Part 8 of Legal & General’s U.S. Gig Economy Study offers guideposts for employer response

• As the gig economy keeps growing, employers have the opportunity to make use of this resilient, independent talent pool
  3 main concerns for gig workers: flexibility, pay equity, benefits such as health & retirement:
• Hybrid work and flexible work conditions, including work from home, are here to stay
• Companies can choose to offer more equitable pay to gig workers for contract services, regardless of gender, minority status, preferences, etc.
• Employers may want to develop structures to support freelancers in getting access to benefits such as health insurance and retirement provisions
• After mass layoffs of 2022-23, an expanding gig economy pool provides companies with access to thousands of tech workers

New York, NY, July 26, 2023 — The eighth and final segment of a broad new study on the U.S. Gig Economy sponsored by Legal & General Group (LGEN, LGNNY), Full Circle: What Employers Need to Know About Independent Workers in America was released today. The report wraps up a year-long, in-depth study of the fast-changing American workforce, with a growing number of independent workers projected to reach 50 percent of the U.S. labor force by 2027, in terms of how employers could better adjust to include them. 

This eighth part of the data-rich study yielded the insight that, given the preference of freelancers to stay in the gig economy, companies may need to look for new ways to engage with this valuable part of the workforce, including: better understanding of skills offered, skills gaps they can fill, and integrating into existing teams. Companies will also benefit by setting mutually acceptable terms with their independent contractors, offering ways to contribute to their health and retirement plans. Approaches to attract independent workers back to the workplace range from emphasizing the inclusive, social and supportive aspects of office culture, such as mentoring and teamwork, to understanding gig workers’ concerns and financial security needs and moving toward offering solutions.

The study lays out three major areas of concern for U.S. gig workers, as well as a forecast for the IT sector:

• A need for flexibility in working hours and place of work—a continuation of hybrid work
• Addressing the gender pay gap—the study shows women earn 22 to 45 percent less than men
• A lack of financial security benefits, especially health insurance and retirement savings vehicles
• Harnessing the potential glut of IT gig workers in light of massive layoffs in the tech sector in 2022-23

A grass-roots, not top-down approach to change

Legal & General’s report looks at the independent attitudes and resilience of U.S. gig workers, while pointing to their very real needs and concerns. Despite inequities and long-term financial insecurity, their get-it-done attitude could be a huge asset to the many companies experiencing a dearth of talent. But rather than a systemic, top-down solution such as legally mandating insurances and retirement savings for gig workers, the study anticipates that a grass-roots movement coming from these independent workers and their advocates will gradually but meaningfully change how their earnings are structured.