Rising from the ashes of the pandemic, a new approach to the workforce was born. A familiar post-pandemic phenomenon coined The Great Resignation explains that a large percentage of the workforce took an introspective look at their work/life fit and decided the traditional path no longer met their personal needs. As a result, the gig economy emerged. The gig economy is best defined as workers who undermine the rigidity of full-time roles and elect to pursue non-traditional, temporary, contract or freelance jobs that pay by the gig, like running an Etsy workshop, driving with Uber, or freelancing as a consultant.
Approximately one-fifth of the overall US labor force classified themselves as gig workers as of 2021; furthermore, it is predicted that 60% of the US workforce will be independent by 2027. Let’s face the facts, the gig economy is here to stay! When a large percentage of the population evolves, we must learn to evolve with it. Let’s take a look at three gig economy trends and why financial institutions should pay attention.
Gig Economy Trends:
1. Gig economy workers use technology to stay connected & to find their next gig. Here’s an overview of how the gig economy works:
- Workers and employers typically find each other using digital platforms
- Individual gigs make up a worker’s income
- Independent workers are responsible for their own taxes, retirement plans, and benefits
With that in mind, we see that the gig demographic is made up of tech-savvy entrepreneurs who are comfortable leaving the security of their traditional employment to pursue their passions and autonomy–no matter the financial risk to themselves. This generation of workers wants to conduct all aspects of their life online, whether it’s their business, banking, or lifestyle. As a result, financial services need to be convenient, quick, and intuitive to meet the needs of the consumers.
To attract and maintain loyalty with this demographic, financial institutions need to be equipped to offer user friendly mobile apps where gig workers can easily access services at their fingertips or on the go.
What now? The current state technology for some institutions involves some form of online portal where customers are able to see their accounts, deposit checks, and make investments. Depending on the respective service capabilities, developing a mobile strategy to transform this capability into an easy to use mobile app will allow institutions to win and keep the business of this demographic.