For many of these workers whose positions were eliminated in the Great Recession, the
gig economy offers them a way to earn a living, often working from home. The challenge for HR professionals is, in addition to a high level of turnover when using remote workers, is that onboarding, benefits, and other traditional HR tasks have to be done much differently.
According to Layne Davlin, founder and CEO of
NetPEO, Fortune 50 companies like Microsoft know the value of keeping top talent that happen to be good remote or gig workers. “In order to do this, one of the ways they have found is giving those workers more stability and a sense of security by offering them the same benefits that permanent employees are offered,” Davlin said. “For those companies, offering benefits to remote workers will go a long way toward both ongoing company and employee success in the long term.”
Where Are The Benefits For Gig Workers?According to
Technology Review, the number of gig workers may encompass 50% of the current workforce by 2024. Despite this, bills introduced in the House and Senate to help provide gig workers benefits have been allowed to languish and finally die in committee.
During the most recent American Benefits Council’s symposium that was recently held in Washington, D.C., HR and benefits industry experts were in agreement that, because of increased job automation through AI technology, many workers were turning to the gig economy. With more companies turning to gig workers for their benefits, however, it makes it harder for people who need benefits to find traditional employment.
One of the largest concerns raised at the symposium was that medical, retirement and other benefits will have to adapt. Even though the federal government has failed to move these initiatives forward, the state governments of California, New York, New Jersey, Oregon and others have taken on the issue and are examining ways to provide benefits for gig workers.
One of those changes outlined at the symposium was to offer gig workers portable benefits. The Aspen Institute
issued a report suggesting that workers could work for a number of companies and be able to take those hours and translate them into benefits no matter where they work. Washington State has
enacted legislation that would require companies using workers that are reported to the IRS under 1099 status to make contributions to nonprofit benefit providers for them. The amount would cover workers compensation insurance and contribute $2 for every hour a worker provided service to the company in order to go toward their medical and other benefits.
The pressure to provide benefits to gig workers will keep increasing as more people turn to it as a way to live. But if nothing changes, HR might see the beginnings of a new labor movement.
