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Is Your Employee Doing Side Work?

Is Your Employee Doing Side Work?

by | Sep 25, 2019 | Blog

Is your employee doing side work? Employees work side hustles to earn extra income in their off-time and these are the types of side jobs they’re taking on.

Is Your Employee Doing Side Work?

It’s called a “side hustle.” And, the latest research shows about one-third of U.S. employees, approximately 57 million people, are working side hustles to earn extra income. 

Should traditional employers be concerned about an employee doing side work, also known as “moonlighting?” Maybe, and for a variety of reasons. Perhaps the most important: More than 80 percent of Americans who currently have a side hustle are interested in doing it full-time, according to a recent SunTrust survey. 

Are your employees doing side work? If so, what job(s) are they doing and how much are they making? 

What Work Is Your Employee Doing On the Side?

AppJobs recently analyzed applications for side gigs to determine what the most popular side hustles are and how much they pay. The most popular side hustles are jobs that don’t necessarily require previous work experience, particular skills, or a degree, but still pay fairly well. Here are the top five most popular side gig categories according to the data gathered by Appjobs:

  1. Delivery (105,314 applications) pays an average rate of $17.10 per hour
  2. Freelance (95,866 applications) pays an average rate of $25.33 per hour
  3. Petsitting (21,620 applications) pays an average rate of $13.17 per hour
  4. Cleaning (14,143 applications) pays an average rate of $11.29 per hour
  5. Driving (11,199 applications) pays an average rate of $14.36 per hour

“Hundreds — maybe thousands — of companies are making it easy for Americans to make extra money,” says Kathy Kristof, an award-winning journalist and editor of $idehusl, a website that reviews and rates online platforms that offer ways for people to make money on the side.  “We’ve researched, rated and reviewed more than 300 of these online platforms. Where Uber and Lyft get miserable scores with our formula, there are probably 100 platforms that provide engaging, well-paid opportunities that could provide $500 to $2,500 per month in additional income. These opportunities involve teaching, cooking, creating tours, writing, programming and renting out everything from your carpet cleaner to your swimming pool.”  

Which Generation Makes the Most Money from Side Work?

The SunTrust survey looked at how much individuals in each generation demographic make working a side hustle and found:

  1. Millennials make an average of $10,972 from working a side hustle each year
  2. Gen Xers make an average of $8,791 from side work each year
  3. Baby Boomers make an average of $5,892 from side work  each year

“Millennials often take on side hustles because they’re not earning enough to pay off their student debt and still have a life. Baby Boomers, who are retiring (or near retiring), are in the market because they feel like they’re not quite financially stable enough to leave the working world without some other way to make money,” says Kristof.

Should Employers Worry About an Employee Doing Side Work?

“Smart side hustlers are using their extra income to pay off debts and boost savings. That makes them a bit more confident about their ability to withstand a job loss. So, if their bosses are mean and miserable, they’re in a better position to walk away,” says Kristof. 

“That said, what side hustles don’t give you are employee benefits and a work community. If an employer has a great benefits package and a positive, supportive working environment, most people won’t leave that — even if they have a side hustle.”

If you do notice a spike in your turnover rate, however, Kristof advises, “Ask yourself: How is my company faring in this changing workforce? Are we a place where people want to work, or are we just a place to collect a paycheck?”

“If you are nothing but a paycheck, you should worry — or, better, change. Ask yourself if you have tools in place to encourage your best workers to thrive. Are you talking to your workers? Do you know what they want/like/need from you? Are you listening? The freelance economy is bringing a sea change in the workforce. Those who are smart enough to adapt are likely to thrive.”

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Office Dress Code Policies in Today’s Workplace

Office Dress Code Policies in Today’s Workplace

by | Sep 18, 2019 | Blog

Office dress code policies in today’s workplace. Where should employers draw the line? Are ripped jeans, leggings, or open-toed shoes acceptable at work?

What is an appropriate dress code policy for 2019? Randstad US surveyed employees to find out.

“The nature of work — where, when and how it gets done — has changed dramatically over the past several years, and many of those changes (open offices, remote work) have ultimately contributed to a less formal workplace,” said Traci Fiatte, CEO, non-technical staffing, Randstad US. “It’s great to empower your employees to dress for their day, as well as show their personality, but it is equally important for employers to set some clear guidelines to ensure that everyone feels comfortable.”

Office Dress Code Policies in Today’s Workplace

The bulk of employers’ dress code policies (79%) are either business casual (26%), casual (33%) or non-existent (20%). 

While workwear has become more casual overall, most employees are in agreement that there is a limit to what workers can get away with wearing. 

More than 70 percent of workers agree that ripped jeans aren’t appropriate workwear, even in a business casual setting. Over 50 percent feel the same way about leggings. Half of the employees Randstad US surveyed believe very high heels (over three inches) look unprofessional and 40 percent said the same thing about open-toed shoes of any kind.

Nearly 40 percent of employees who are 25 to 35 years old admit they’ve been asked to dress more professionally by their manager or the HR department. 

“There’s an interesting disconnect around younger workers: most associate dressing up with more confidence and better work performance, but nearly 40 percent also report they’ve had a manager speak to them about dressing more professionally,” said Fiatte. 

“The bottom line is, as long as employees dress in a way that’s consistent with their employer’s policies, most managers care less about what their employees wear than about their performance and work output.”

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Baby Boomer Retirement Statistics and Financial Stress

Baby Boomer Retirement Statistics and Financial Stress

by | Sep 17, 2019 | Blog

Baby Boomer retirement statistics and financial stress. Their chief concern is retirement savings but they have other sources for their financial stress, like healthcare costs and emergency savings.

Baby Boomers, those between the ages of 59 and 75, still make up a significant portion of the U.S. workforce, despite many having hit retirement age. As one of the largest generations in history, Baby Boomers are faced with their own set of unique financial stressors. 

Retirement savings are the most obvious concern for Baby Boomers, 54 percent of whom report losing sleep over money issues. In addition to stress over retirement savings, however, Baby Boomers are also worried about having a robust emergency fund in the case of unexpected expenses and they’re also stressed about rising healthcare costs. 

Baby Boomers Emergency Savings Stress

The recommended amount for an emergency fund is six months worth of expenses, but a whopping 20 percent of Baby Boomers have less than $5,000 in personal savings, according to Northwestern Mutual’s Planning and Progress Study. This leaves them woefully unprepared for any unexpected expenses, such as a medical emergency or loss of employment. 

Further, one-third of this generation find it difficult to meet their household expenses on time each month, and nearly 60 percent would not be able to meet their basic expenses if they were out of work for an extended period of time.

Healthcare Costs Hinder Financial Wellness

Healthcare costs are rising at a rapid rate, and Baby Boomers are particularly susceptible to the increases. Those 65 and older spend 41 percent or more of their average Social Security income on health care — a number that is expected to rise to 50 percent within the next decade. This means that Baby Boomers need to be saving even more as they approach retirement — more than one-third of them say healthcare costs were their biggest worry regarding retirement. 

A large portion, 27 percent, of Baby Boomers, report that lower healthcare costs would most help them achieve their future financial goals, making healthcare a top concern. 

Retirement Savings and Baby Boomer Financial Stress

Finally, stress regarding retirement is the most significant financial stressor facing Baby Boomers, as most are concerned about not being able to retire when they want to. About 40 percent are also worried about running out of money while in retirement, and that same percentage have less than $50,000 saved towards their retirement funds. 

More than half of Baby Boomers are planning to delay their retirement for a variety of reasons, but the most commonly cited are that they haven’t saved enough, don’t want to retire yet, have too much debt or need to keep the healthcare coverage offered at their jobs. These concerns regarding retirement make it clear that simply having a 401(k) set up is not enough to aid employees in their retirement planning. 

Baby Boomers note financial matters as their main cause of stress, and they are the most likely to take advantage of workplace financial wellness programs, like Best Money Moves, to alleviate their stress. Best Money Moves is a mobile, gamified and easy-to-use financial wellness program. It provides practical, unbiased help so employees can make smarter financial decisions and manage the debt they have.  

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If you want to learn more about how Best Money Moves can bring financial wellness to your company download our whitepapers and sign up for a demonstration here.

Employee Financial Wellness Statistics 2019

Employee Financial Wellness Statistics 2019

by | Sep 9, 2019 | Blog

Employee financial wellness statistics 2019. New research looks at the spillover effect financial stress has on employee productivity.

Greetings,

New research by Morgan Stanley highlights the impact financial wellness has on employee productivity. 

Nearly four in five employees (78 percent) with high financial stress say that they are distracted by financial stress at work and it’s not just workers with lower incomes. More than half of employees with household incomes greater than $100,000 say debt and unexpected expenses are still sources of stress. More than 40 percent of them stress about having inadequate savings.

The statistics on how employee stress impacts productivity are important, but the most surprising finding was the demand for financial wellness programs and how they could increase job satisfaction and retention.

Employee Financial Wellness Statistics 2019

Here are the three most startling statistics about the financial stress employees experience:

  1. 50 percent of employees spend more than they earn each month.
  2. 37 percent of workers say they have more debt than they can manage.
  3. 41 percent of them say they don’t have enough savings to cover three months of living expenses.

According to the report, “Debt, unexpected expenses and inadequate savings are among the most significant sources of financial stress for employees.”

“While long-term savings and planning are the most often-cited needs, employees also need help with short-term goals like budgeting, managing debt and emergency savings.”

Employees Ask for Financial Wellness Benefits

Fewer than one-third of workers have access to financial wellness, but the third that do are putting them to good use. Forty to 60 percent of those with financial wellness benefits have used them in the last three years. Here are the two big takeaways from employees without access to financial wellness benefits:

  1. 60 percent of employees would be more likely to stay at a job if their employer offered financial wellness benefits.
  2. 71 percent of workers would be comfortable discussing financial matters at work with a financial professional unaffiliated with their employer.

Communication is key for any benefits offering, but more than 40 percent of employees don’t feel adequately informed about the benefits and programs their employees offer. How can employees better communicate benefits? Employees cited a clear explanation and easy access as the two most important factors that would make them more likely to use a benefit.

Financial wellness programs that give employees direct access to the personalized tools they need to dial down their financial stress, like Best Money Moves, can help organizations improve their productivity, retention and job satisfaction. 

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What the Multigenerational Workforce Needs From Employers

What the Multigenerational Workforce Needs From Employers

by | Sep 9, 2019 | Blog

What the multigenerational workforce needs from employers. Millennials, Baby Boomers and Gen X need a personalized financial wellness program to reduce financial stress.

In today’s rapidly evolving workplace, you’ll likely need specially designed strategies to keep up with the various needs of your multigenerational workforce. From Millennials to Baby Boomers to Gen X, each generation has specific financial goals and pain points. To best help these employees, you need to understand which areas impact their wellbeing the most.  

Financial Wellness Is Top Priority for Multigenerational Workforce

If you want to prepare your employees for what’s to come, Millennials and Gen X say that better job security is the number one thing that would most help them achieve their financial goals, according to research by PwC. When asked the same question, Baby Boomers are largely looking for lower healthcare costs. 

Providing resources to promote employee financial wellness can improve workplace retention. Two in five Millennials and Gen Xers say their loyalty to their company is affected by how much the business cares for their financial wellbeing, and at least 75 percent of people surveyed in both generations say they’re more likely to be attracted to a different company that cares more about their financial wellbeing. 

Multigenerational Workforce and Financial Stress

As the cost of living rises and wages struggle to keep up, employees are also having a tougher time keeping up with their day-to-day expenses. Fifty-seven percent of Millennials and 50 percent of Gen Xers say its difficult to meet their household expenses each month, an increase of 17 and 11 percent from last year respectively. 

As you may well know, student loans are a rising financial concern for younger generations, particularly Millennials. Nearly half of all Millennials have student loans, and of that group, 80 percent say that their educational debt has a moderate or significant impact on their ability to meet their financial goals. To combat this problem, 37 percent of employees rank a student loan repayment benefit as their most desired employee benefit they’d like to see added in the future.

One thing every generation can agree on is that more employees than ever report they are stressed when dealing with their financial situation. There has been a double-digit percentage increase (ranging from 15-23 percent across generations) in the number of employees who reported financial stress since last year.  

Financial wellness programs like Best Money Moves can help. Best Money Moves is mobile, gamified and easy-to-use. It provides practical, unbiased help so employees can make smarter financial decisions and manage the debt they have. 

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If you want to learn more about how Best Money Moves can bring financial wellness to your company download our whitepapers and sign up for a demonstration here.