Traditionally defined as those who engage in freelance, part-time, or short contract jobs, gig workers make up a substantial portion of the world's workforce. With the digitization of many companies that allow for remote work or flexible hours, the appeal of this type of employment continues to rise, accelerating into new territory with 2020's pandemic.
Benefits and challenges of a gig workforce
Tech giants like Uber carved out a massive slice of the transportation industry by creating a system that gave drivers the ability to create their own hours and manage their payments through the app. For companies and organizations that host events, like hotels or concert arenas, gig workers are contracted to take on individual projects, collaborating with internal teams for a defined period of time. In the office, gig workers are frequently support staff, like accountants, legal representatives, or graphic designers. This can be an ideal solution for small businesses with lean budgets or work that does not require full-time team members. By contracting a gig worker, employers are able to bypass financial obligations normally offered to full-time staff, like medical insurance and paid leave. In Dubai, employers may also pass on visa sponsorship, relying on freelancers to have their own DED license. Freelancers also benefit under the rise of the gig economy with the increased normalcy of remote work, severing physical ties to an office that offers flexibility in where they choose for their residence. The digital nomad trend has also spiked. Despite the current travel limitations imposed by the pandemic, more gig workers seek the benefits of travel and leisure as they stay plugged into remote jobs.
With this increased degree of flexibility for both employers and freelancers, several challenges have come to light that requires continued efforts to support this new work ecosystem. The nature of gig work leans on the side of temporary contracts, creating greater instability for employers who need to increase their time effort to recruit talent due to high turnover. For freelancers, gig work means little or no benefits, forcing them into individual expensive insurance plans and complete self-reliance for retirement savings.
The future of the gig economy in Dubai
In recent years, the Dubai government has increased its support of non-traditional work contracts and visas. Freelancers have the opportunity to sponsor themselves instead of relying on jobs offered by an employer through multiple types of local license packages. These options support a wide range of gig work, from professional business consultants to home-run businesses like online stores or services like photography. Navigating the often complicated route of paperwork and compliance, some Dubai business centers offer various services that ensure freelancers can receive credible licenses to live and work in the emirate. Serviced offices and co-working spaces also offer businesses or individuals flexible contracts, including all overheads, concierge services, meeting rooms, and more. By supporting and growing the gig workforce in Dubai, local businesses will see an influx of talent available for hire that meets their unique requirements.
Embracing change
Change is surely inevitable, but it can also facilitate growth and development when embraced. The events of 2020 propelled a fast-moving digitalized workforce ten years into the future in a matter of months. With Dubai as one of the best inventor markets in the world, this change to support an already bolstered gig economy will further support the city's status as the region's best place to live and work.