.
Invest in Skill Development Initiatives: Gig workers benefit from training programs and skilled development resources. Access to these facilities also builds a more competent workforce and improves the quality of deliverables. Focusing on these areas ensures that leaders recruit and retain the best available talent.
Establish Clear Communication and Expectations: Building mutual trust and alignment between the organization and the gig workers is essential. For this, the communication needs to be transparent. Any expectations regarding the project and performance evaluation metrics should be disclosed clearly.
Ensure Fair Compensation and Benefits: Ethical employment practices and fair compensation/benefits structures form the foundation of an effective gig workforce. This also helps improve retention rates and attract top talent. Therefore, leaders should strategize related policies before beginning with the onboarding procedures.
Final Words
The gig economy is the future of the workforce in India. With more and more companies transitioning to this model, the potential for error is becoming increasingly larger even if the margin remains the same.
To mitigate the risks, leaders need to evaluate and implement strategies that begin with the recruitment itself. Systematic planning and action provide a degree of control and prevent costly mistakes.
Reference:
NITI Aayog. (2022, June). India’s booming gig and platform economy: Perspectives and recommendations on the future of work. In NITI Aayog.
An organization run by AI is not a futuristic concept. Such technology is already a part of many workplaces and will continue to shape the labor market and HR. Here's how employers and employees can successfully manage generative AI and other AI-powered systems.
Related Content
HR must always include human intelligence and oversight of AI in decision-making in hiring and firing, a legal expert said at SHRM24. She added that HR can ensure compliance by meeting the strictest AI standards, which will be in Colorado’s upcoming AI law.
The proliferation of artificial intelligence in the workplace, and the ensuing expected increase in productivity and efficiency, could help usher in the four-day workweek, some experts predict.
Learn how Marsh McLennan successfully boosts staff well-being with digital tools, improving productivity and work satisfaction for more than 20,000 employees.