What's Happening?
Gig workers are increasingly becoming a significant part of the American workforce, with many relying on gig work as their primary source of income. A survey by Everee found that nearly 60% of gig workers earn at least half of their income from gig work, and over a quarter rely entirely on it. This shift has created financial instability for gig workers, who often lack access to traditional employee benefits like healthcare and retirement savings. HR departments are exploring ways to support these workers, including offering low-cost insurance products and reexamining pay models to better accommodate the needs of nontraditional workers.
Why It's Important?
The rise of gig work reflects broader economic trends and challenges, including inflation and the need for flexible work arrangements. As gig work becomes more prevalent, HR departments must adapt to support these workers, who often face financial insecurity and lack access to traditional benefits. This shift has implications for workforce management, employee satisfaction, and retention, as gig workers increasingly demand quick access to earnings and financial stability. Organizations that successfully address these needs may gain a competitive advantage in attracting and retaining talent.
What's Next?
HR departments may continue to innovate in providing benefits and support to gig workers, potentially blurring the lines between traditional employment models and gig work. As the gig economy grows, companies may need to reconsider their pay structures and benefits offerings to remain competitive and compliant with evolving regulations. The focus on quick access to earnings and financial stability is likely to persist, driving further changes in HR practices.
