NEW APPROACHES IN HRM

5 Gig Economy Was created by the Millennials and Gen Z. Gig Economy can be defined as a work engagement where on one side, there is a service seeker i.e. a consumer with a demand for a specific task, and on the other side, and there is a service provider i.e. a gig worker who can perform that specific task. In this economy, tech-enabled platforms connect the consumer to the gig worker to hire services on a short-term basis. Gig workers include self-employed, freelancers, independent contributors and part-time workers. This project-based gig economy allows the service adopter to cut overhead costs, and the gig worker to get paid for a specific task performed instead of receiving a fixed salary. Thus, a shift from a full time 9-to-5 job to an on-demand, freelance and task-based economy can be termed as gig economy. The digital gig economy generated a gross volume of approximately $204 billion from worldwide customers in 2018. Transportation- based services contributed to over 50% of this value. The size of the gig economy is projected to grow by a 17% CAGR and generate a gross volume of $455 billion by 2023. India has emerged as the 5th largest country for flexi-staffing after US, China, Brazil and Japan. The McKinsey Global Institute mentions that digital platforms for labour could increase US GDP by 2.3% as well as its full-time equivalent employment by 2.7% by 2025. Due to the rapid developments in technology, the transaction cost for outsourcing non-core activities is reducing and facilitating an increase in the number of tasks which can be performed by each worker. Thus, firms are shrinking in size and we are witnessing a rise in start-ups which are outsourcing many activities to expert service providers on a contractual basis. EMPLOYEE EXPERIENCE (CONSUMERIZATION OF HR) Delivering differentiated and satisfying customer experiences can lead to a boost in loyalty, market share and revenues. Imagine what a similar focus on employee experiences could mean for the business? Leading companies are already recognizing that the employee experience is the new battleground for competitive advantage. The next step is to apply what they know about customer experiences to build superior employee experiences that drive employee engagement, retention and productivity. For most companies, the customer experience - which is how a consumer finds, perceives, purchases and interacts with a company - is top of mind. It drives research in the quest for insights. It dominates their marketing and operations department’s days and nights. And it shapes their advertising, e-commerce and customer service strategies.