2020 Pulse of Talent Engaging the alternative workforce - Report - Ceridian
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Report 2020 Pulse of Talent Engaging the alternative workforce
Introduction 2 2020: The state of the alternative workforce5 Finding the right balance 5 Focusing on the future 8 The desire to unionize 10 Navigating mental health 12 Engaging the alternative workforce for a competitive edge 15 Pay on time, every time 16 Support financial wellness 17 Look past the transaction 18 Key takeaways 20
2
Introduction The alternative workforce has been
a hot-button topic for the past
changing customer expectations,
the alternative workforce offers a
several years. From the rise of the solution to an increased need for
“gig economy” (think: Uber and speed and agility. Some of the
Foodora) to the “sharing economy” world’s most influential brands –
(Airbnb) to the “side hustle,” more Google, for example – are already
and more workers around the world leveraging alternative workers
are eschewing traditional full-time heavily4.
jobs in favor of alternative work.
According to Deloitte, more than Yet, while many companies
40% of the U.S. workforce works on understand the importance of
a contingent basis1. alternative workers, they may still
be using them in a way that is more
While many attribute the growth transactional than strategic5. The
of alternative work to widespread alternative workforce can help
job loss from the last recession, companies scale up and down at a
we’re more than 10 years on from lower cost, bring products to market
the recession and the movement faster, and focus on their core
continues to grow2. business. However, managers will
need to understand how to engage
Louis Hyman, Cornell University alternative workers to ensure they’re
professor and author of Temp: How highly productive and successfully
American Work, American Business, integrated with the existing
and the American Dream Became workforce.
Temporary, believes there is a larger
pattern of change underway: “We’re We focused our latest Pulse of
told it’s all about apps, but it’s Talent on understanding what drives
actually about the reorganization today’s alternative workers, with
of work…that [is what] defines our the goal of helping companies build
lives today3. strategies to successfully engage this
unique workforce. We learned what
Many industries are changing makes alternative workers happiest
how they work to keep pace on the job – and what companies
with industry disruption, rapid stand to lose when they’re not.
technological advancement, and a
widening skills gap. As companies
grapple with market fluidity and3
contract workers – in North America
About the survey
about their reasons for choosing
40%
For our 2020 Pulse of Talent report*, this path, their level of engagement,
we wanted to understand what the reasons behind their satisfaction
drives the alternative workforce or dissatisfaction, and where they
today, and how companies can
of the U.S. workforce see themselves in the future. We
engage and leverage this talent also sought their feedback on
works on a pool to navigate the complexities some of the key topics making the
contingent basis of the future of work. news recently, such as their level
of support for unionization and the
We asked 1,115 alternative workers
effects of alternative work on their
– gig workers, freelancers, and
mental health.
Defining alternative workers
The term ‘alternative worker’ can be hard to they do. For the purposes of this report, we’ll
define. Technology has opened the door to many use the term ‘alternative workforce’ to share the
new ways of working, which in turn has led to findings we learned about the survey group as a
an onslaught of different terms for workers who whole, which includes the following categories
don’t fit into the traditional employer-employee from our survey.
relationship: gig workers, contingent workers,
freelancers, independent consultants, side • I work independently for one company
hustlers, self-employed workers, and contractors. • I work independently for more than one
While there are some nuances between these company
different labels, what they all have in common • I’m a freelancer/consultant with various clients
is that they’re not regular employees of a single • I’m a contract worker on a contract with
company. one company
• I’m a contract worker on a contract with
In the 2020 Pulse of Talent survey, we asked more than one company
participants to identify the type of alternative
• Other
worker they are based on the nature of the work
*Nielsen conducted the 2020 Pulse of Talent research study via an online questionnaire, from July 24 to Sept. 6, 2019 among 1,115 gig/freelance/contract workers, aged
18+ across Canada and the U.S. who are members of Nielsen’s online panel. Results were weighted by respondents’ demographics based on census data to align with
the proportions of the population.2020: The state of the alternative workforce
5
Finding the right being satisfied is that their work
is interesting (57%), followed by
79%
balance
flexibility in their work schedule or
One of the key findings from our location, and good relationships
research is that alternative workers with their colleagues and/or
are largely satisfied with their employees (both 40%). of alternative workers
employment arrangement: 79%
surveyed are satisfied
of respondents are “somewhat”
or “extremely” satisfied with their with their current job
current job. The top reason given
among respondents who reported
Why are you satisfied with your current job?
My work is interesting/I like it 57%
I have flexible hours or can
work remotely from home
40%
I have good relationships with
colleagues/employees
40%
I feel secure in my job 38%
I have a good relationship with
my manager(s)
37%
Respondents were asked to “select all that apply”.6
Of the respondents who said they Perhaps what’s most interesting
“
were dissatisfied with their current about these findings is that of
gig or role, the top reason given was the alternative workers who are
pay: 75% of our survey respondents satisfied with their work, only 34%
We all want interesting work,
said the biggest reason for their said they were satisfied because
dissatisfaction is “I don’t make they make good money, and only and we all want flexibility. We
good pay.” 27% cited good job benefits as a can positively impact business
reason for their satisfaction. So, performance by aligning
The second most common reason while the absence of good pay and people with work they enjoy,
was not enjoying the work (51%), benefits may cause dissatisfaction empowering them to get it done
followed closely by not having for some workers, others may be
their way, and ensuring they see
good benefits (50%). This is not content without them if other factors
purpose in what they do.
surprising, given that three out of are present, such as interesting
four Americans whose main income work and positive relationships.
LISA STERLING | CHIEF PEOPLE
is from contract or temp work don’t
& CULTURE OFFICER, CERIDIAN
have access to health insurance6.
Why aren’t you satisfied with your current job?
75% 51% 50% 33%
22%
I don’t make good pay My work isn’t I don’t have good I don’t feel secure I have no
interesting/I don’t benefits in my job opportunities to take
like it on a leadership role
Alternative worker (among those who are not satisfied with their current job) n=807
We also wanted to understand why alternative work to pay the bills.
alternative workers are choosing Still others were using alternative
this career path – or if it even is
a choice. There were a variety of
reasons survey participants were
work as a stop-gap – 27% said they
use it to supplement their income,
and 12% do it because they could
50%
engaging in alternative work, but not find permanent work in their of alternative workers
the top reason given was flexibility desired industry.
do it for the flexibility
(50%), followed by independence
(41%).
Interestingly, 32% of respondents
said they do alternative work
because they make good money,
while 24% said they don’t make
good money but need to do
Why are you working gig/freelance/contract?
I like the flexibility it offered 50%
I like the independence
it offers
41%
I make good money doing it 32%
I have another job and I do it to
supplement my income
27%
I don’t make good money, but I
need to do it to pay the bills
24%
I could not find permanent
work in my desired industry
12%
Respondents were asked to “select all that apply”.8
Focusing on the future Even if they aren’t giving up,
alternative workers do have some
57%
Despite the challenges and
concerns about the future. In fact,
uncertainty of alternative work,
40% of our survey respondents
more than half (57%) of the workers
said they were “moderately” or
we surveyed plan to continue on
this path for the foreseeable future.
“extremely” worried about having of respondents plan to
adequate work in the next two
And the trend toward long-term gig continue with alternative
years. This concern was higher for
work increases with age: 43% of
the youngest respondents – 47% of
work in the future.
respondents aged 18-29 answered
those aged 18-29 years answered
this way, compared with 71% of
this way, compared with only 27%
those over 50.
of those over 50.
How worried are you about having adequate work in the next two years?
Extremely/moderately worried A little worried Not at all worried Not sure
Aged 18-29
2%
47% 29% 22%
Aged 30-49
3%
43% 29% 25%
Aged 50+
2%
27% 28% 43%9
That sentiment was further reflected
“
in what respondents flagged as
the biggest challenges for today’s
gig workers. Income instability was
The gig economy has had a part in changing employees’
the top concern (45%), followed
by uncertainty that work will expectations of employers. The new normal is that employers need
be available in the future and to be more flexible, and accommodate and engage the workforce.
inconsistent work hours (both 36%).
Older workers were more likely to TED MALLEY | HCM EVANGELIST, CERIDIAN
cite income instability and lack of
benefits as the biggest challenges,
whereas the youngest workers were
more concerned with low income
and communication difficulties with
their company or clients.
What are your biggest challenges working gig/freelance/contract?
45% 36% 36% 32% 31%
Instability of income Work hours can be Uncertainty that work Lack of benefits Low income – I don’t
– I never know how inconsistent with be available in feel I make enough
much I’ll bring in the future10
The desire to unionize same benefits that they provide to majority are satisfied with the
employees. These challenges have companies they work for, among
One issue that has received a led to new regulations in California, those who are dissatisfied, 72% said
lot of media attention recently is as well as broader discussions they don’t feel the company cares
how companies are treating the about how alternative workers about them, and 61% said they don’t
alternative workforce. There are should be classified under the law8. feel their company pays workers
complaints from contractors about Meanwhile, groups of alternative adequately.
feeling like outsiders and being workers are now forming unions to
treated as less valuable than their advocate for their own rights9.
full-time colleagues7, as well as
56%
issues surrounding the treatment We asked the alternative workers
of those who work for ride-sharing who work independently for one or
companies, food delivery services, more companies (e.g. ride sharing,
and task-based platforms. food delivery) about their level
of respondents believe
of satisfaction with their current
company (or companies) to find out
gig workers should
Because alternative workers are
generally classified as independent how much these widely-publicized unionize
contractors, companies are not issues are actually affecting workers’
obligated to provide them with the happiness on the job. While the
Why are you dissatisfied with the company(ies) you work for?
I don’t feel the company cares
about me
72%
I don’t feel they pay their workers
adequately
61%
The company doesn’t listen or take
action when I have grievances
45%
I don’t feel engaged with the
company
39%
The company is difficult to
communicate with
25%
* Note: these statistics are based on a smaller sample of n=33 respondents.11
Of this group, 72% said they don’t
“
feel the company cares about them,
and 61% said they don’t feel their
company pays workers adequately.
There is a fine line being drawn between the experiences
When asked whether they believe alternative workers value and their desire to have the same
gig workers should unionize, 56% of advantages as full-time employees. The real question is, “Can we
the gig workers surveyed who work provide all people an experience that inspires, motivates, engages,
independently answered “yes.” and creates trust?” Doing so requires us to reset expectations and
take a new approach to workplace experiences.
The top reason given was that it
would allow them to negotiate higher
LISA STERLING | CHIEF PEOPLE & CULTURE OFFICER, CERIDIAN
wages (69%) and better benefits
(59%). And 55% agreed that it would
help ensure greater equality.
Why do you think gig workers should unionize? Please select the top three reasons.
69% 59% 55% 39% 34%
To negotiate higher To negotiate better To ensure greater Better workplace Better job security
wages benefits (e.g. health, equality (e.g. more health and safety
dental, pension) equitable compensation
across companies)12
Navigating mental Research has found that gig work of employment insecurity” among
has both positive and negative millennials11.
health
effects on mental health. A study
from INSEAD found that self- Our survey results supported the
Mental health at work is a big topic
employed workers in the U.K. findings by McMaster, showing that
today, as technology has created
actually have better mental health job dissatisfaction is directionally
an always-on lifestyle that creeps
than their salaried peers – they more likely to negatively impact
into our work lives. Given the
drank less and exhibited fewer signs younger workers’ mental health.
inherent uncertainty and financial
of stress.10 Yet, a study by McMaster
instability associated with alternative
University in Canada found a
work, understanding the mental
“strong association between the
health effects of these types of
frequency of mental health issues,
arrangements is an especially
depression, and anger and the level
important piece of that story.
To what degree has dissatisfaction with your job impacted your mental health?
Extremely negative impact Somewhat negative impact No impact
Aged 18-29
44% 50% 6%
Aged 30-49
33% 45% 22%
Aged 50+
21% 55% 24%
**Note: these statistics are based on a smaller sample of between n=23 and n=29 respondents.13
We also asked the survey Of the survey respondents who
“
respondents who reported that cited a negative impact on their
job dissatisfaction did have a mental health, 35% felt their
negative impact on their mental productivity was “a lot lower” or
The convergence of work and
health what measures they have “somewhat lower.” What’s more,
taken as a result. Two-in-three of only 27% of our survey respondents life, the influx of information,
those respondents said they were are working for companies that offer and the rapid pace of change
looking for another job (66%), benefits covering outside mental has created negative health
while 25% said they have taken health support. And not only are implications for people of all
more sick days. Interestingly, 16% younger workers more likely to ages. Organizations should
said they have not done anything – see their mental health suffer due
take the time to understand
a scenario that can lead to lowered to job dissatisfaction, they’re also
how job dissatisfaction may
productivity on the job. more likely to experience lowered
be affecting their people and
productivity as a result.
prioritize addressing those issues
over building a comprehensive
wellness program.
LISA STERLING | CHIEF PEOPLE &
CULTURE OFFICER, CERIDIAN
What measures have you taken as a result of the negative impact on your mental health?
I’m looking for another job 66%
I take more sick days 25%
I have not done anything 16%
I’ve started taking medication 11%
I’ve sought therapy 8%Engaging the alternative workforce for a competitive edge As companies face increasing pressure to adapt to the new pace of business, the alternative workforce can help support growth, business continuity, and agility. Companies can draw on alternative workers’ specialized skillsets for strategic projects, or to cover changes in demand or seasonal peaks – much like some retail companies are already doing 12. But, it’s important to remember that alternative workers are still people, and, like their salaried counterparts, they need to feel satisfaction with their work to be fully productive. Taking steps to improve job satisfaction for alternative workers benefits both workers and organizations.
15
Pay on time, every time One of the most important ways
“
managers can show appreciation
Take freelance writers, designers, to freelancers is to ensure they’re
consultants, and web developers, paid in full, on time – every
Treating freelancers as ‘first-
for example. Many companies time. According to New York’s
Freelancers Union, 44% of their class citizens’ of your company
hire these alternative workers
regularly, as they have specialized members reported having issues will increase not only their
skills and a high level of education getting paid and were owed an engagement, but also the
and experience – and companies average of $10,000 USD in unpaid likelihood that they become
are willing to pay a premium for invoices . The right technology can
13
loyal, full-time employees.
that combination. We found in our help ensure freelancers are paid This becomes a new type of
2020 Pulse of Talent survey that accurately and on time. This helps courtship between worker
freelancers are especially driven by build trust, which gives companies
and employer that improves
flexibility and autonomy. the advantage of attracting and
engagement, and also fosters
keeping the best freelance talent.
the discretionary effort that is
Even if organizations aren’t
becoming harder and harder
looking to hire someone full time,
building long-term relationships to yield.
with good freelancers can save
TED MALLEY | HCM EVANGELIST,
time and increase productivity in
CERIDIAN
the long run. The more you work
with a freelancer, the deeper their
knowledge of that organization
generally becomes, increasing the
quality and speed of their services.
The best freelancers often have
the luxury of choice when it comes
to clients, so companies should
offer an experience that makes
freelancers want to come back.16
Support financial One emerging opportunity that
“
can help organizations improve the
wellness
payment experience for alternative
workers is adopting technology
Pay is an important lever of Giving access to earnings at
that allows workers to receive
engagement for other types of
their earned wages as soon as a the end of a shift or in the
alternative workers, as well. In
shift or project is complete. These middle of a pay period will
our survey, 38% of respondents
on-demand tools give alternative become a differentiator to
identified themselves as working
workers more control over their attract top gig talent. For
independently for one or more
cash flow, which can reduce stress those with multiple employers
companies, such as ride sharing or
and boost productivity.
food delivery services – the type with different pay periods,
of alternative work arrangement immediate access to earned
that’s often referred to as ‘gig work’. wages is critical to making
According to The Federal Reserve’s
ends meet. Companies need
Report on the Economic Well-Being
to evaluate and upgrade their
of U.S. Households in 2018, 58%
systems to prepare for this
of full-time gig workers – nearly 5%
of adults in the U.S. – would have future reality today.
difficulty handling an unexpected
expense 14. Full-time gig workers TED MALLEY | HCM EVANGELIST,
also use alternative financial CERIDIAN
services more often than those
doing it on the side 15.17
Look past the platforms allow companies to create
personalized training experiences for
46%
transaction
employees, which could be extended
to include alternative workers.
According to Deloitte, 46% of HR
respondents to its 2018 Deloitte
Human Capital Trends survey said
Finally, managers should keep of HR respondents to
they are not involved in onboarding
in mind that alternative workers its 2018 Deloitte Human
don’t have to be temporary – they
alternative workers16. Proper Capital Trends survey
can actually become a talent
onboarding of alternative workers said they are not involved
pipeline. In our 2020 Pulse of
has many of the same benefits as
Talent survey, 27% of respondents in onboarding alternative
onboarding full-time employees. It
gives them important context on the
said they use alternative work to workers
supplement their income, and
business, industry, and key players
12% said they do it because they
on their team, helping them ramp
couldn’t find permanent work in
up faster.
their industry. Companies can save
time on recruiting and benefit from
Another survey by Deloitte found
improved speed to productivity by
that more than half of the HR
hiring alternative workers when new
respondents that participated do
roles open up. HR teams can keep
not support training for alternative
track of talented alternative workers
workers17. Organizations can benefit
who are interested transitioning
from offering learning opportunities
to permanent roles, taking care
to some types of alternative
to provide them with a good
workers – especially those who
employee experience and growth
work with the company on longer
opportunities along the way.
contracts and have specialized skills.
Companies can train alternative
workers to provide even more
value to the business, while also
keeping them engaged. LearningKey takeaways The alternative workforce isn’t a passing trend – it’s part of a movement toward an entirely different way of organizing work. Companies need to put effort into strategically leveraging and engaging alternative workers to realize the benefits of this growing workforce. This year’s Pulse of Talent report provides important insights on what matters to alternative workers:
19
Personalization Fair compensation Respect
One size does not fit all when it Leveraging gig workers can help Alternative workers, while diverse,
comes to the alternative workforce. your company scale up and down are also similar in many ways to
Companies should make an effort faster and at a lower cost than hiring your permanent, salaried workers.
to understand what these workers staff and laying them off, but if you Take care to treat them as a valued
want – employee surveys are one want to engage those workers and part of the company, rather than
great tool – and personalize their get their best effort, pay them fairly dealing with them in a solely
experience to keep them engaged. and accurately. transactional manner.
Flexibility Mental health
Alternative workers of all types Precarious work situations and job
enjoy the flexibility of their work dissatisfaction can lead to negative
situation. Building flexibility into mental health consequences. Take
your culture for all employees – care to support the total wellness
where possible – will make it easier of your alternative workforce –
for alternative workers to integrate including their financial wellness –
into the existing culture. It will also to keep them engaged and healthy.
make your company more attractive
if you choose to tap this talent pool
for open roles.
The alternative workforce – and what makes it tick – will likely evolve as the world of work
continues to change. But creating the right strategy to engage and leverage them can help
make your entire workforce more successful – now and in the future.Sources
1. 2019 Human Capital Trends, Deloitte, 2019 10. Benedicte Apouey, Mart Stabile, et. al., The Effects of
Self and Temporary Employment on Mental Health:
2. Tom Gresham, Rise and Grind: The Growing Gig The Role of the Gig Economy in the U.K., May 2019
Economy and Its Impact on the American Workforce,
June 2019 11. Jeffrey C. Martin and Wayne Lewchuk, The
Generation Effect: Millennials, Employment Precarity,
3. The Origin of the Gig Economy, 90.9 WBUR Radio, and the 21st Century Workplace, Poverty and
August 2018 Employment Precarity in Southern Ontario (PEPSO),
McMaster University, September, 2018
4. Mark Bergen and Josh Eidelson, Inside Google’s
Shadow Workforce, July 25 12. Cale Guthrie Weissman, How the Gig Economy is
Transforming Retail, July 2019
5. The Alternative Workforce: It’s Now Mainstream,
Deloitte, 2019 13. Freelancers Union, May 2015
6. Economic News Release, Bureau of Labor Statistics, 14. Report on the Economic Well-Being of U.S.
June 2018 Households in 2018, May 2019
7. Julia Carrie Wong, Google Staff Condemn Treatment 15. Report on the Economic Well-Being of U.S.
of Temp Workers in ‘Historic’ Show of Solidarity, Households in 2018, May 2019
The Guardian, April 2019
16. The Rise of the Social Enterprise, 2018 Deloitte
8. Annie Palmer, Uber Says Drivers Aren’t Part of its Global Human Capital Trends, Deloitte, 2018
‘Usual Course’ of Business, September 2019
17. The Rise of the Social Enterprise, 2018 Deloitte
9. Lauren Kaori Gurley, Gig Workers Are Forming Global Human Capital Trends, Deloitte, 2018
the World’s First Food Delivery App Unions,
October 2019At Ceridian, we create innovative technology that organisations around the world use to attract, develop, manage, and pay their people. Our award-winning Dayforce solution helps our customers manage compliance, make better decisions, build great teams, and drive engagement with their employees. Ceridian has solutions for organisations of all sizes. Ceridian. Makes Work Life Better™ www.ceridian.com © 2020 Ceridian HCM, Inc. All Rights Reserved. 114838-100 20200106 CD/C
You can also read
