How To Adapt To The Economy Of Small Orders

The world has changed by leaps and bounds. In several respects, the pace of transformation is faster than our ability to assimilate it. One of the most puzzling changes is that of the so-called small order economy.

The Gig economy  or economy of small jobs is a new type of work. Its main characteristics are the recurrent use of short-term employment contracts, for small activities and according to the volume of demand.

In practice, this means that it is now increasingly rare to find stable and long-lasting jobs. Of course, in such conditions it is difficult to design medium and long-term life projects, since everything is always very uncertain.

For some, this is one of the most obvious forms of job insecurity. They are right. For others, an unstoppable dynamic to which most employers tend or will tend in the future. An irreversible change that forces vital projects to be given one more turn. They are also right.

The economy of small commissions

The small order economy model is ideal for employers. First, because they do not incur any social security expenses from their workers. Second, because this new modality allows them to respond strictly to the law of supply and demand, and not to the obligations imposed by labor legislation.

For workers the picture is different. In some cases it could be an ideal condition, as this would give them more independence. As long as you pay just enough for those odd jobs , it’s good business. Otherwise, it is a way of degrading your work and your income.

More than ever, work is a commodity today. Labor power is bought and sold at retail in the market. It is a modality that came together with technology and surprised many employees. The subject is debated.

Labor rights at risk

Most of those who are linked to this economy of small jobs do so because, anyway, it is better to have an income than to be unemployed and penniless. However, there are several institutions that are beginning to warn about the risks of this new model.

The International Labor Organization (ILO) has warned about this. He points out that the main risk is that this leads to a progressive loss of the labor rights conquered by the generations that preceded us. Also, of course, to a precariousness of the life of the workers.

The main bottleneck is that the economy of small orders has become a major source of employment. If it did not exist, perhaps there would be much more unemployment. This, in turn, is the worst form of precariousness in the life of a worker. It would seem a paradox that has no solution.

Adaptation to the new model

With technological changes and the new financial dynamics in the world, it is unlikely that we will return to the work model that prevailed in the past. In order to generate employment, entrepreneurs also need the market to offer them a certain security of growth. Thus, in many cases, companies have stopped working in a certain niche to do so for projects that are opened and closed, so that the points of uncertainty multiply.

However, this does not justify that the progress of employers and companies has to be based on degrading working conditions for the worker. It is clear that both the one and the other have to undertake a process of adaptation to the new conditions marked by technology and the immediate. Furthermore, this will also require modification of the legislation.

In the meantime, workers should promote active adaptation that takes into account the following points :

• The more sporadic the work, the higher the pay should be. If workers apply this criterion, employers will probably have to readjust their plans, taking this variable into account.
• Establish minimum rates for labor. Each one must calculate the minimum of his work per unit of time, taking into account the circumstances and the resources that the work requires. The idea is not to accept anything that is below that rate.

• Self-management. Those who work in this mode must plan their expenses including social security items and a savings margin for “downtime.” In this model, managing money well is a priority.

The watchword is to be flexible and open, but also to define limits. The theme of the economy of small commissions is surely going to continue and grow. In this sense, each one must analyze it and define the healthiest way to adapt and take advantage of this market dynamics.