With the gig economy apparently booming as Americans search for nontraditional employment, researchers at Mercer suggest that it’s time to give gig workers benefits.
The number of gig workers—defined as workers who are self-employed or independent—has grown exponentially in recent years and is likely to continue accelerating as a result of COVID-19, with approximately 30 million Americans already receiving their primary income from gig work, according to Mercer. As such, the trend toward an increase in the gig workforce is anticipated to continue as American workers search for nontraditional forms of employment that can offer more flexibility and a healthier lifestyle, the firm suggests.
Citing earlier research by MetLife showing that more control over one’s personal and work life is a top priority for American workers, with flexibility being a key benefit, a recent study by Mercer and AECOM found that 56% of employees would consider resigning if flexibility is not maintained post-pandemic.
On the employer side, a recent poll of Mercer clients found that nearly 65% of respondents anticipated that their gig workforce will grow over the next year, and have historically focused on targeting specific pay benchmarks and developing a specific talent value proposition for their contract workforce as a way to attract these workers.
But given the apparent labor shortage in the U.S., as organizations struggle with resourcing work, the Mercer researchers suggest that employers need to cast a wide net to allow as many people as possible with the right skills engage with them, on their terms. One way businesses can source a wider pool of talent is by offering independent workers certain benefits similar to the benefits offered to their employees, such as direct access to a suite of personalized insurance and other professional benefits, the firm suggests.
“Giving all the people who work for your company access to benefits is an effective way to attract, retain and engage your workforce,” says Ravin Jesuthasan, Senior Partner, Global Transformation Leader, Mercer. “Companies need to consider extending access to a comprehensive suite of benefits to their independent and gig workforces, which are becoming an increasingly pivotal talent pool for companies across various industries. By enabling independent workers to focus on their work and developing the skills needed to contribute, as opposed to the administrative burden of shopping around for benefits, leading organizations are creating a loyalty loop with this critical workforce.”
In fact, a recent Mercer survey of independent workers found that 56% of respondents were “interested or very interested” in a single sign-on platform to access insurance products and services. Furthermore, 69% were interested in a customized insurance bundle based on an analysis of personal needs—and they were willing to pay for those services.
With the growth in on-demand platforms, an aggregated and guided shopping experience for insurance and professional benefits can be a competitive differentiator to simulate the experience of a traditional employee, Mercer emphasizes. “The on-demand workforce is more in demand than ever before, and gig work is increasingly seen as a strategic growth driver for organizations. COVID-19 accelerated this workforce’s criticality [sic] to businesses achieving their goals and long-term sustainability,” adds Jesuthasan. “As business models shift, remote work continues to escalate, and flexibility becomes pivotal to the work experience; attracting, engaging and retaining gig workers will become more important to organizations.”
