COVID-19 has shifted the way consumers consume retail, food, services, and more. As such, businesses have had to adapt to the changing landscape, with on-demand services seeing a significant rise. With businesses shifting to remote work, contract/freelance or delivery methods in this current climate, the need for scaling a gig workforce has become crucial to adaptability.
And when it comes to said gig workforce, having the proper payment cycles and systems in place to support them can set your business apart allowing you to thrive and scale in the current economic state.
So, how can you easily implement new payment strategies to scale your gig workforce for success?
1. Add Flexible Payment Methods
With over 36 percent of the U.S. workforce relying on gig work in recent years to supplement a portion of their income, gone are the days of traditional payroll cycles and workforce needs. Many gig workers look to alternative banking methods, or other means of separating work and personal expenses. This means that disbursement methods like cheques just aren't going to cut it these days.
Especially during COVID, and the shift to digital and online services, the demand for workforce payments to reflect this shift has been a selling point in growing and retaining your workforce. Providing multiple payment methods to choose from such as prepaid cards, direct to bank account transfers and more, allows your workforce the flexibility to choose how they are paid.
This flexibility of choice in how they are paid, helps build brand loyalty and decreases gig workers turning down your jobs due to a lack of compatible payment methods. At the end of the day, it's all about being adaptable not only to the economy but also the needs and demands of your workforce.
2. Real Time Payments
Along with the flexibility of choice in payment methods, comes the demand for immediate payments. Traditional pay cycles like bi-monthly, monthly, and so on, work for traditional, salaried employees, but when it comes to a gig workforce that executes one-off, on-demand services and sporadic hours, these pay cycles tend to lack what this workforce needs.
Nearly 84% of gig workers have said that they would complete more gig work if they were paid as the job was completed, and yet, only 17% of gig platforms support this demand for immediate disbursements. Integrating real time payments via direct to bank account transfers doesn't have to be a costly, or time consuming project either. And it can offer great benefits for not only scaling your workforce by meeting their demands, but also helps to simplify your internal cash flow management and operations, significantly reducing reconciliation processes.
3. Expand Your Gig Workforce Base
Like we've already stated above, many gig workers have started looking at alternative banking methods, and with 25% of American households underbanked, integrating compatible and accessible payment methods that serve a multitude of users could really help scale your workforce base. In Canada alone, 350,000 temporary workers still get paid with cheques. This means if you're unbanked or underbanked and subscribe to alternative banking methods, the cost of cashing that cheque might not be worth the hassle, and they may move onto a company that meets their payment needs. As a company looking to scale your gig workforce during COVID-19, it's crucial to be as adaptable and flexible as possible. Gig workers are not the traditional 9-5ers we're used to, and in order to get the most out of your workforce, it's crucial to integrate easy, flexible payment systems that support their needs.