Dear Friends,
Informalization of Employment
Yes! It is very much here and penetrating. With the rising gig economy in India, informalization of employment is much faster compared to other parts of the world. Social life driven by technology, along with new generation preferences, has fueled it as it has brought fundamental changes in the way we work. The emergence of the gig economy is a clear departure from formalization 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 raises certain questions that need to be answered by all concerned. Who are gig workers? Why do they prefer this kind of work? How is this economy going to benefit businesses, workers, and society at large? What are the side effects of this economy? Is 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. workers, unemployed or underemployed youth unable to secure salaried jobs struggling to make out daily earnings - whatever name we use, it is a class of people who either, due to the 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. Businesses are certainly going to benefit from this work culture by supplementing the skills of the existing workforce, reducing costs, and filling temporary vacancies with reduced remuneration.
For gig workers, it may be attractive for the time being, but in the long run, it may create social imbalance, dissatisfaction, and insecurity. Because neither are such workers protected by present employment regulations nor do they have any health or social benefit coverage. They are stripped of social and health security. Apart from this, the possibility of exploitation of such a working class cannot be ruled out unless the government wakes up and starts noticing this working class and establishes 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 must be ensured that the most vulnerable workers are not exploited. On the other side, this economy may be good for people who, after completing a long stint in formal employment, choose to enter this market.
HR professionals need to find answers to the questions, create a fine balance between business needs and gig workers' growth with welfare and social security.
The September 2019 edition cover story is on this emerging trend where experts attempt to find answers to intriguing questions and make a roadmap of the future talent pool.
If you like it, let us know. If not, well, let us know that too.
Happy Reading!
regards,
From India, Delhi
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182Informalization of Employment
Yes! It is very much here and penetrating. With the rising gig economy in India, informalization of employment is much faster compared to other parts of the world. Social life driven by technology, along with new generation preferences, has fueled it as it has brought fundamental changes in the way we work. The emergence of the gig economy is a clear departure from formalization 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 raises certain questions that need to be answered by all concerned. Who are gig workers? Why do they prefer this kind of work? How is this economy going to benefit businesses, workers, and society at large? What are the side effects of this economy? Is 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. workers, unemployed or underemployed youth unable to secure salaried jobs struggling to make out daily earnings - whatever name we use, it is a class of people who either, due to the 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. Businesses are certainly going to benefit from this work culture by supplementing the skills of the existing workforce, reducing costs, and filling temporary vacancies with reduced remuneration.
For gig workers, it may be attractive for the time being, but in the long run, it may create social imbalance, dissatisfaction, and insecurity. Because neither are such workers protected by present employment regulations nor do they have any health or social benefit coverage. They are stripped of social and health security. Apart from this, the possibility of exploitation of such a working class cannot be ruled out unless the government wakes up and starts noticing this working class and establishes 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 must be ensured that the most vulnerable workers are not exploited. On the other side, this economy may be good for people who, after completing a long stint in formal employment, choose to enter this market.
HR professionals need to find answers to the questions, create a fine balance between business needs and gig workers' growth with welfare and social security.
The September 2019 edition cover story is on this emerging trend where experts attempt to find answers to intriguing questions and make a roadmap of the future talent pool.
If you like it, let us know. If not, well, let us know that too.
Happy Reading!
regards,
From India, Delhi
Acknowledge(0)Amend(0)
Dear Mr. Anil,
I have recently superannuated from Grasim Industries Ltd from the position of Unit HR Head (Vice President - HRM). I am based in Noida, running a consulting firm and working as a freelance writer.
You are doing a noble job by developing awareness in the industrial world for the betterment of the nation. Thank you for your thought-provoking ideas and proactive support for gig workers.
Regards,
From India, Delhi
Acknowledge(0)Amend(0)
I have recently superannuated from Grasim Industries Ltd from the position of Unit HR Head (Vice President - HRM). I am based in Noida, running a consulting firm and working as a freelance writer.
You are doing a noble job by developing awareness in the industrial world for the betterment of the nation. Thank you for your thought-provoking ideas and proactive support for gig workers.
Regards,
From India, Delhi
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