LGGNF - Part 8 of Legal & General’s U.S. Gig Economy Study offers guideposts for employer response
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- As the gigeconomy keeps growing, employers have the opportunity to make use ofthis resilient, independent talent pool
- 3 main concerns for gig workers: flexibility, pay equity, benefitssuch as health & retirement:
o Hybrid work and flexiblework conditions, including work from home, are here to stay
o Companies can choose to offer more equitable pay to gig workers forcontract services, regardless of gender, minority status, preferences,etc.
o Employers may want to develop structures tosupport freelancers in getting access to benefits such as healthinsurance and retirement provisions
- After mass layoffs of 2022-23, anexpanding gig economy pool provides companies with access to thousandsof tech workers
The eighth and final segment of a broad new study on the U.S.Gig Economy sponsored by Legal & GeneralGroup ( LGEN , LGNNY ), FullCircle: What Employers Need to Know About Independent Workers inAmerica was released today. The report wraps up ayear-long, in-depth study of the fast-changing American workforce,with a growing number of independent workers projected to reach 50percent of the U.S. labor force by 2027 , in terms of how employerscould better adjust to include them.
This eighth part of the data-richstudy yielded the insight that, given the preference offreelancers to stay in the gig economy, companies may need to look fornew ways to engage with this valuable part of the workforce,including: better understanding of skills offered, skills gaps theycan fill, and integrating into existing teams. Companies will alsobenefit by setting mutually acceptable terms with their independentcontractors, offering ways to contribute to their health andretirement plans. Approaches to attract independent workers back tothe workplace range from emphasizing the inclusive, social andsupportive aspects of office culture, such as mentoring and teamwork,to understanding gig workers’ concerns and financial security needsand moving toward offering solutions.
The study lays out three major areas of concern for U.S. gigworkers, as well as a forecast for the IT sector:
- A need for flexibility in working hoursand place of work—a continuation of hybrid work
- Addressingthe gender pay gap—the study shows women earn 22 to 45 percent lessthan men
- A lack of financial security benefits, especiallyhealth insurance and retirement savings vehicles
- Harnessingthe potential glut of IT gig workers in light of massive layoffs inthe tech sector in 2022-23
“The steadily growing U.S. gig economy calls for realchange in long-established work models. Understanding the aspirationsand concerns of this contingent will help employers resolve to meetsome of the needs that are now provided by traditional work. It’slikely that the initial impetus for change will come from thefreelancers themselves, as they look to better fill gaps in theirhealth insurance and retirement savings. At the same time, companiesthat are hiring will benefit from the resilience and agility ofindependent workers as they become a more integral part of the enginethat drives their growth.”
Sir Nigel Wilson, Chief Executive, Legal &General Group
A grass-roots, not top-down approach to change
Legal & General’sreport looks at the independent attitudes and resilience of U.S. gigworkers, while pointing to their very real needs and concerns. Despiteinequities and long-term financial insecurity, their get-it-doneattitude could be a huge asset to the many companies experiencing adearth of talent. But rather than a systemic, top-down solution suchas legally mandating insurances and retirement savings for gigworkers, the study anticipates that a grass-roots movement coming fromthese independent workers and their advocates will gradually butmeaningfully change how their earnings are structured.
“While U.S.freelancers weighing the advantages of gig work have clearly come downon the side of independence, several conditions could be improved tolevel up their situation with that of the mainstream workforce.Independent workers shouldn’t have to find themselves short onhealth insurance or a secure retirement. Companies that hire gigeconomy workers can attract the best of this resilient, creativeworkforce by filling these needs, while helping bring about broadersocial gains in health, wealth and longevity.”
John Godfrey,Director of Levelling-Up, Legal & General Group
This report concludesLegal & General’s U.S. Gig Economy study. To receive a pdf ofany of these reports, including two special reports on tech gigworkers and female gig workers, please email Meir Kahtan/MKPR atmkahtan@rcn.com.
Notes toEditors
The information containedin this press release is intended solely for journalists and shouldnot be relied upon by private investors or any other persons to makefinancial decisions.
About theStudy
Legal & General undertook proprietary research into the attitudes and changes U.S. gigworkers are experiencing in relation to their work situations andfinancial outlook. The U.S. Gig Economy research was compiledusing original survey data from 1044 U.S.-based workers aged 18 to 60who are neither students nor retired, and who earn at least 60% oftheir income from gig work. The data was collected via online surveyfielded to individuals sample sourced from YouGov’s US panel. TheLegal & General-designed survey was scripted and hosted onGryphon, YouGov’s proprietary survey scripting platform, and thefield work took place between August 19 and 31, 2022. Keydemographics such as age, gender and region were allowed to fall outnaturally. 20 questions were designed to understand facts aboutearnings, drivers of and barriers to gig working, financial productownership & financial capacity when coming across adversesituations, and future expectations of being involved in the gigeconomy. Verbatim comments were captured by Legal & General inresearch carried out in June 2022.
About Legal & GeneralGroup
Established in 1836, Legal & General is one ofthe UK's leading financial services groups and a major globalinvestor, with over £1.2 trillion ($1.4 trillion) in total assetsunder management* of which a third is international. We also providepowerful asset origination capabilities. Together, these underpin ourleading retirement and protection solutions: we are a leadinginternational player in pension risk transfer, in UK and US lifeinsurance, and in UK workplace pensions and retirement income. Throughinclusive capitalism, we aim to build a better society by investing inlong-term assets that benefit everyone.
*as of December 31,2021
The information contained in this press release is intendedsolely for journalists and should not be relied upon by privateinvestors or any other persons to make financialdecisions.
Contact Details
Meir Kahtan
+1917-864-0800
CompanyWebsite
https://www.legalandgeneralgroup.com/
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