Study of more than 1,000 gig economy workers reveals more than three-quarters would do more gig work if they were paid faster.
San Francisco, California – Hyperwallet, a leading global payouts provider to millions of independent workers, has released its latest payments report in partnership with PYMNTS.com: the Gig Economy Index™. For the study, more than 1,000 U.S. gig economy workers were surveyed to better understand why they work in the gig economy, how they get paid and future goals.
“The modern workforce has seen a significant shift in recent years, with many workers opting for gig jobs – such as driving for Uber or selling images on Shutterstock – in lieu of traditional shift work or full-time jobs,” said Brent Warrington, CEO of Hyperwallet. “Businesses across all industries – gig economy-related and otherwise – can learn a lot from this shift. They need to adjust their employee recruitment and retainment strategies to meet the needs of today’s workforce.”
Key findings of the Gig Economy Index include:
Payment speed impacts productivity
As more employees opt to work in the gig economy, one factor holding workers back from accepting more hours is payment speed. According to the study, more than three-quarters (77 percent) of gig workers indicated they would do more gig work if they were paid faster. In fact, only about one-third of workers (34 percent) are paid within a day of completing gig work. An additional 36 percent are paid within a week. The remaining 29 percent indicated it takes more than a week to get paid, with a small percentage even saying it takes more than four weeks.
Younger workers are more likely to opt for gig jobs
According to the findings, younger workers are much more likely to embrace gig jobs than older generations. While nearly one-quarter (23 percent) of 18-to-24-year-olds currently work a gig, only 10 percent of those 55-plus work a gig.
“A key driver of the gig economy is millennials’ demand both for flexible work hours and use of new technologies,” said Warrington. “Gig work empowers millennials – and workers of all ages, really – to work when they want and where they want, all with just a tap of their mobile devices. This tendency for millennials to gravitate toward gig work might also foreshadow future workplace expectations regarding traditional jobs. The workforce as a whole will continue to want more flexibility – including flexible hours, the option to work remotely and more.”
Increased earnings are a significant driver of the gig economy
More than half (51 percent) of survey respondents said the most important factor for getting a gig is making money. Additionally, two in five respondents receive more than 40 percent of their income from gig economy jobs. Other reasons for choosing gig work include funding a hobby, or simply appreciating the flexibility the gig economy offers.
“One of the major appeals of the gig economy for workers is that it’s on-demand – and payments should be no exception,” said Warrington. “For the gig economy to continue its rapid growth, gig job providers and platforms need to place an emphasis on payment speed – or risk workers cutting back hours, switching gig platforms, or leaving the gig economy entirely.”
To download a full copy of the report, visit http://www.pymnts.com/gig-economy-index/.
The Gig Economy Index™ is a study of 1,032 U.S. gig workers, distributed by Hyperwallet and PYMNTS.com, to better understand workers in the gig economy — who they are, what services they supply to this economy and the percentage of their overall income the gigs represent. The report was developed and distributed in fall 2016.