Graduates and the Future of the GIG Economy in Malaysia
The term “GIG” was commonly associated with musicians who are employed on a one-off show or a temporary short-term contract performance. Today, it has taken the employment world rapidly and has been the most preferred choice of employment among our graduates. GIG allows young graduates huge flexibility and allows them to take up multiple jobs in a given period of time. In line with the current interest of graduates, GIG is highly attractive to those who are tech-savvy.
GIG Economy Jobs
GIG economy is a term coined by the former New York editor Tina Brown way back in 2009. After 10 years it got traction, thanks to the pandemic that changed many people’s life. Originally, it was to answer the need to employ white-collar jobs as well as to engage consulting/professional service firms. Why do companies need to hire people when there are many qualified individuals out there who can execute similar tasks with equivalent standards? At some point, you can also gather a group of experts globally connected on a digital platform to address the issue.
However, at the initial stage, GIG employment did not attract the knowledge worker segment; instead, the unskilled segment showed tremendous growth. These jobs include e-hailing (Uber, Grab, etc.) and delivery (GrabFood, Foodpanda, Lalamove, etc.).
This unexpected attraction was then explained by the works of Nobel Laureate Ronald Coase on transactional cost. He pointed out that transactional cost is a crucial element that explains why a firm exists and grows. In this context there is no need to engage with firms for unskilled jobs when there are low costs to find alternative providers. In other words, when there is simple, standard, repetitive work which is easily measured and controlled, the cost will be low. This explains why more unskilled jobs were successful in GIG platforms.
Why are current graduates inclined towards the GIG economy?
Graduates need to be equipped with skills associated with GIG-related jobs, namely interpersonal skills, time management, networking, problem-solving, and negotiation. These are basic skills that can be easily acquired during their study period. They don’t require much skill or training; however, they are developed during their study period and already incorporated into their course learning outcomes. Thus, graduates find it easy to fit themselves into the GIG ecosystem.
The current generation prefers freedom and flexibility. They prefer getting their job completed within a given timeframe. They do not like long-term commitments and jobs that drag into long periods, especially affecting their weekend. The present generation prefers freedom; they do not want to be instructed or given orders. Having high job control gives them personal satisfaction, allowing them to perform better. The older generation likes to be in fixation and prefers high certainty. However, the present generation loves flexibility in their task. Flexibility allows them to be creative and in control of their self.
Next, giggers want to have control over whom they want to work. They want options and alternatives which allow them to make their own decision. The decision may be personalised, however they don’t want others to decide for them. Similarly, the present generation also decides whether they want to engage with the same clients. They should value and evaluate their experience before considering another assignment with the same clients. There are certain determinants that affect the decision; among others, jobs must satisfy their passion and interest. They would be engaging into something that is not giving them some sort of satisfaction. It would be merely a one-time experience. Notably, the current graduates are less inclined toward office politics, and if possible, they would avoid it. The least they would engage is to please no other than their bosses.
When the above-mentioned criteria are notably seen among our current graduates, the most suitable occupation is to be a gigger. They have good control over themselves and over what tasks they are performing to earn their living. There is no conflict within themselves, allowing them to perform the task freely and willingly. In the context of the earlier argument and the inclination of the present graduates, it indicates tasks that don’t require high skill. Tasks can be readily performed without needing specialised training at any point in time.
Next is to look at the potential of skilled jobs in GIG economy platforms. This will benefit many graduates by allowing them to embark on careers in the field they have specialised in. In turn, this will also allow the job creator framework to materialise, where many would also turn solopreneurs into entrepreneurs who would engage employees to deliver their agreed-upon responsibilities.
Can skilled jobs fit the GIG economy?
The future of GIG employment in Malaysia needs to be restructured to facilitate more skilled-based tasks to ensure better employment opportunities and better quality services are rendered for the benefit of all. We can divide the skilled job in gig work as follows:
- Medium-skilled: This would involve tasks that require some level of skills, such as graphic design, content creation, and website development. They would enjoy better bargaining power, negotiate better wages, and have less competition. They mostly showcase their talents, but some may also do it because of their passion.
- High-skilled: This would involve high-level skills, including consultation. They are engaged because they are experts or possess the required skills (which are rare). They would enjoy high bargaining power, high wages, and lesser competition. In this context, leveraging their skills (expertise) is more important than their talents or passion. It allows them to expand networks and enjoy autonomy at work.
As the next phase of development in the GIG economy, graduates need to be ready to face the rapid changes in how tasks are delivered. Giggers need to acquire and ensure their skill levels are relevant to the current context. This includes their job-related, digital, soft, and entrepreneurial skills. They need to adapt fast to the changes in technology, how the market behaves, and customer preferences. This will also require them to be able to market their expertise, master negotiation contract skills, and manage their finances well. Specifically in finance, they may think they are operating in a lower operational expenditure situation without considering other unexpected expenditures that would affect their bottom line. When working with diverse and remote teams as well as remote clients, the need to master communication, collaboration and problem-solving skills are key to provide quality customer service.
When skilled jobs are in the gig platforms, the entrepreneur must be clearly aware of their company/start-up’s legal status. In this context, the establishment of the company needs to be legally established, unlike unskilled tasks that operate as an individual. Next, it would also have tax implications, including preparing tax documents for their skilled employees. When all this happens, the business needs to comply with all relevant labour laws and regulations, which include Social Security and Employee Provident Fund requirements. This, in turn, would need them to operate within the legal framework identically to how traditional businesses operate today.
One advantage of the skilled job being in a gig platform is increasing the access and involvement of marginalised groups which includes women, youth, people with disabilities, and minorities. The GIG arrangement allows more flexibility and autonomy. However, it can also work the other way by pushing them to work for lower wages, poor working conditions, and abuse. It is important that better policies are formulated to facilitate inclusivity and diversity practices in the gig economy. The policies should include equal employment opportunity and pay equity, among others.
The GIG economy is an upcoming powerful trend of occupation that brings a revolution in how jobs will be done not only in Malaysia but also globally. This new approach to employment opportunity challenges the traditional employment models that have been around for a long period of time. It promotes innovations in all aspects and allows marginalised groups to contribute to ensure high-quality job standards are offered equally. Professionals have the liberty to work independently in a highly competitive environment. Undoubtedly, the GIG economy drive has been transforming the Malaysian workforce. There is no choice, as the need to pursue careers, businesses and societal deals with employment in the digital era is key to staying relevant. This transformative force is real, and it will continue to shape the future of work and inevitably have an impact on our lives, which we can’t imagine. It is here to stay for all blue, grey and white-collar workers. We have no choice but to face the challenges and embrace the opportunities to create a flexible, diverse and inclusive future workforce. Thus, it is imperative that Higher Education Institutions (HEIs) understand the trend and inculcate the culture of GIG economy employment to our future graduates so that we can minimise the rejection and increase the assimilation for a better transition.
Chandrakantan Subramaniam, PhD is a HRD Corp Thought Leader with the National Human Resource Centre (NHRC) and a Professor of Human Resource Management at Universiti Utara Malaysia. He is currently the Director of the Centre for University-Industry Collaboration (CUIC), Universiti Utara Malaysia.
The views expressed here are entirely the writer’s own
