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Gig jobs surge as businesses turn to flexibility
https://www.whatjobs.com/news/india/gig-jobs-surge-as-businesses-turn-to-flexibility
By Nithya Bose in Business News, posted September 25, 2023
Businesses in India are adapting their workforce strategies, favouring gig jobs to optimise budgets and preserve capital.
A recent report from the human capital SaaS platform BetterPlace reveals Indian companies increasingly turn to gig workers to reduce frontline workforce costs.
It’s mainly because of the current economic downturn.
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The report highlights that while gig jobs have continued to thrive, permanent frontline positions have not experienced substantial growth.
The transition from FY22 to FY23 showed positive demand growth initially.
However, employers gradually decreased job openings.
It’s due to business slowdowns, losses, excessive hiring, and the costs associated with traditional hiring practices.
Many enterprises now seek to make their workforce costs more variable by adopting gig workforce management models.
In FY23, the number of new frontline jobs declined to 6.6 million from 8 million in FY22, marking a 17.5 percent decrease.
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E-commerce, which dominated frontline employment in FY22, witnessed a significant reduction in FY23.
The logistics, mobility, integrated facility management (IFM), and IT sectors have filled the gap.
They collectively account for over 61 percent of newly created jobs, as per the report.
Despite the shift in sectors, e-commerce remains a significant employer of female frontline workers.
The growing gig economy, however, has facilitated greater female participation in the workforce.
In industries like retail and warehousing, companies are actively recruiting more women gig workers due to their demonstrated efficiency and lower attrition rates.
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Additionally, businesses align with environmental, social, and governance (ESG) goals, encouraging female workforce participation.
Pravin Agarwala, co-founder and group CEO at BetterPlace, said: "In sectors like retail and warehousing, companies are looking to hire more women gig workers as hiring women results in better efficiency.
“Attrition in men is higher than in women. Besides, companies are focusing on ESG (environmental, social and governance) goals.”
Companies like Myntra have committed to hiring temporary female workers in supply chain and contact centers during festive seasons.
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