Professionals are shunning 9-to-5 routine, but with freelance work comes great uncertainty and the risk of being under-valued and underpaid for the jobs
After working as a graphic designer for over a decade, first with an advertising agency and then an IT services firm, 33-year-old Pranav Acharya decided to jump the “freelance’’ bandwagon.
The extensive commute, non-stop pressures of a full-time job and the monotonous five-day week have now made way for a schedule that meets his personal commitments as he works from home. But Acharya had to let go of certain monetary perks that a full-time jobs bring in. He says design projects come along in a haphazard fashion and payments are often “discounted’’.
“The price I quote for a project is always negotiated by the client and is cut by almost half. Despite my experience and the quality that I bring to the table, I feel that I end up earning much less than what I should. It seems as though every client wants to buy you cheap.” He says gig professionals have no choice but to ultimately go ahead, as “to decline opportunities means to go without work.’’
The gig economy has been growing steadily. A McKinsey study shows that 20-30% of the workforce in the developed markets is engaged in independent work. But as companies engage more with freelancers to optimise costs, such professionals are increasingly being under-valued and underpaid for their work. Lack of paid leave, career progression and healthcare or retirement benefits are other benefits they have to forego.
A study by Freelancers Union of the US states that income unpredictability is a top concern among gig workers. It reveals that 63% gig professionals dig into their savings at least once a month, compared to only 20% full-time and permanent professionals.
Purvi Sheth, CEO, Shilputsi Consultants, says, “Sectors having greater skill and talent will witness more underemployment among gig professionals. As freelancers, it is up to them to decide the quantum of work to take on. Several may not realise they are being under-utilised and have a higher potential than they acknowledge.”
Gig professionals are paid on a project or assignment basis. Experts say they often end up earning 30-35% less than what they quote, “which is not always a premium amount”, and payments are delayed months together.
Job experts advise professionals to check out the competitive landscape and value their work and experience greatly.
“Professionals should market themselves as valuable brands that are indispensable for companies. They should maintain efficiency in their work, time management and deliver results consistently. Creating a niche and specialising in skills that are in demand is another essential method for becoming an invaluable asset to companies,” says Zairus Master, CEO, Shine.com. He adds that professionals should proceed with a clearly defined pricing structure from the outset, “so that they do not find themselves unfairly compensated.”
Moreover, if clients do not want to pay the price you command, it is sometimes better to say “no’’, than to compromise, says Sheth. “This gives the impression that you will not allow yourself to be undervalued. If you come with recommendations and a strong track record, you will not be undermined.” Sheth advises that professionals should understand the market scenario and be reasonable. “If the service you provide can be easily replaced or if your expertise is not unique, then you need to benchmark with the market. You may feel undervalued, but if that is the market price, then you need to align.”
Companies have a role to play here, too. They need to reward gig workers just like they do their other employees, says Neha Bagaria, CEO and founder, JobsForHer. Bagaria says that companies should integrate gig professionals with full-time employees, establish lines of communication, encourage collaboration and ensure their work is covered by company policies. “This way, companies can be rewarded with a business that is more flexible, more immune to job market changes and more attractive to a wide range of talented people.”
GAMBLE WITH GIG
- Up to 35% less – Gig professionals are paid on a project or assignment basis, say experts
- 20-30% – Of workforce in developed markets is engaged in independent work, shows a McKinsey study
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