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5 Key Insights About the Gig Economy in 2024

5 Key Insights About the Gig Economy in 2024

by | Mar 26, 2024 | Blog

5 key insights about the gig economy in 2024. Gig work now makes up a significant portion or the American economy. Here are 4 key takeaways and trends from the gig economy in 2024.

The term “gig economy” refers to the collection of workers who receive income from short-term contracts, side hustles and freelancing. According to McKinsey’s American Opportunity Survey, 36% of respondents identified as independent workers, representing nearly 60 million Americans.

Gig workers now comprise a significant and ever-growing portion of the U.S. workforce, with many participating in the gig economy in addition to other, full-time employment. These workers offer unique perspectives on the nature of part-time work and are redefining what’s possible when it comes to building a career.

Here are 5 key takeaways from the gig economy in 2024.

A fact about the gig economy in 2024

1. The gig economy is dominated by immigrants and Gen Z workers

The benefits of working as a freelancer are attractive to a younger generation. Those in Gen Z tend to be more tech-savvy, utilizing the internet as a marketing tool to promote their talents and offerings, leading to an influx of younger workers. Around 70% of Gen Z respondents consider freelance work a viable full-time career option, according to survey data from Fiverr. Another 41% of Gen Z respondents felt freelancing was a good way to increase their income amid economic uncertainty.

The gig economy is also highly attractive to first-generation immigrants. According to the same McKinsey survey data, nearly half of all surveyed immigrants participate in the gig economy. This type of work may be particularly attractive to immigrants as it often offers a lower barrier to entry and can be a helpful stepping stone to pursuing full-time employment.

2. Flexibility is king

Many gig economy employers allow employees to set their own hours, attracting employees away from more traditional jobs with the promise of increased flexibility. According to Financial Executives International, 63% of freelance workers cited flexibility as the number one reason they chose to enter the gig economy.

This flexibility is important to employees in more than just their schedules. One of the bigger draws of gig work is getting paid quickly and outside of a typical pay period structure. According to a survey by HRO Today, Almost 4 in 10 gig workers get paid immediately when their job is finished, as opposed to a more structured payout.

3. The majority of gig economy workers are not attempting to replace a full-time income

The point of adding on freelance work for many gig employees was not to replace full-time employment but rather to supplement their income to help pay for household bills and other expenses. According to that same survey by HRO Today, as many as 1 in 4 workers either do their gig work simply because they like it, or because they want to be more intentional with their spare time.

The growth in the gig economy is paired with the increase of interest in “side hustles”, a popular strategy to combat inflation and address rising costs. Gig work may help alleviate concern for employees to have a steady stream of income while within a fast-changing and rapidly evolving economy.

4. Many workers see their gigs not as the final step, but as a gateway to opportunity

Gig economy participants tend to be more optimistic about their future job prospects than full-time employees. According to the American Opportunity Survey by McKinsey, over 33% of gig workers say that they expect to have more economic opportunities in a year, as opposed to 20% of full-time employees.

This optimism is likely well-placed as the demand for gig positions only continues to grow across the U.S. A report by the World Bank found that the demand for gig work increased 41% between 2016 and 2023. If you are looking to start a financial wellness initiative in your business, try Best Money Moves.

5. Gig economy workers increasingly want better benefits

Due to the competitive nature of the gig economy for both employers and contractors, the availability of benefits can be an important factor for people choosing where to work. According to Financial Executives International, only 8% of female gig workers hold a pension plan. Pre-pandemic benefits such as health insurance and sick leave were considered as a trade-off to flexibility in permanent employment.

However, since 2020, there has been an increase in flexibility allowed by those positions especially seen with the increase of remote work. Companies that employ these freelancers are always trying to gain an advantage in hiring, and providing benefits offers a significant one.

To learn more about Best Money Moves Financial Wellness Platform, let’s schedule a call. Contact us and we’ll reach out to you soon.

Top 3 Hiring Trends for 2020

Top 3 Hiring Trends for 2020

by | Dec 18, 2019 | Blog

Top 3 hiring trends for 2020. How employers are planning to expand recruitment efforts to attract and retain the right talent in a tight labor market.

Employers are ready to pay up to combat the skills shortage in the new year. 

More than 80 percent of employers are ready to offer higher salaries for sought-after candidates and give pay raises to ensure their current staff is happy, according to the third-annual hiring trends report by Hays, a global recruitment firm. 

“It’s encouraging to see such employer confidence and motivation in the face of market uncertainty but they should consider that money on its own may not be the long-term solution to skill deficits and employee dissatisfaction,” said David Brown, CEO, Hays US. 

Top 3 Hiring Trends for 2020

Hays drew from a national survey of more than 3,500 employers and employees across the U.S. for their latest report. Their findings identified three major hiring trends for 2020:

1. More Flexibility

Nearly 35 percent of employers offer no flexible work options, but that percentage is likely to drop in the next year. More than 50 percent of employers are working on adding the ability to work remotely. Almost 40 percent are investing in flexible work hours. 

Hays notes that unlimited vacation time and free childcare are also growing in popularity, but are implemented on more of a case-by-case basis.

2. Career Development

Over 20 percent of employees are considering leaving their current role because of limited opportunities for career growth. 

“It’s an incredibly competitive job market and employers have to focus on bigger picture aspects of work if they want to achieve their business goals,” added Brown. “People expect to do more than punch a clock. They’re looking for meaning, a vibrant culture and to be united with their colleagues under a shared purpose. Employers who understand this fact will be better-suited in the 2020 fight for talent while nurturing their current team.” 

3. Health and Wellness Focus

Close to 60 percent of workers say they have no health and wellness activities through work. Providing healthy snacks and space where employees can rest and reset on their breaks is investing in the health and wellbeing of employees. 

Employers can also remind employees when it’s time to get flu shots, when open enrollment starts, and have someone available to review healthcare benefits and out-of-pocket costs to help them better understand changes each year. 

If you’re not convinced that sending a reminder can make a difference, read about how a reminder the IRS sent out to those who paid a fine for failing to have health insurance may have saved 700 lives. 

More on Recruitment and Hiring Trends for 2020

Health and Wellness Benefits Insights for 2020

Top 10 Employee Benefits for 2020

5 Must-Have Benefits for Millennial Employees

Hiring Trends to Watch in 2020

4 Big Employee Benefit Trends for Family Planning

Employee Experience 2020: 4 Key Aspects for High-Performance

Recruiting Trends 2020: Top 5 Features for Financial Wellness Programs

What Benefits Do Employees Want in the New Year?

What Benefits Do Employees Want in the New Year?

by | Dec 20, 2018 | Blog

What benefits do employees want in the new year? Employees want benefits that support employees’ diverse needs like transgender-inclusive healthcare benefits, fertility assistance and pet perks.

Over 30 percent of employers increased their benefits in 2018, according to research by the Society for Human Resource Management (SHRM), a trend likely to carry over into 2019 as employers continue to wrestle with low unemployment.

Healthcare benefits have been a hot topic this year, but healthcare regulation is in flux and as costs soar across the board, cost-management has become a priority. According to the International Foundation of Employee Benefit Plans (IFEBP), employers are looking to solutions like telemedicine, nurse advice lines and healthcare claims utilization analysis to help rein in expenses. Wellness programs that help employees improve physical, emotional and financial health have also skyrocketed in popularity as another way to manage burgeoning healthcare costs.

New healthcare benefits are going to be equally important in 2019. Employees have a wide range of needs and company culture/inclusivity are factors that future candidates are likely to take into consideration when evaluating job offers.

Employers have started to meet the demand for diversified healthcare benefits. The IFEBP found nearly 30 percent of employers now offer transgender-inclusive benefits, like coverage of sex-reassignment surgery or subsidies for cosmetic procedures, such as electrolysis, mastectomy and Adam’s apple reduction surgery. Employers are also adding more fertility benefits. Close to 20 percent of companies offer financial assistance for adoptions, egg harvesting/freezing, fertility treatments and counseling.

Another big benefits trend in 2018 that’s likely to carry over into 2019 is the rise of pet perks. SHRM found nearly 10 percent of organizations now allow pets at work or offer pet health insurance. Some companies have gone as far as offering paid time off or the flexibility to work from home for employees who adopt a pet, referred to affectionately as ‘paw-ternity leave.’

While healthcare cost-management and benefits inclusivity are industry trends likely to see more growth in 2019, that doesn’t mean they automatically make the most sense for every employer. Employee benefits engagement is difficult and under-utilization is often an issue employers need to strategically tackle. Including employees in the benefits selection process, whether it be through polls or surveys or direct employee involvement in meetings, will help employers offer benefits that make the most meaningful impact in the lives of their employees.

How to Make Traditional Work Better for Freelancers

How to Make Traditional Work Better for Freelancers

by | Dec 18, 2018 | Blog

How do you make traditional work better for freelancers? Freelancers have traditional jobs too and what they want to get from them is predictable income flow and the flexibility to continue their freelance work.

More than one in five freelancers are also employed at established companies and for most, their traditional job is their primary source of income, according to recent research by FlexJobs.

Freelancers and others working in the gig economy are looking for flexibility from potential employers. Striking the right balance between structured work and flexible work arrangements is important for employers who want to stay competitive because unemployment continues to hover at a historic low.

Research by Edelman Intelligence found some form of formal employment is necessary for most freelancers because, in most cities, the average freelancing rate falls well below the compensation needed to afford an apartment independently, and in some cases, even with a roommate.

If freelancing isn’t enough to cover basic housing costs, why are more than 57 million Americans still doing it? More than 90 percent of FlexJobs’ survey respondents said the freelancing lifestyle is important to them because of benefits like a flexible schedule, work-life balance, no commuting, self-development and the freedom to choose where they work. Over 60 percent of freelancers said it had a positive impact on their overall quality of life. Freelancing helped them become healthier, less stressed and they’re either less financially stressed or feel no difference from when they worked in a traditional job.

The two biggest challenges for freelancers are finding clients and having predictable income flow. They also struggled with handling the business aspects of freelancing (taxes, insurance, etc.), getting payment from clients and dealing with the perceptions of freelancers.

Employers likely already have at least one freelancer in the office, though they might not know who it is, because nearly 35 percent of GenXers and Baby Boomers and over 20 percent of Millennials are in the freelance workforce. And most of them aren’t entry-level employees either, more than half of freelancers described themselves at the intermediate or management levels of their careers.

Traditional jobs help freelancers gain predictable income flow but complicate their work-life balance. A normal job could limit the scope of projects they can take on, their availability to meet deadlines and limit timeframes they can meet with potential clients. Finding additional flexibility for freelancers who need it can build company loyalty and boost job satisfaction. Most freelancers are going to need a traditional job to afford housing costs, so why not employ them, give them the flexibility they need and benefit from their tenacious skill set?