The traditional 9-to-5 model has long defined employment, offering financial stability, lucrative benefits such as housing and healthcare insurance and a clear career growth trajectory. However, the gig economy is rapidly changing the narrative as it also promises flexibility, independence and better earning potential as compared to traditional employment. But should we embrace the gig economy as the new reality or will it prove to be unsustainable and leave workers vulnerable. We shall try to analyze the nature of both models and determine their potential impact on the workforce.
The gig economy allows workers to choose the work they prefer, be it freelance or contract jobs, rather than committing to traditional employment. Platforms such as Upwork and Fiverr have embraced the gig economy which has granted many workers employment. Proponents of the gig economy highlight its various advantages such as its flexibility to work in any preferred location and schedule. It also enables income diversification through multiple gigs, reducing reliance on a single employer. Additionally, there are minimal barriers to entry since most of the gigs require minimal qualifications and experience, making it easy to start earning quickly.
Despite its benefits, gigs come with its own challenges such as inconsistent paychecks. This is because some of these jobs fluctuate between high season which is characterized by a surplus of available jobs and low season which is characterized by a deficit of available jobs on the market. Unlike traditional employment, the gig economy does not guarantee safety nets such as health insurance or retirement benefits. Also, its low barriers of entry attract high competition among workers which forces workers to continuously reinvent themselves so that they can have competitive advantage.
Traditional employees are guaranteed a stable income since they receive a monthly paycheck which guarantees their financial stability. Employees also receive housing allowance, health insurance, paid leave days and they are able to join trade unions where they are protected by laws and are guaranteed that their rights will be upheld. Traditional employment also guarantees a clear and structured career growth which also creates a sense of purpose and stability for the employees.
However, it has its trade-offs such as rigid schedules where you are required to report and leave the office at specified times. Although some companies have embraced a hybrid workplace, others still require their employees to report to the office everyday of the week. Even though traditional employment has a structured and clear career path, career advancement requires years of climbing the career ladder which may reduce the motivation of the employees. Some roles are very strenuous in nature which may eventually lead to the employee being burnt out due to high stress and limited flexibility.
The future of work depends on whether the gig economy tackles its shortcomings. Workers who value flexibility and autonomy are drawn to gigs while those seeking financial stability and security are drawn more towards traditional employment. Companies rely on the gig economy because they are cost effective and adaptable, but they still rely on full time staff for consistency and experience. From an economic view, a hybrid model which integrates the benefits of the gig economy and traditional employment is the most suitable path to lead.
Traditional employment cannot be entirely displaced; however, it is evolving. The gig economy is very appealing; however, it has its own shortcomings. The future of work is about integrating flexibility with financial stability and security.
