e-ISSN: 2582-5208

International Research Journal of Modernization in Engineering Technology and Science

( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:06/Issue:12/December-2024 Impact Factor- 8.187 www.irjmets.com

THE GIG ECONOMY AND HUMAN RESOURCE CHALLENGES

Dr. Usman Mohideen K.S*1, Krithiga T*2
*1Associate Professor, Sri Sairam Institute Of Management Sri Sairam Engineering College,
Chennai, India.
*2Scholar, Sri Sairam Institute Of Management Sri Sairam Engineering College, Chennai, India.
DOI : https://www.doi.org/10.56726/IRJMETS65736
ABSTRACT
The market that is based on a fixed-term contract or that is paid on a project basis by a business, third party, or
online marketplace is known as the "gig economy." The gig economy has a profound effect on the workplace
that is felt in many different areas. It has fundamentally altered how our economy functions and drastically
altered how individuals are engaged at work. Since many of the smartest and brightest people choose gig work
as their major source of income, the number of gig workers will continue to rise due to its unparalleled benefits.
This article discusses the challenges in human resources brought on by the new gig economy model, which is
one of the future trends that the gig economy is contributing to the market by analyzing various sources in
which the findings which emphasis that the gig economic model contributing to the recruitment strategies
,legal compliances ,performance metrics as a strategic recommendations for organizations to effectively
manage gig workers while ensuring seamless integration into their workforce .
Keywords: Human Resource, Gig Economy, Management, Social Development.
I. INTRODUCTION
The gig economy represents a significant shift from traditional employment models, characterized by short-
term, flexible, and freelance work arrangements. This economic model, driven by technological advancements
and changing workforce preferences, has grown rapidly over the past decade. As the gig economy continues to
expand, human resource management must adapt to new realities, requiring a rethinking of traditional HR
practices. The gig economy, characterized by short-term, flexible, and often freelance, represents a significant
departure from traditional employment models. Driven by technological advancements and shifting workforce
preferences, the gig economy has seen exponential growth in recent years. This transformation impacts various
aspects of employment, including job security, worker benefits, and management practices. As gig work
becomes increasingly prevalent, human resource management must adapt to address the unique challenges
and opportunities presented by this new modelThe widespread use of the internet and the growing prevalence
of smartphones have significantly enhanced global connectivity via digital platforms. This evolution has
allowed organizations to communicate their staffing needs and collaborate with remote online workers more
effectively (Healy et al., 2017). As a result, the gig economy has become increasingly significant in the modern
digital landscape.
The gig economy refers to a system where businesses hire independent workers for temporary tasks or short-
term projects (TechTarget, 2020). While traditional full-time employment has been the standard for decades,
economic disruptions and shifts in the labor market have left many individuals struggling to secure permanent
positions (Manyika et al., 2016). This shortage of stable jobs has encouraged many to pursue freelance or
contract work, leading to the rise of "gig workers," "independent contractors," or "freelancers."In developed
nations, some young professionals are choosing gig work as a lifestyle preference to avoid the rigidity of
traditional job structures. Meanwhile, in other countries, gig platforms provide an interim solution, offering
employment opportunities until individuals can secure long-term roles.As the gig economy continues to grow it
presents multifaceted challenges for (HR) management. conventional hour practices bear been historically
organized round regular employees focus along long employment vocation evolution and organizational
acculturation. In contrast gig workers often operate as independent contractors which complicates the HR
landscape in several key areas. i of the principal challenges is the enlisting and onboarding of lance workers.
Organizations must develop new strategies to attract and retain talent that is not only skilled but also aligned
with the project-based nature of gig work. this requires modern hour approaches that stress tractability and

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 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:06/Issue:12/December-2024 Impact Factor- 8.187 www.irjmets.com
reactivity to the active conditions of the lance economy another dispute lies inch sound deference and actor
sorting. The gig economy has raised questions about labor rights benefits and protections for gig workers as
many do not receive the same entitlements as traditional employees. encompassing misclassification of
workers arsenic free contractors quite than employees bear sparked sound debates and restrictive examination
inch different jurisdictions. HR departments must navigate these eities to ensure compliance with labor laws
while also considering the ethical implications of their employment practices. management and employee
engagement represent important areas where traditional HR frameworks may fall short.
The ephemeral world of lance be get back the organization of significant connections betwixt lance workers and
organizations devising it hard to furtherment and employment. HR professionals must explore metrics and
engagement strategies that resonate with gig workers who may prioritize autonomy and flexibility over
conventional career advancement. This research paper aims to investigate the interplay between the gig
economy and human resource challenges by synthesizing existing literature and empirical studies. it leave
search the name characteristics of lance be the implications for hour practices and the different types of roles
and industries smitten away this cut. the paper will examine the strategic recommendations for organizations
seeking to effectively collaborate gig workers into their workforce emphasizing the need for HR practices that
align with the unique characteristics of gig work. By addressing these challenges organizations can cultivate a
more inclusive and productive work environment that leverages both traditional employees and gig workers.
finally this search seeks to light the evolving world of be inch the lance saving and its sound implications for
man imagination direction pavement the room for sustainable increase inch amp apace dynamic drive
landscape painting. Through a comprehensive understanding of these dynamics organizations can better
prepare for the future of work optimizing their strategies to thrive in an increasingly gig-oriented economy.
II. REVIEW OF LITERATURE
 Definition and Scope of the Gig Economy The gig economy is often defined as a labor market characterized
by short-term contracts or freelance work as opposed to indelible jobs. according to de stefano (2016) the
lance saving encompasses amp wide array of be arrangements essentially reshaping how drive is organized
and paid.
 Wood et al. (2017) foster fancy along this away highlight the implication of digital platform inch facilitating
these lance jobs ### ii. Human supply Management (HRM) in the Gig Economy One of the primary
challenges HRM faces is adjusting traditional practices to accommodate gig workers.
 kalleberg and dunn (2018)reason that square hour practices organized for regular employees get not
employ in effect to the lance men.
 Berg (2018) points out that gig workers often lack access to the benefits and protections typically afforded
to traditional employees raising concerns about their status and treatment.
 Enlisting and onboarding challenges recruitment inch the lance saving requires modern strategies that draw
free gift. McKeown and Lindley (2018)highlight he importance of a compelling employer brand that
resonates with the gig workforce.
 The gig economy is expanding rapidly in India, with a growing number of young, educated professionals
joining prominent global freelancing platforms. By 2015, India had approximately 15 million gig workers,
making it second only to the United States, which had 53 million freelancers (Verma, 2018).
 The increasing popularity of gig work among Indian employers is largely due to its ability to enhance
efficiency, foster innovation, and create a competitive edge while minimizing human resource costs. Many
Indian freelancers are drawn to this model for its flexible work hours, the autonomy to be their own boss,
and the ability to select jobs based on personal interests and workload. Notably, 41% of Indian gig workers
are involved in Information Technology (IT) or related fields, serving both local and international clients
(Verma, 2018).
 The emergence of major digital outsourcing platforms has motivated skilled professionals from developing
economies to participate in the gig workforce. These platforms allow companies to access talent from
around the world at significantly lower costs compared to hiring in their home countries. However, this

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( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:06/Issue:12/December-2024 Impact Factor- 8.187 www.irjmets.com
creates challenges for gig workers, who must compete for assignments by offering competitive rates. To
succeed in this environment, gig workers need to be adept at managing their time, maintaining strong client
relationships, meeting deadlines for international clients, and adapting emotionally to working with clients
from diverse cultures and geographic regions (Ashford et al., 2018)
 Graham et aluminium. (2019) suggest that HR must develop robust systems for onboarding gig workers that
are efficient and effective given the transient nature of gig employment.
 Digital intermediary platforms play a vital role in bridging the gap between gig workers and clients,
facilitating project delivery and payment processes without requiring formal employment contracts
(Meijerink & Keegan, 2019).
 These platforms simplify the process for freelancers to find jobs or projects online. Stephane Kasriel, the
CEO of Upwork, the largest freelancing platform globally, highlights that one key driver of the rise in
freelancing is the hiring activity of large corporations. He notes that 30% of Fortune 500 companies now
utilize major freelancing platforms, with technology companies being prominent recruiters on these
platforms (Pofeldt, 2019).
 .Sound and deference problems the sorting of lance workers clay amp aggressive effect inch drive police. De
Stefano (2019) highlights the legal ambiguities surrounding gig work specially regarding employee benefits.
bala et aluminium. (2021) provide an overview of regulatory frameworks across various countries
illustrating the challenges HR faces in ensuring compliance.
 operation management effectiveness direction inch the lance saving poses alone challenges. Cohen et al.
(2021) maintain that conventional operation metrics get not get the contributions of lance workers in effect.
Kauffman advocates for more flexible and dynamic assessment methods that align with the expectations
and realities of gig work.
 Factor employment and organizational culture fostering employment among lance workers is relevant for
organizations. Kässi and Lehdonvirta (2022)note that the lack of attachment to an organization can lead to
lower engagement levels among gig workers. baker et aluminium. (2022) argue for the development of a
"gig culture" that embraces flexibility while also promoting a sense of community among workers.
 Important adjustations for hr to answer to the challenges posed away the lance saving organizations have
accommodate their hour strategies. Duggan (2022) suggests that HR must embrace tech to streamline
methods and improve communication with gig workers.
 Huws (2022) highlights the take for organizations to arise policies that know the alone necessarily and
preferences of lance workers ### cardinal. Future Directions in Research The gig economy is still evolving
and many aspects remain under-researched. schneider et aluminium. (2023) call for further studies on the
psychological impacts of gig work on individuals while Friedman (2023)fosters explorations into the long-
term implications of gig work on career trajectories
III. EVOLUTION OF GIG ECONOMY
 Early stage -The Early Days (Late 1990s - Early 2000s)]The origins of the gig economy can be traced to the
early 2000s with the emergence of online platforms such as Uber, Airbnb, and Upwork. These platforms
enabled individuals to offer services on a freelance basis, leading to the proliferation of gig work. Key factors
driving this shift include advancements in digital technology, which facilitate the matching of supply and
demand, and changing worker preferences for greater flexibility and autonomy. According to Sundararajan
(2016), the gig economy represents a departure from traditional employment models, characterized by its
reliance on digital platforms and temporary, task-based workThe gig economy, characterized by short-term,
flexible work arrangements, has witnessed a meteoric rise in recent decades. This shift has profound
implications for human resource management (HRM) practices, necessitating organizations to adapt their
strategies to accommodate the unique challenges and opportunities presented by this new paradigm.
 The On-Demand Revolution (Mid-2010s)The evolution of the gig economy can be traced back to the advent
of digital platforms that connect workers with clients or employers on a project-by-project basis. Early
examples include online marketplaces like eBay and Etsy, which facilitated freelance work in various fields.

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International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:06/Issue:12/December-2024 Impact Factor- 8.187 www.irjmets.com
However, the proliferation of ride-hailing services like Uber and Lyft, as well as task-based platforms like
TaskRabbit, marked a significant turning point, popularizing the concept of on-demand work.The gig
economy has been driven by several factors, including technological advancements, economic globalization,
and changing workforce expectations. The internet has enabled seamless communication and collaboration,
making it easier for individuals to work remotely and connect with clients worldwide. Economic
globalization has also contributed to the rise of the gig economy, as organizations seek to reduce costs and
increase flexibility by outsourcing tasks to independent contractors. Moreover, the younger generation of
workers, often referred to as "digital natives," have grown up in a technology-driven world and are more
open to flexible work arrangements.
 The Gig Economy Goes Mainstream (Late 2010s - Present)The emergence of the gig economy has presented
both challenges and opportunities for HRM. On the one hand, organizations can benefit from increased cost-
efficiency, scalability, and access to a global talent pool. By engaging gig workers, companies can avoid the
overhead costs associated with full-time employment, such as benefits and payroll taxes. Additionally, the
gig economy offers organizations the flexibility to scale their workforce up or down based on demand,
reducing the risk of overstaffing or understaffing.On the other hand, the gig economy poses significant
challenges for HRM. One of the key issues is the lack of traditional employer-employee relationships. Gig
workers are typically classified as independent contractors, which means they do not have the same rights
and protections as employees. This can lead to concerns about job security, income stability, and access to
benefits. Moreover, managing a geographically dispersed workforce of gig workers can be complex,
requiring effective communication, collaboration, and performance management tools.

 Another challenge is the difficulty of building a strong organizational culture and employee engagement
among gig workers. Unlike traditional employees, gig workers may have limited interaction with their
clients or employers, making it harder to foster a sense of belonging and loyalty. Additionally, the transient
nature of gig work can make it difficult to establish long-term relationships and develop trust.
 To address these challenges, organizations must adopt innovative HRM strategies that are tailored to the
unique needs of the gig economy. This includes developing clear guidelines for engaging gig workers,
ensuring fair compensation and benefits, and investing in tools and technologies that facilitate effective
communication and collaboration. Additionally, organizations should focus on building a strong brand and
reputation to attract top talent in the gig economy.

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International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:06/Issue:12/December-2024 Impact Factor- 8.187 www.irjmets.com
IV. TRENDS IN GIG ECONOMY AND HUMAN RESOURCE CHALLENGES
1. Increased digitalisation and program proliferation- with the arise of digital platform care uber, fiverr and
upwork the lance saving is increasing on the far side conventional boundaries. These platforms streamline
the hiring methodand improve the visibility of gig workers. hrm practices are adjusting to this cut away
leverage engineering for enlisting and on-boarding methods focus along information analytics to the trump
gift and check skills with cast requirements
2. Focus on Worker Well-being and Engagement- Gig workers often report feelings of isolation and a lack of
support. companies are offset to know the grandness of actor employment strategies. HR practices now
higligh tcreating communities among gig workers offering virtual webing opportunities and providing
supply’s for skill development. arsenic berg (2016)suggests nurture associate in nursing comprehensive
acculturation get raise work atonement and memory among lance workers cardinal.
3. Legal and Regulatory Developments- As the gig economy grows regulatory frameworks are evolving to
address the rights and benefits of gig workers. governments inch different countries including bharat are
drawing policies to check clear reward approach to benefits and work certificate. HRM must adjust to these
changing legal landscapes by revising contracts ensuring compliance and advocating for workers’ rights
within organizations.
4. Shift towards crossbreed be representations-many organizations are adopting crossbreed be that trust
conventional work with lance be. This trend allows companies to maintain flexibility while providing
stability for workers. hrm is tasked with reconciliation the necessarily of both regular employees and lance
workers ensuring just discourse and nurture co action over the men
5. Skill Development and Continuous Learning- As industries the demand for skilled labor in the gig economy
has increased. hrm is immediately focus along perpetual acquisition and evolution opportunities for lance
workers. Companies are investing in up skilling programs and initiatives to the capabilities of their gig
workforce ensuring they remain competitive in a rapidly changing job market.

6. Diversity and comprehension initiatives- the lance saving attracts amp different run of workers including
freelancers part-timers and those quest back incomes.
HRM is recognizing the importance of diversity and inclusion applying policies that promote equitable
opportunities for all workers irrespective of their employment status. numerous companies are actively quest
to make different lance teams which has been shown to raise creativeness and cardinal. -Driven Decision
Making, The gig economy vast amounts of which HRM can leverage for better decision-making. away utilizing
analytics hour professionals get value actor operation call trends and get knowledgeable decisions vis-a-vis
men strategies. This information-driven approach can lead to more effective talent management and allocation.
The gig economy presents both challenges and opportunities for Human Management. arsenic this sphere
continues to develop hour practices have accommodate to play the necessarily of amp different being and
fostering inclusive environments organizations can successfully navigate the and active men. By embracing
technological advancements focusing on worker well- of the gig economy and overall productivity. prospective
search need keep to search modern hour strategies that get in effect back lance workers spell positioning with
organizational goals
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International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:06/Issue:12/December-2024 Impact Factor- 8.187 www.irjmets.com
V. CHALLENGES FACED IN HUMAN RESOURCE
 Challenges Faced by Human supply Management in the Gig Economy- The rise of the gig economy has
altered traditional employment presenting unique challenges for human (HR) management. the pitch from
perpetual regular positions to versatile short gigs requires hour professionals to pilot amp compound
landscape painting defined away clear challenges.
These challenges can be broadly categorized into employee engagement legal compliance challenges inch the
lance saving is maintaining employee employment. Unlike traditional employees who are embedded within an
organizational culture gig workers operate on a freelance or contractual basis often lacking a sense of
belonging. this withdrawal get run to less levels of need and employment. According to Kalleberg (2018) gig
workers frequently job dissatisfaction due to their limited connection with the organization. hour professionals
have arise modern strategies to further employment among lance workers such as arsenic creating practical
communities offer master evolution opportunities and credit programs to raise their feel of comprehension and
motivation
1. Legal and Compliance ** Legal and compliance challenges are prominent in the gig economy due to the
ambiguous classification of workers. the note betwixt free contractors and employees get importantly affect
drive rights benefits and protections. Wood et al. (2019) spotlight that misclassification get run to sound
disputes and restrictive examination. Different jurisdictions have varying regulations adding for
organizations operating across multiple regions. hour departments have abide aligned of evolving drive
torah and check deference with regulations relevant to reward benefits and actor protections. This requires
continuous of legal developments and HR policies to align with regulatory requirements.
2. Gift management effective gift direction inch the lance saving presents alone difficulties. Traditional HR
practices such as recruitment evaluation and retention are often ill-suited for a transient and diverse
workforce. cottam (2020) points away that lance workers often round inch and away of projects devising it
hard to plant long relationships and care operation in effect. HR professionals must devise new approaches
to recruitment leveraging tech to identify and attract suitable gig workers. operation direction systems have
work modified to value the operation of individuals world health organization get but work with the system
for light periods developing strategies to retain top gig talent despite their inherent mobility is essential for
maintaining a competitive edge.
3. Organizational integration -integrating lance workers into present organizational structures poses different
dispute. Gig workers often lack access to the systems as employees which can lead to discrepancies in and
productivity. huws (2019) highlights that without amp light frame for coaction and communicating lance
workers get fight to array with organizational goals .HR professionals need to mechanisms to gig workers
into teams effectively ensuring they have the tools and support necessary to meaningfully. this get affect
establishing light lines of communicating provision approach to pertinent and nurture amp collaborative
surround that includes both perpetual and lance workers
4. Information Security and Confidentiality - he above challenges security and confidentiality are increasingly
significant. lance workers much take approach to tender party to do their tasks lift concerns around
information security and good place. HR departments must have robust security and ensure that gig
workers understand and adhere to confidentiality agreements. In conclusion the gig economy introduces
several challenges for HR management including related to employee engagement legal compliance talent
management organizational integration and security. addressing these challenges requires amp important
access incorporating modern practices and policies bespoke to the alone necessarily of amp lance men. As
the gig economy continues to HR professionals must remain and proactive in developing that effectively
manage the of this new labor representation.
5. Diversity and Inclusion -Ensuring diversity and inclusivity in the gig workforce can be challenging,
especially given the varied backgrounds of gig workers. ILO. (2021). World Employment and Social Outlook
2021: Trends 2021*. This report discusses diversity challenges in the gig economy and the implications for
HRM practices.

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International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:06/Issue:12/December-2024 Impact Factor- 8.187 www.irjmets.com
6. Data Privacy and Security-The reliance on digital platforms raises concerns about data privacy and security,
particularly related to personal information of gig workers.Gunter, B. (2019). *Privacy, Surveillance, and the
Gig Economy*. This article addresses the importance of protecting worker data in the gig economy and the
implications for HR practices. The gig economy presents unique challenges for Human Resource
Management that require innovative strategies and policies. HR professionals must navigate the
complexities of worker classification, benefits, performance evaluation, and engagement while ensuring
compliance with evolving regulations. Continuous research and adaptation will be essential for
organizations to effectively manage the gig workforce and create a supportive work environment.
VI. KEY FINDINGS AND OUTCOMES OF THE RESEARCH
The gig economy which contributes to the overall development and prosperity of the industries that develop
the workforce and nationwide development that the study identified various areas on the evolution in the gig
economy and the human resource as an part of the short term or the freelancing source of the gig economy
faces certain issues in the current scenario that leads to various strata of problems identified and needed to be
overcome in the forecoming structure of the gig economic model
1. Recruitment Strategies: Organizations that utilize diverse recruitment strategies including social media
and freelance platforms are more successful in attracting gig talent.
2. legal compliance: companies take to place inch sound expertness to pilot the compound landscape painting
of lance actor regulations which get change over regions
3. Effectiveness Metrics: Establishing clear effectivenes metrics and maintaining open lines of communication
can improve the productivity of gig workers.
4. Engagement initiatives; applying initiatives care community constructing events or online forums get
service further amp feel of belonging among lance workers
5. Tech utilization : Investing in operator -friendly platforms that easecollaboration between gig workers full-
time employees can improve productivity and infomation security.
6. Employee Engagement: Gig workers often experience lower levels of engagement and job satisfaction
compared to traditional employees. HR strategies must include innovative approaches to foster engagement
and a sense of community.
7. Legal Compliance: The classification of gig workers remains a contentious issue, with varying regulations
across jurisdictions. HR departments must stay informed about legal developments and ensure compliance.
8. Talent Management: Managing a gig workforce requires new strategies for recruitment, performance
evaluation, and retention. Flexibility and adaptability are crucial for effective talent management in this
context.
VII. CONCLUSION
The gig economy brings both opportunities and challenges for HR professionals. As the nature of work
continues to change, HR practices must evolve to meet the specific requirements of gig workers. This involves
creating innovative strategies for engagement, compliance, and talent management. The findings of this study
highlight the importance of HR professionals being proactive in addressing these challenges while staying
updated on emerging trends and best practices. Future research should further investigate the changing
dynamics of the gig economy and provide practical guidance for HR professionals working in this ever-evolving
landscape. Digital platforms play a pivotal role in fostering the growth of the gig economy, especially in
developing countries and remote areas worldwide. The gig economy offers numerous benefits to workers,
including flexible working conditions, opportunities to work in areas of interest, and access to global job
markets. However, while the Internet-based gig economy has brought substantial advantages to both
businesses and individuals, it has also introduced management challenges. For HR managers, these challenges
encompass various aspects, such as managing declining employee loyalty, overseeing a diverse and complex
workforce, ensuring fair and just mechanisms to protect the rights of gig workers, and fostering an
organizational culture that aligns with the organization’s goals and values. Addressing these issues requires
managers to adopt greater agility, prepare for new forms of employment relationships, and strike a balance
between the interests of the organization and its stakeholders. By leveraging the benefits of the gig economy
and mitigating its challenges, organizations can pursue collaborative and sustainable growth.
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