New Branch State of Gig & Staffing Report Reveals More than 80% of Workers Believe Contingent Work Provides Just As Much If Not Greater Financial Resilience Compared to Salaried Roles
TAMPA, Fla., Sept. 10, 2024 /PRNewswire-PRWeb/ -- Branch, the leading workforce payments platform, today announced new findings from its first ever State of Gig & Staffing Report, which explores the motivations, preferences, and challenges faced by today's contingent workforce. As workers seek greater flexibility and additional income, 86% believe that gig and staffing work can provide as much as if not greater financial resilience compared to traditional employment.
This reflects a growing confidence in the gig and staffing industries' ability to offer economic stability in uncertain times. According to Branch's study, 47% of respondents believe they have higher earning potential in gig and staffing work compared to salaried roles. When evaluating an agency or platform to work with, workers will seek those that offer higher earnings (73%), scheduling flexibility (64%), and faster payouts of earnings (55%). Earning potential (76%), convenience (58%), and anticipation of an upcoming bill or expense (56%) are the primary incentives driving workers to pick up more work. In an effort to diversify income streams, 78% of contingent workers engage with two or more platforms or agencies.
Technology plays a pivotal role in how they select work: nearly 90% of respondents say it's important for the company they work for to have a mobile application to pick up work hours or shifts. Payment speed and frequency are paramount as well, as 3 in 4 contingent workers want to be paid everyday. It's also what factors into choosing a platform or agency to work with, as 69% of workers would choose one company over another if it could pay them instantly. The report also found that in addition to work flexibility, payment flexibility remains a top priority, with 73% of workers preferring daily payments and 86% citing that fast payments provide greater peace of mind and financial security.
"As workers are increasingly turning to gig and staffing opportunities for full-time work and financial stability, our newest research highlights how flexibility, earning potential, and fast payment processes are essential offerings agencies and platforms alike need to provide in order to attract top talent," said Branch founder and CEO Atif Siddiqi.
Additional findings include:
1099 vs. W-2? It depends…
As states continue to debate worker classification, the study reveals why workers might choose one classification over another. Respondents were twice as likely to prefer working as independent contractors rather than traditional employees (32% vs. 15%). About a quarter (24%) stated that it depended on what types of earnings and benefits they could receive, while 29% cited that their worker classification didn't matter.
When asked why they preferred the 1099 classification, respondents cited the independence (51%) and flexibility (25%) it offers. Workers who preferred to be considered employees cited earning potential (35%), benefits (19%), and work continuity (19%) as their top motivations for W-2 classification.
Making contingent work their full-time gig
The study reveals that gig and staffing work is evolving from being merely supplementary to a primary source of income for many: 75% of respondents rely on gig or staffing work for at least half of their primary income. This underscores the shift from traditional employment models to more flexible work arrangements that offer economic resilience in uncertain times.
Furthermore, 38% of contingent workers plan to use gig or staffing work as their full-time employment rather than seeking salaried work in the future.
Gas and grocery costs remain top expenses
As consumers continue to grapple with inflation, groceries (77%) overwhelmingly topped the expense that impacted workers the most, followed closely by gas (73%) and housing (48%):
- Groceries - 77%
- Gas - 73%
- Housing - 48%
- Utilities (e.g. heating costs, electricity) - 45%
- Cars/Transportation - 36%
Contingent workers were most concerned about home/rent affordability (71%), groceries (51%) and utility bills (51%). When it comes to emergency savings, the flexible workforce (32%) is almost twice as likely as hourly workers (17%) to have $500 or more saved for an emergency.
New tech training piques workers' interest
While confident in their current skill set, the vast majority of contingent workers (88%) are open to further training opportunities. Nearly 60% of respondents believe AI will impact their work, with 36% already experiencing its effects. That may be why about half of the respondents are interested in pursuing training in new technology (48%) and AI (43%). Rounding out the top five areas of upskilling were cybersecurity (35%), digital marketing (34%), and communication (30%).
To see the full report, click here.
About Branch
Branch is the leading workforce payments platform that delivers faster, more flexible options for people to get paid. Whether it's sending earnings to employees or contractors, companies choose Branch because they know that faster payments can help them strengthen worker loyalty, save time and money, and drive business growth. Earners that sign up with Branch can receive a free bank account, instant access to earned wages, rewards, and personal finance tools to help them manage their cash flow between pay cycles. Branch partners with the nation's leading companies in healthcare, last-mile delivery, logistics, and restaurants/hospitality. Branch has been honored with a Webby Award—Best Financial Services, FinTech Breakthrough Award, Gartner Eye on Innovation: Financial Services, and Great Place to Work Certification. To learn more about Branch, visit https://www.branchapp.com and follow us on Twitter/X and LinkedIn.
Media Contact
Adrianne Ho, Branch, 6126011122, [email protected], https://www.branchapp.com
SOURCE Branch
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