How To Use Modern Payments To Tap Into the Growing Gig Workforce
The gig economy is on the rise. However, gig workers also face certain financial challenges and stress. In this article, Brian Brinkley, CEO, QRails, discusses how modern forms of payment like earned wage access can help organizations attract gig workers.
The realities of the Great Resignation are shining a brighter light on the importance of gig workers. Gartner considers the gig movement so strong that it predicts by 2025, 35-40% of the workforce will consist of the gig, also known as contingent, workers. This is up from 15-25% today.
With employee expectations evolving, many more potential employees are seeking atypical working options that don’t revolve around a 40-hour (or more) workweek. Eventually, every company’s hiring strategy will need to become more flexible to ensure contingent workers are catered to because some of the best talent today is moving to this model. It’s critical for organizations to tap into the gig workforce to complement their existing staff and better attract non-traditional talent.
Do the Side Hustle
Gig workers want flexibility and freedom of choice, whether it’s fewer hours to meet family demands or working extra hours for a fatter paycheck.
However, there’s more to the gig worker persona than individuals seeking flexibility. Statista reports most gig workers also have full-time positions, which they’re supplementing with gig work. Further, Statista suggests there are 57.3 million U.S. freelancers who work between 11 and 30 hours a week.
Side hustles are a great opportunity for workers to connect with their respective passion projects, such as taking care of pets through Rover or delivering meals via DoorDash or UberEats. The temporary gig jobs range from a one-off retail store consultation project to a temporary week-long in-home eldercare position to a $100,000 corporate website redesign.
Positives and Negatives of Gig Work
So, how did gig get so big?
A larger shift in contingent workers, which includes freelancers, consultants, and temporary workers, occurred during the beginning of the pandemic when small- and medium-sized businesses began looking for more help to bridge the resourcing and talent gap as they juggled hiring freezes.
Advantages of working in the gig economy include flexibility of work and hours, a better work-life balance, trying a job on for size to know whether it fits and providing an alternative income stream.
The flip side, however, is that gig workers are more likely to have a higher Economic Anxiety Index score, which is a number describing a person’s financial stress, than those with traditional employment. Many gig workers fear how they will pay unexpected bills and have anxiety regarding financial insecurity. Gig work is sometimes unpredictable because of the short-term nature of assignments and typically provides no benefits.
Attract and Retain Using a Modern Way To Pay
However, by giving gig workers a different, modern way to get paid, that level of economic stress often decreases. For instance, earned wage access (EWA), also known as on-demand pay, enables the growing number of gig workers and employees to tap into a portion of their wages right after they’ve completed a shift. As such, EWA is a much-sought-after recruitment and retention tool.
The best EWA offerings also empower gig workers, employees and their families with innovative financial wellness solutions. Say, for example, a gig worker or an employee has a utility bill due in two days. If that person works today and tomorrow, he or she can tap into a portion of that pay, pre-determined by the employer, upon completion of those shifts. How this is done varies, but it can come in the form of a payroll card or an easy-to-use app that doubles as a financial planning tool.
This leads to less financial stress and, in some cases, the freedom to avoid costly credit card fees or payday loans.
See More: The Great Resignation: Retaining a Contingent Workforce in a Tight Talent Market
Freedom Through Financial Flexibility
Approximately 48% of employees surveyed by invoicing firm Skynova said flexibility in scheduling trumped salaries, while 39% of respondents indicated it was higher in importance than a raise. Inflexible schedules are one of the top reasons cited for workers considering leaving their job. However, while gig work provides much-wanted flexibility, finding that next short-term job and knowing the bills can be paid on time often leads to financial anxiety.
EWA can help ease money-related stress by providing potential employees and/or gig workers with the ability to tap into earned wages right after a shift. Such programs are intuitive and easy to use. They’re often free to offer. And they can very well make the difference between having enough workers to get the job done or not.
With burnout pervasive and quit rates climbing, the pandemic has prompted workers to reevaluate their work-life balance and values. And since it’s an employees’ rather than an employers’ market, providing financial flexibility through solutions like EWA helps HR professionals and their companies better seek, recruit and retain staff. This is true whether dealing with part-time, full-time or gig workers.
As an employer, it’s important to tap into the gig economy as needed to support your overall business, and it’s equally important to provide the same level of support to the gig workers you bring onboard.
How are you using modern forms of payment to attract the gig workforce? Let us know on Facebook, Twitter, and LinkedIn.
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