The development sector, traditionally known for mission-driven projects that address global challenges such as poverty, conflicts, and food insecurity, is increasingly adopting practices that are reminiscent of the gig economy. Organizations in this sector frequently hire experts for specific roles within time-bound projects, raising the question, is the development sector now part of the gig economy?
Temporary roles in development projects
One of the defining characteristics of the gig economy is its reliance on short-term, project-based work. This is also evident in the development sector, where organizations often contract experts for the duration of a project rather than employing them on a permanent basis. These experts, with specialized knowledge in areas such as public health, education, and infrastructure, are brought in to achieve specific objectives. This practice mirrors the gig economy’s model of engaging freelancers and independent contractors for temporary engagements.
This trend is part of a broader shift discussed in a previous article, “The Gig Economy: Challenges and Advantages for Employers and Employees”, which explored how the rise of short-term, flexible work is transforming various industries. In that piece, the focus was on the implications for employers and employees in traditional sectors and now we extend that analysis to the international development sector.
Is development work now a gig?
The parallels between the temporary roles in the development sector and the gig economy are clear. Both involve short-term, flexible working arrangements, often facilitated by specialist recruitment platforms that connect organizations with the talent they need. In the development sector, platforms like DevelopmentAid serve a similar function to Upwork or Fiverr in the gig economy, allowing organizations to source experts for specific projects on a contract basis.
However, while similarities do exist, there are important distinctions. The development sector’s focus on mission-driven work, often funded by international donors or government agencies, adds a layer of complexity not typically found in the gig economy. The temporary nature of roles in development is often driven by the cyclical nature of project funding rather than by the same market forces that drive gig work in the private sector.
Implications for the workforce
The similarities between the short-term assignments in the aid sector and the gig economy have significant implications for both employers and workers. On the one hand, organizations benefit from greater flexibility and access to specialized skills without the long-term commitment of permanent hires. On the other hand, this trend raises concerns about continuity and institutional memory.
For the workforce, the increase in short-term, temporary roles in the development sector offers both opportunities and challenges. Recent statistics provide further insight into these dynamics:
- Employee preferences for remote work. Data from the European Central Bank indicates that around 60% of workers in the Euro area had never worked from home before the COVID-19 pandemic, but this changed significantly during and after the crisis. By May 2022, the majority of workers expressed a preference for continuing to work remotely at least one day per week, with a substantial number favoring two to four ‘remote’ days. This preference is mirrored in the international development sector, where flexibility is highly valued, especially given the sector’s global nature.
- A certain level of job insecurity. In the international development sector, many professionals work under short-term contracts due to the project-based nature of the work. This contractual structure is common in developing countries and is often associated with an insecure type of employment. A report from the World Economic Forum highlights that job insecurity remains a serious issue for workers globally.
- Lack of social benefits. The international development sector, especially for those working on short-term contracts or as consultants, often lacks access to traditional employment benefits such as pensions, health insurance, and paid leave. Recent data from the OECD highlights that workers in non-standard employment, which is common in the aid sector, are particularly vulnerable in terms of social protection. This group often does not have adequate access to pension plans which means that long-term financial security is a serious concern.
- Unstable work-life balance. According to the 2023 CIPD Good Work Index, a significant number of workers across various sectors, including development, report struggling to maintain a healthy work-life balance. This issue is particularly rife in roles that demand high levels of responsibility and involve working in challenging environments, such as crisis or conflict zones. The pressure to perform under such conditions often leads to burnout and a diminished quality of life.
- Mental health challenges. The Mind Share Partners’ 2023 Mental Health at Work Report highlights that mental health issues continue to be a major concern in many sectors, with development workers being particularly vulnerable due to the highly stressful nature of their jobs. The report indicates that workers in high-pressure roles frequently experience mental health challenges, with significant numbers reporting symptoms of anxiety, depression, and stress.
Final thoughts
While temporary roles can offer valuable flexibility and access to expertise, organizations should prioritize addressing the challenges posed by this shift, including the need for continuity, the well-being of their workforce, and the provision of essential benefits for staff. The question of whether the development sector is part of the gig economy may ultimately hinge on how these temporary roles evolve and how the sector adapts to the changing nature of work. As both employers and employees navigate this new landscape, finding a balance that addresses these challenges while maximizing the advantages will be key to the sector’s sustainability and success.
By connecting organizations with highly skilled professionals and providing insights into the latest trends in the sector, the DevelopmentAid platform helps both employers and job seekers to find the right fit in an increasingly dynamic and project-driven environment. Stay informed about future updates and receive fresh articles from DevelopmentAid Recruitment Solutions by subscribing to our LinkedIn page!