While the gig economy is currently in the midst of booming, a challenge the economy is facing is how to make sure the trend can continue to thrive and grow, as more regulations come to the industry. The digital platforms we are surrounded by are what is growing the digital and gig economy every day. However, these have essentially gone completely unregulated in the past, so it’s only a matter of time before they are faced with more rules, and must determine new ways to innovate and create alongside them.
Good Data Practices
Recently, in the United Kingdom, parliament passed the General Data Protection Regulation legislation that went into effect this year to help prevent businesses from exploiting user data. In order to understand why this bill was passed, you need to understand the importance of good quality data practice. Good data practice opens up the door for companies and businesses to create more opportunities to build customer trust, and ultimately engagement, making them a win-win for everyone.
Another element of the gig economy facing new regulations is the actual labor being performed by the actual employees. Concerns in the past have geared toward labor exploitation and compensation. It also considers job security and how new AI developments may encroach on it. Regulations on labor could help remedy all of these concerns, in a way that works for everyone.
Alongside labor and data uses, the platforms that drive the gig economy could also be presented with new bills, standards, and innovations. An interesting idea includes the ability for workers to be able to align their profiles and ratings across all platforms they are involved in. This would allow the employee to carry over their hard work.
On the contrary, it would also provide employers with the ability to have a better understanding of an employee’s relationship with other platforms, and how their performance has been thus far, essentially augmenting them. The algorithms are possible, and could potentially improve user experience across the board.
Regulating the gig economy at its current state will be no easy task, especially because its expected to continue to grow. If the platforms driving the economy are going to be regulated, the regulators are going to need to be experts at understanding the economy, and the relationships people have with it.