A Study Reveals That Both Gig Workers And Corporate Employees Have Comparable Financial Concerns.

42% of full-time corporate employees and 55% of gig workers claim to be living paycheck to paycheck.

 

According to a recent survey, many American employees are concerned about a potential recession and live paycheck to paycheck. The study was made public by the online employment marketplace Wonolo. The “State of Financial Health of Today’s Workforce” report is based on surveys completed by 1,000 gig workers and 1,000 corporate employees from around the United States.

According to the study, 3 in 4 of both categories of workers worry about their financial security if a recession occurs in the coming year, with 55% of gig workers and 42% of those with full-time corporate positions reporting that they are living paycheck to paycheck.

The findings, according to Wonolo officials, highlight the need to increase assistance for gig workers because even those with full-time jobs occasionally rely on this type of work to help with household expenses.

“Volatilities in our economy are having an effect on workers everywhere. According to our research, corporate workers supplement their salaries with side jobs in order to cover their expenses, says Yong Kim, CEO of Wonolo. In order for our economy to grow, gig workers are becoming an increasingly important part of the workforce. However, businesses have not given gig workers’ requirements much consideration. A more flexible labor force across the country that can adjust to economic change will be produced with wise investment in all sorts of workers.

 

Employees have comparable worries

The financial insecurity experienced by American workers is not really new, despite the fact that economic concerns have recently taken a much more prominent role in media reports: according to a pre-pandemic study from Charles Schwab in 2019, 59% of American adults say they live paycheck to paycheck.

The Wonolo survey nevertheless demonstrates how gig workers and more conventional employees have many of the same financial worries.

For instance, 75% of corporate workers and 78% of gig workers worry about their financial stability if a recession occurs in the coming year due to the pressures of inflation and economic uncertainty.

Only 41% of corporate employees and 42% of gig workers report having seen a rise in salary over the past six months, despite the fact that the clear majority of both groups (85% of gig workers and 92% of corporate employees) say their bills have become more expensive.

The report’s conclusions vary in a few areas, including paid time off (PTO) and retirement savings. Compared to corporate employees (28%), over twice as many gig workers (53%) claim to have fewer than 15 days of PTO. When it comes to retirement savings, over twice as many gig workers (48%) than corporate employees (27%), report not possessing a 401(k).

 

Additionally on their minds are benefits and employment flexibility.

The fact that there isn’t a significant difference in how both sorts of workers feel about mental and physical health is an intriguing result. According to the study, 29% of gig workers and 25% of corporate employees believed that their jobs had a detrimental impact on their physical and mental health.

The same proportion of both sorts of workers—76%—said that designated mental health days would be the most helpful. Better financial rewards (73%) and better health benefits (69%) are other things that gig workers say would improve their general well-being. If their employer employed more people (72%), and gave them more flexibility with their work schedules (71%), corporate employees said their general health would improve.

For some Americans, the distinction between typical corporate labor and gig work is hazy. According to the survey, 28% of corporate employees also hold a part-time or side gig.

More than half of corporate employees claim they are required to be in-office and on-site for each shift of work, despite their desire for more flexibility in work hours as indicated above. Additionally, 19% of corporate employees claim that they can work remotely occasionally with advance notice but prefer to be on-site. According to the report, 15% of corporate workers do all of their job remotely, while 12% split their time between on-site and remote work.

There are age distinctions as well. According to the survey, Gen Zers (32%) are nearly twice as likely to be able to work remotely certain days if they request it in advance as Millennials (19%), Gen Xers (15%), or Baby Boomers (14%) but remain primarily on site.

 

 

 

 

Source: https://www.benefitspro.com/2022/11/03/study-finds-similar-financial-worries-among-both-gig-workers-and-corporate-employees/