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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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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. 

More on the Multigenerational Workforce and Financial Stress

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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. 

Millennial Financial Stress Statistics 2019

Millennial Financial Stress Statistics 2019

by | Sep 9, 2019 | Blog

Millennial financial stress statistics 2019. Here’s how student loans, housing costs and savings are affecting the millennial generation.

Based on the most recent data, Millennials are now the largest generation in the workforce, surpassing both Baby Boomers and Generation X. Burdened with student loan debt, high costs of living and savings struggles, Millennials are also some of the most financially stressed employees.

Nearly two-thirds of Millennials feel like they are doing worse financially compared to their parents’ generation and 76 percent find it stressful dealing with their financial situation — and this stress is only getting worse over time. 

Millennials and Student Loan Debt

The U.S. is dealing with a student loan debt crisis, with total debt reaching nearly $1.6 trillion. Millennials are dealing with the brunt of this crisis — 29.1 million student loan borrowers are under the age of 39, more than any other generation. 

According to research from PwC, nearly half of Millennials have student loans and 80 percent say their debt has a moderate or significant effect on their other financial goals. When asked what benefits they would like to see from employers, more than a third cited a student loan repayment benefit. 

In another survey, Millennials admit to putting off building an emergency fund, saving for retirement, buying a home and getting married due to student loan debt. 

Housing Costs and Millennial Financial Stress

In addition to — and in conjunction with — student loan debt, millennials face lower incomes and higher housing costs than the generations before them, making the rising costs of living a major financial stressor. Many Millennials graduated during a recession, and they still make 20 percent less than Baby Boomers did at the same stage of life. 

Only 36 percent of Millennials say that their compensation is keeping up with the rising cost of their living expenses, a number that is even lower for Millennial women. Lower incomes and higher living costs make it difficult for this generation to maintain a comfortable standard of living while paying off debt and attempting to save for the future. 

Millennials Have Inadequate Savings

Not having enough savings for unexpected expenses is one of the top concerns for Millennials, with 62 percent saying they are most financially stressed about their lack of emergency savings. This, combined with the aforementioned issues of debt and living costs, paints a pretty bleak financial picture for Millennials. 

Only one in four Millennial employees say they would be able to meet their basic expenses if they were out of work for an extended period of time and 63 percent consistently carry balances on their credit cards. In addition to struggles with emergency savings, Millennials’ retirement savings are taking a hit — 24 percent have already withdrawn money from their retirement funds to pay for other expenses.  

Half of Millennials have reported that financial worries affect their productivity at work, making financial stress a problem for employees and employers alike. Financial wellness programs like Best Money Moves can help alleviate the problem. Best Money Moves is mobile, gamified and easy-to-use — perfect for millennials. 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.

5 Must-Have Benefits for Millennial Employees

5 Must-Have Benefits for Millennial Employees

by | May 22, 2019 | Blog

Two million students will graduate with a bachelor’s degree this year and enter the workforce. MAVY Poll surveyed recent graduates on behalf of the American Institute of CPAs to determine which employee benefits would most help them achieve their financial goals as they begin their job search.

“The job market, and therefore the employee benefits market, is constantly evolving. These days, finding the perfect job is about a lot more than money,” says Gregory J. Anton, Chairman of AICPA’s National CPA Financial Literacy Commission.

Top 5 Must-Have Employee Benefits for Millennials

5. 401(k) Retirement Fund Match was in the top three desired employee benefits for more than 35 percent of millennials. Recently, it’s become clear most Americans have not saved enough for retirement, if they’ve saved any at all, which might be motivating millennials to prioritize retirement funding.

“By beginning to save towards retirement as early as possible, new graduates will benefit from decades of compounding growth. Time is an asset, and those just starting their career are in a prime position to take advantage of it,” says Anton.

4. Working Remotely was in the top three benefits for nearly 40 percent of millennials. Flexible work schedules have become the new norm and millennial employees expect to have some sort of control over when and where they work.

3. Student Loan Forgiveness was an important employee benefit for over 40 percent of millennials. AICPA found nearly two-thirds of young adult job seekers have student loan debt, with an average debt of $33,332.

2. Paid Time Off was a benefits priority for 45 percent of millennials. General Mills recently overhauled their paid leave policy by tripling the length of paid maternity and paternity leave, introducing paid caregiver leave, and boosting bereavement and short-term disability benefits. Sharon DeTaeye, senior manager of human resources specialist operations at General Mills, says, “It’s an ongoing process, but we’re encouraged by the results we have seen so far.”

1. Health Insurance was the benefit millennials felt would most help them achieve their financial goals. Research by the West Health Institute/NORC at the University of Chicago found more than 40 percent of Americans didn’t see a physician when they were sick or injured because of high healthcare costs. Comprehensive healthcare plans that reduce out of pocket costs for employees will be highly attractive to millennial employees.

Millennials Split $100 Towards Employee Benefits

Millennials with student loan debt were asked to split $100 between paying a portion of their student loan debt versus a specific benefit and in all cases they preferred their employer put more money towards paying their student loan debt. Job seekers allocated $60-$80 towards student loan debt and the remaining $20-$40 towards a specific benefit like health insurance, paid time off, tuition reimbursement, life insurance, 401(k) retirement fund match and daycare.

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Stress, Money and Millennials: Where’s the Pain Point?

Stress, Money and Millennials: Where’s the Pain Point?

by | Nov 7, 2018 | Blog

Today is Stress Awareness Day, so it’s no surprise that for many Millennial employees, money (and financial stress)  is still top of mind.

A recent Bank of America report, which analyzed the money habits of over 1,000 Millennials, found that the chief concern for respondents was that they weren’t saving enough for future expenses, like emergency funds and retirement. Worrying about career paths and whether they’d be able to afford to buy a home rounded out the top three stressors.

Additionally, three-quarters of respondents said that their generation overspends compared to other generations. Nearly two-thirds of Millennials also believe that their generation is not good at managing money. This is a trend that’s remained consistent throughout each year of the Better Money Habits Millennial Report, with stress levels of 2014 being on par with those of 2018.

But despite what you — and they — might think, Millennials’ money habits are as good as or better than other generations. The report revealed that a majority of the group are saving, budgeting, have a savings goal and feel financially secure. This age group is “young enough to start developing smarter money habits” according to Haley Ross of Bank of America Better Money Habits’ team, but that doesn’t mean they feel secure in their choices. Many doubt their financial security and the financial security of their peers. Sixty-four percent of Millennials believe that their generation does not manage money well and 75 percent feel their generation overspends in comparison to older generations.

This lack of a feeling of financial security may explain why over the past two years, Millennials were more likely than Gen Xers or Baby Boomers to ask for a raise, and 80 percent of those who asked for a pay increase got one. According to Ross, Millennials are getting their financial houses in order which may contribute to their drive to advocate for themselves at work by asking for a raise.

Job Hopping Your Way Out of Financial Stress

About one in four Millennials consider themselves to be “job-hoppers” and expect to have eight or more jobs throughout their lifetime. This isn’t always by choice; a quarter of them reported that they have been laid off at some point. In the long run, this can hurt their future savings — thirty percent of respondents say they haven’t stayed at a job enough to set up a retirement plan — and it can hurt employers’ bottom line too as they work to combat increased turnover.

Companies looking to increase hiring and retention can take a look at what Millennials feel is missing from their current job: A positive work/life balance. Offering benefits and enforcing a culture that supports a better work/life balance may be the key to Millennial employees hearts. Other perks like financial wellness programs, education savings plans and family leave benefits can help boost retention and attract top talent.

According to Ilyce Glink, CEO of the financial wellness platform Best Money Moves and author of a dozen books about money and real estate, says that while Millennials are pushing through their uncertainty over money, they’re also pushing their employers to be innovative around the issue of financial wellness.

“For a long time, companies assumed they were ‘ticking the financial wellness box’ simply by providing a 401k plan, perhaps even with an incentive like a matching program,” Glink explained. “But Millennial employees’ sophistication around financial wellness is growing and as the unemployment rate is at historic lows, companies are looking to increase benefits in this space to meet their employees’ needs.”