How The Gig Economy Is Changing The Investment Strategy Of Young People | Effects Of Gig Economy



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The gig economy is now everywhere – from our home deliveries of food and goods to the way we source our home help and taxi journeys, to the way we are employed and employ people ourselves.
Now, everyone thinks that the gig economy is a new phenomenon that started in the digital age. That’s not true. Avon pioneered the “gig” economy. They began 130 years ago. The company worked out that beauty products didn’t need the floor space overheads of a shop – or expensive marketing and advertising.

What it needed was a team of women – demonstrating and selling their line of products to other women in person. These women were not employed by the company but could tap into the product line and quality without committing to holding stock or having to work full time at sales. With flexible hours built around their communities and family time, working from home was a game-changer for Avon and their “ladies.”
Mary Kay, founded in 1963, followed the pattern started by Avon and is probably the best-known US version of an early gig company.

Flexibility on both sides

The attractions are obvious. For the employee, freelance or contract work means having a varied workload, often from different companies or sectors – or staying with one company on more flexible terms than a fully committed, salaried job. Along with this comes the ability to choose when to work – and where.

Disadvantages include not having sick pay or leave, no paid holiday or vacation entitlements, no funded maternity or paternity breaks – or medical, retirement, or death-in-service benefits.

For the employer, the attractions are more obvious. There is no long-term commitment to individuals’ employment and less demanding work contracts, no financial ties to ongoing training, health benefits, pensions, or vacation and maternity leave.



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