The rising trend of gig work, especially among Gen Z and Millennials who favor nontraditional employment, is garnering attention. However, the lack of workplace benefits for many gig workers is a significant concern. A viable proposal for this urgent need is a Gig Worker Benefits Collective. Read on to learn more.
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With more than 70 million individuals in the US engaged part or full-time in the gig economy, the notable lack of workplace benefits and life insurance coverage for these flex workers has sparked widespread debate.
About half of Gen Z and millennials, who constitute over 50% of the workforce, gravitate toward nontraditional employment. Consequently, employers are reconsidering benefits for gig workers while navigating various legal and tax complexities.
Employees access benefits in the following ways:
- Employer-provided benefits – Employees typically offer benefits, using them as an incentive to attract top talent
- Purchasing individual policies – This alternative provides individuals flexibility and control over coverage
- Government assistance – This serves as many employees’ safety net. However, the ongoing debate in the US over classifying an “employee” and “independent contractor” complicates matters for gig workers
While this issue appears daunting, finding an answer is possible. Let’s explore this further.
Proposing a solution: The Gig Worker Benefits Collective
One proposal is to create a Gig Worker Benefits Collective for these short-term workers across various employers. This centralized hub would bring together multiple employers or gig platforms under a comprehensive benefits umbrella.
Here are some benefits a Gig Worker Benefits Collective could offer:
- Centralized administration: A central administration entity or pooled plan provider would manage benefit plans, including health insurance, retirement savings, and other relevant benefits. Technology and digital platforms would streamline administration and communication
- Flexible benefit options: Through the collection, gig workers could choose from a wide range of benefits based on needs. Options may include health insurance, retirement plans, disability coverage, and more. Furthermore, this would give gig workers the flexibility to customize benefit packages
- Cost sharing: Participating employers would contribute to the collective pool to cover administrative expenses, potentially reducing costs for individual employers. The collective could leverage economies of scale to negotiate better rates with insurance providers and service vendors
- Portability and continuity: This solution would ensure gig workers could continue their benefits even when transitioning between different gigs or employers within the collective. Having seamless benefit continuity would enhance worker satisfaction and retention
The Gig Worker Benefits Collective represents a professional, tech-enabled solution designed to address gig workers’ unique needs, potentially changing the landscape of life insurance and group benefits for the gig economy.
To discuss gig worker benefits further, please contact [email protected] and [email protected].
Watch the webinar, Locations and Workforce Strategy 2024: Insights, Trends, and Key Priorities, for insights into strategic workforce decision-making for 2024.
