Gig workers are the cornerstone of the UK’s service economy, playing a vital role in the UK economy, contributing approximately £20 billion every year, According to the Centre for Research and Self-Employment, they contribute approximately £20 billion every year, doing everything from delivering take outs to assembling flatpack furniture.
Research by the Office for National Statistics has found that, in March 2023, one-fifth (22.1%) of the UK workforce or 7.25 million people worked at least once a week in the gig economy. That’s a 50% increase on 2021, based on research by the University of Hertfordshire, with the number forecast to rise 14.86m regular workers by 2026.
Despite this, gig workers remain lowly paid and excluded from many of the rights and benefits that full-time employees do. Many are also on zero-hour or short-term contracts, getting paid for jobs done as opposed to time worked.
Higher living costs
At the same time, gig workers have been hit hard by rising living costs as inflation and energy prices have continued to soar. As a result, many have had to take on extra jobs to keep afloat.
And once they have paid for work-related expenses, such as fuel or obtaining a private licence, they don’t have much left over. That’s evidenced by a Leigh Day survey of 860 gig economy drivers, which found that 81% didn’t think their wages covered the cost of living, with 73% saying they had worked more than six days without a day off.
To compound matters, many gig workers are denied access to mainstream banking and financial products because of their employment status. That’s because credit scoring models view them less favourably than full-time employees due to their employment status.
As a result of all this, many gig workers fear for their job security, with a high turnover rate in companies. They also feel that they aren’t being heard and just want to be treated well.
Most employers value the work that gig workers do. That’s why they need to do all they can to help them during the current downturn, when they are struggling more than ever.
Financial help
Firstly, they need to pay them fairly, reflecting their hard work and endeavour. They should also help them to cover their expenses, such as fuel or vehicle repairs.
To ensure that they can keep the revenue coming in, they need to provide them with a steady stream of work. If they maintain this regular source of work, in return, they’re likely to receive a more reliable service.
Employers should also look to provide small perks such as free or discounted meals during shifts. Free transport, such as shuttles, are another great way to ease the financial burden.
Training opportunities
Training is key to unlocking gig workers’ full potential and empowering them. Employers need to upskill them where they can, on a one-to-one or group basis.
Typically gig workers are afforded benefits because of their status. But companies should look beyond financial assistance to see what else they can provide them with, such as wellness programs and therapy.
Greater payment access
What will benefit gig workers the most, however, is better access to payment. This can be achieved effectively through the use of technology such as instant payment apps that pay when a job is completed or they need an advance during a lean period, with the deficit being covered when they start earning again.
Money management tools are another key benefit, ranging from open banking and budgeting capabilities and financial planning to credit building and self-assessment tax returns apps. This extends to face-to-face financial advice and guidance too through seminars and workshops.
But these platforms need to also be fair and transparent. The easier it is for gig workers to see what is happening, the better this will enable them to manage their finances.
Helping gig workers during these economically challenging times is a win:win for all. Both the company and wider economy benefits for higher productivity and morale, while the worker has greater stability. Therefore, it’s essential that employers do all they can to protect their futures financially.
Steve Fepeussi, co-founder and CEO at Puulse has been at the forefront of helping the underserved gig worker community by building a bank account specific to their needs that will let them access their funds when they need them and enable them to thrive. Having worked in the gig economy, we know the challenges that workers face in getting paid and we want to continue to support them to help them support their families and plan for the future, while bringing greater fairness and transparency to the industry.
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