How sustainable will this concert culture be?

Organizational culture in the business world is undergoing a paradigm shift. This change has been underway since digital began to change the culture of work. The Covid-19 pandemic has only accelerated the transformation from permanent to concert.

The forces of globalization and technology have made it imperative for organizations to be agile, in order to withstand rapidly changing consumer preferences and competition. Peter Drucker once said, “Culture eats strategy for breakfast. True to these words, successful organizations today prioritize the culture within them. Business leaders who are at the forefront of innovation often credit their organizational culture when introducing new products and services. The “work standard”, which is an integral part of the work culture, is in fact essential to the success of the organization. But will she be disrupted by the booming gig economy?

Tina Brown, the former managing editor of The New Yorker, coined the term “gig economy” and defined it as “a bunch of floating projects, consultants, and part-time chunks as they transacted on a digital market. Although casual labor is an old concept, the roles and expertise of this workforce are evolving. Gig workers are actively involved in specialized roles that are crucial to organizational strategies.

The concept of on-demand economy is supported by the technological revolution and the changing tastes and preferences of customers and their expectations for faster delivery of products and services. In order to respond to these changes and drive innovation, organizations need to have highly skilled professionals.

The gig economy has grown significantly over the past few years and even more so with the outbreak of Covid-19. According to statistics elucidated in a McKinsey report, there is a growing trend in the gig economy:

  • 79% of full-time freelancers said they were happier working alone than in a traditional job.
  • 75.7% wouldn’t quit their gigs for a full-time job.
  • 63% of freelancers think having a diverse client portfolio is safer than just one employer.
  • 60% of addicted gig workers have no other job because they don’t want or need it.
  • 57.3 million freelancers in the United States It is estimated that by 2027 there will be 86.5 million freelancers.
  • For 44% of gig workers, their work in the gig economy is their main source of income.
  • 41% of on-demand workers say they were hired because they have unique skills to complete an ad-hoc project.
  • 36% of American workers participate in the gig economy through their primary or secondary job.
  • High-income freelancers with incomes of $100,000 or more who work in highly skilled fields are growing steadily.
  • Three-quarters of executives highlighted the importance of gig workers in supplying available scarce skills and 91% say this will be the case three years from now.

Challenges faced by the Gig culture:

What cannot be denied, however, is that for all the recent proliferation of the gig economy, this new culture has some downsides. According to a report on the economic well-being of American households in 2018, among those who work on demand for their main source of income, 58% cannot manage unexpected expenses, compared to 44% of those who work on demand for additional income. . Edison’s research indicates that 80% of gig workers struggle to pay for unexpected expenses. 63% of full-time gig economy workers draw more often on savings, compared to 20% of full-time employees. 45% of gig workers have an anxiety index above 50, compared to just 24% of those employed but not in the gig economy.

The whole world has been influenced by the phenomenon of the gig economy and we can definitely see India being significantly influenced.

  • Delhi added 560,600 people to its gig economy in the six months to March 31, an 88% jump from 298,000 people in the first half of fiscal 2019. The gig economy, led by food delivery companies Swiggy and Zomato, and transportation companies Uber and Ola, thrive largely without regulation, even as drivers and delivery people work with little job security and few benefits.
  • A 2019 report from NobleHouse, a platform that connects companies with skilled HR talent, found that 73% of its respondents wanted to opt for freelance work over conventional full-time employment.
  • Up to 72% of all gig projects were for large corporations and professional services firms in 2018-19, up from 52% two years ago.
  • India is home to the second largest market of freelance professionals (around 15 million) who account for around 40% of the total freelance jobs on offer globally, according to the ICRIER report Future of Work in the Digital Era: Potential and Challenges for Online Freelancing and Microwork in India.
  • A 2017 EY study on “The Future of Jobs in India” found that 24% of global gig workers come from India.

Japanese organizations have revolutionized “Kanban” i.e. supply chains with the concept of just-in-time manufacturing and the dot-com revolution to transform the entire economy with e-commerce. Today, around the world, the culture of work is changing as organizations seek to manage costs effectively and improve agility through a more flexible workforce.

The question of the sustainability of gig culture will be determined by important factors such as the inexorable march of digital technology, market disruptions and the agility of the gig workforce. For now, concert culture is here to stay.



The opinions expressed above are those of the author.