Gig Economy and employment - Danish development model !!.

 

One of the beauties of technology and its participants is that they don't hold back when it comes to improving itself. It happens with new technologies, that small advances show big changes. This case concerns integrating the Danish employment system and the Gig Economy cluster. This is how they have created “a bridge between the employee and the interests of digital companies.” That's right, it seems logical for a traditional employment system; but it is not for the Gig Economy, until now!

                                                                         

The Danish digital platform in question, Hilfr, provides cleaning services to its clients, and “proper tax payments, good hourly pays and decent working conditions” (Etuc, 2023) to its collaborators. Based on two plan systems for suppliers, Basic Profile (freelance) and Super Profile (Hilfr direct employees). Both with the benefits and obligations established by the government and interesting upgrades for experience in the cleaning industry, for the “Super Profile”.

                                                         

                                                                        Hilfr ApS.

Until now it is a common relationship between a company and stakeholders, collaborators, or employees. The difference lies in the nature of both actors. On the one hand, Gig collaborators can carry out work activities, recognized and regulated by the government. On the other hand, digital companies can establish defined parameters in their relationship with service providers.

As we mentioned in our previous blog, many of the legal responsibilities of the Gig employee fall on them, in terms of taxes, insurance and pensions. Under this model, automatic tax declaration is put into practice. (Etuc, 2023). This is one of the milestones of the model since it allows the recognition and integration of the sector by the government. That is, everything is well-controlled and standardized. This is what the 3F, the Danish trade union, is requesting to support the model with the government, already implemented and fully operational. (Hilfr, 2023).

                                                          

                                                     United Federation of Danish Workers.

To round off and think outside the box. We could see the entire supply chain of this market, not only from the employee's point of view. We could look at the generation of digital platforms with local social and economic impact. A kind of insourcing, empowering the local Gig market, thus giving flexible and free opportunities to new formats of growing talent. Finally, I can realize that the digital trend will no longer be in new algorithms; but rather how technology is put at the service of people, to improve opportunity and well-being. If the Danes did it, everyone can, because the business model is available in the experience of the Hilfr company.

Reference:

Etuc. (2023).  Historic’ deal for platform workers in Denmark. https://www.etuc.org/en/historic-deal-platform-workers-denmark

 

Hilfr. (2023). Hilfr's agreement with 3F. https://hilfr.dk/om-super-hilfrs

The Gig Economy – From the clouds to the numbers.

Author: HRReporters, Canada.

Source: Numbers of Gig Workers Double in 2022.

Okay, now that we know what The Gig Economy refers to, let's move on from this ethereal and somewhat volatile world, the cloud, to the numbers related to employability. If you don't know, here I leave you the link. Let's start!

The gig economy in Canada has experienced significant growth, with 28 percent of Canadian adults, or approximately 8.75 million people, now participating in gig work. This is a substantial increase from 13 percent in 2022. (HRD, 2023). Most of these gig workers, about 74 percent, consider their gig work a side hustle in addition to their primary source of income.

Interestingly, over half of these gig workers, 51 percent, have not informed their employers about their side hustle, while the remaining 49 percent have made their employers aware of their additional gig work, according to H&R Block Canada's survey. This suggests that there is a lack of transparency in many cases, and it is also understood that these jobs are carried out outside of the main working hours.

The prevalence of multiple job holding is also on the rise, with nearly 79 percent of remote employees having worked two or more jobs simultaneously over the past year. Also, 8 out of 10 remote employees have a double job, known as “Moonlighting or Overemployed”. (Dexter Tilo, 2023). While it's not a legal requirement to declare a second job to one's employer, it is advised to maintain trust and transparency. From this point of view, it is highly advisable to establish, for both your current and potential employers, your intention to take on a second job to ensure everyone is on the same page and to avoid any surprises in the future.

The cost of living is a growing concern for Canadians, with 85 percent expressing worry that their income is not keeping pace with increasing living costs, as revealed by H&R Block Canada's survey. This financial strain has led to almost two-thirds of gig workers taking on a side hustle due to the rising cost of living and inflation. Additionally, 15 percent of Canadians are considering taking on a side hustle in the future, and 20 percent have already taken on gig work to increase their income in the past year.

As in any work activity, legal responsibilities are also present in this market. The appreciated flexibility of hours and independence place certain responsibilities in the hands of the Gig workers, which, if not met, may come with potential legal consequences. H&R Block Canada reports that nearly half (49 percent) of those engaged inside hustles are willing to risk not declaring all their related income, while 44 percent are willing to risk not declaring any of their side hustles income. This could lead to penalties imposed by the Canada Revenue Agency (CRA). (Canada Revenue Agency, 2023,) highlighting the importance of financial transparency. This is because Gig Workers are considered self-employed, in terms of taxation. Which is completely logical and close to any job responsibility with monetary income.

Despite the gig economy's prevalence and the potential financial benefits, it offers, only 33 percent of Canadians are feeling positive about their financial situation. Once again, related to the increase in the cost of living, and by the way, inflation. This indicates that while gig work is on the rise, it may not entirely address the broader concerns about Canadians' financial well-being.

Just as a reminder, work activities must be declared in taxation terms. However, the flexibility and independence that the Gig economy provides allows you not only to obtain extra income, but also to develop skills related to a new market, as a service provider, or as a service contractor.

 

Personally, I believe that opening opportunities to new markets is a possibility that technology does not currently bring. At other times it will have been other technologies, such as production machines, new logistics processes, or administration systems. In this era, digitalization is a driving force of the economy, in a transversal way. Markets such as E-commerce have flourished with impressive numbers, giving the opportunity to overcome important barriers for any entrepreneur. For example, being able to access remote sales or services, access logistics services, and in general any point in the supply chain, is available to be hired. I find interesting, too, the credibility that surrounds The Gig Economy. It was always like this. Each time behaviour related to the stability and progress of employees and companies has been altered or evolved, there has been uncertainty. The new production lines of the 1900s may have terrified employees as they saw employment decline. However, some learned to use them and became essential to produce in any factory. Finally, I believe that we should not be afraid of new technologies; rather, we have to stay informed about how it can be beneficial for people, for society and for companies.

 

Reference:

Human Resource Reporte. (2023, March 06). Number of gig workers doubles in 2022. KM Business Information Canada Ltd. https://www.hrreporter.com/focus-areas/compensation-and-benefits/number-of-gig-workers-doubles-in-2022/374149

Dexter Tilo. (2023, February 8). How many remote workers have two jobs?. Human Resource Director. (HRD). https://www.hcamag.com/us/specialization/employee-engagement/how-many-remote-workers-have-two-jobs/435607

Canada Revenue Agency. (2023, March 8). Gig economy. (CRA). https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/platform-economy/gig-economy.html