The gig economy is empowerment. This new business paradigm empowers individuals to better shape their own destiny and leverage their existing assets to their benefit.
-John McAfee, Founder of McAfee
Last year the global Gig Economy reached USD 4.5 Trillion. The rise of the Gig Economy has been catapulted by the emergence of two-sided marketplaces like Upwork, Fiverr, YOSS, Axiom, etc. In 2018, the B2B Human Cloud (two-sided market places for labor for organizations) USD 4.5 Trillion
The reasons behind the rise of the two-sided market places can be attributed to the following factors:
Two-sided marketplaces redefining the role of HR
Aside from payroll management, traditionally, the role of HR teams has been restricted to risk mitigation and taking reactive measures- addressing employee issues, resource planning, etc. The need for reskilling employees at a faster pace has also expanded their role to management and planning of L & D (Learning and Development) of the resources. With the rise of two-sided market places, HRs today have the opportunity to widen their role to a more strategic one and delivering quantifiable results for businesses by taking care skills gap of an enterprise in an optimized cost.
Key factors that make a two-sided labor marketplace successful
Some of the factors which should be considered while creating such market places are:
Emerging technologies that will redefine two-sided market places
Several technologies like Artificial Intelligence, Machine Learning and Blockchain can have an impact on reshaping the future of the two-sided marketplaces.
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AI/ML will play a critical role in resource profiling, finding matches basis skills, recommendations, etc. As technology evolves users will expect to get more customized experiences and AI/ML will be instrumental in providing that.
Blockchain with its shared ledger system can play a role in building a transparent and secure model for such market places.
“My father had a job in his life, I will have six jobs during my life, and my children will have six jobs at the same time. —Robin Chase, Founder of ZIPCAR ”
(A quote from the book by Diane Mulcahy, The gig economy: The complete guide to getting a better job, having more free time and finance the life you want!)
With the changing attitude of the current workforce towards a job, Gig Economy and two-sided market places are here to stay. In fact, the Gig Economy is expected to reach 50.9% by 2027. In this scenario, we are sure to see the transformation of work to a more flexible, efficient and cost-effective system.
**Some of the excerpts and information mentioned in this article have been referred from my article on Gig Economy published reach 50.9% by 2027.