Should wellbeing benefits be extended to contractors and gig workers?
Aon Employee Benefits will be speaking and exhibiting at the virtual Employee Wellbeing Congress in September. Learn more about the Congress and register to attend.
The gig economy is a growing workforce. In the UK, 4.7 million workers are part of the gig economy – which has doubled in size since 2016, a 2019 study from the Trades Union Congress and academics at the University of Hertfordshire found. By the end of 2019, there were more than 5 million self-employee people in the UK – up from 3.2 million in 2000 – of which 10% were sub-contractors, according to Office for National Statistics April 2020 self-employment figures. In part due to technology, the workplace has evolved significantly over the past few decades, with a greater emphasis on flexible working and work/life balance. Our uncovers the personal choices driving the gig economy – where individuals are seeking greater control of their careers, and the flexibility that it can bring.
Improved performance
There have been various research studies which link improved wellbeing with better business outcomes. Employees are happier, more productive, have fewer sick days and the bottom line of the business improves. It would be logical to assume that if the same wellbeing benefits are extended to gig workers, the same output would be achieved; providing wellbeing benefits to contractors and gig workers could positively impact business performance. Research suggests this could be the case; in Aon’s Gig Economy report, 67% of gig workers said they would feel more engaged and positive towards the organisation they work for with benefits in place.
“Businesses should be truly concerned about their responsibility and duty of care towards their gig workforce. If we are to get the best out of people, you need to treat your gig workers and traditional employees equally — regardless of their contracts,” says Andrew Cunningham, chief commercial officer, EMEA Health Solutions at Aon.
Competitive edge
Although it is sector-dependent, competition for gig workers can be high. In the tech sector, our Gig Economy report found that 68% of HR directors say competition is increasing. Extending benefits to include contractors and gig workers could be one way for businesses to remain competitive in the marketplace. It could also potentially help businesses retain talent – if an individual is more satisfied, they are less likely to change roles. Employee benefits and perks are one of the contributing factors in creating a positive work life experience.
Cultural integration
Some wellbeing initiatives – those aimed at improving social wellbeing, for example – will invariably require group involvement or a holistic shift in company culture. By excluding workers who aren’t traditionally employed, businesses will be reducing the effectiveness of strategies which rely on mass participation. For example, a programme which addresses social isolation might not be as effective if it excludes gig workers. Furthermore, gig workers may be most in need of targeted support; in our Gig Economy report 49% of gig workers stated they felt isolated in their work. In this example, employers might be missing a key opportunity to provide support where it’s needed most.
“Employers have a huge and critical role to play in regards to the wellbeing of gig workers. You want all your workers to come through the door every day as healthy, productive, engaged and happy as possible. Part of fostering a culture in which people thrive is about fully embracing the responsibility to educate, inform and guide your employees,” explains Matthew Lawrence, chief broking officer, EMEA Health Solutions, Aon.
Businesses are more aware than ever that for their workforces to be productive, they need to play a critical role in their workers’ wellbeing. The gig economy is growing, and it is clear that businesses who invest in the wellbeing of all their workforce will reap the rewards.
For more information on the future of the gig economy and employee benefits, download Aon’s Gig Economy report.
This article is provided by Aon.
Employers' responsibility to all of the workforce, including gig workers, will be considered during this years’ virtual Employee Wellbeing Congress. View the full agenda and register here to attend.
