It’s no secret that companies are reducing the number of employees in their workforce and relying more on workers in the Gig Economy, including independent contractors, consultants, and freelancers. Employees make-up only half of the workforce at some tech companies and are already the minority at Google.
It's also the most competitive labor market for skilled workers that we've every seen!
If we were designing a labor market from scratch today, we wouldn’t create one that provides benefits and protections only to full-time employees. It wouldn’t make sense given the many ways that people choose to — or must — work: independently, part-time, on the side, as a contractor or freelancer, or on-demand. An estimated 30% to 40% of today’s workforce are independent workers, either part- or full-time, and the numbers are only expected to grow. If we were designing a labor market today, we’d create a system that supports everyone who works.
About 33 percent of working Americans are employed in a part-time, independent contractor or contingent positions rather than full-time, permanent jobs, and most of them lack employee benefits, a new study shows. Employers that are anticipating an increase in part-time and long-term contract workers can better compete for talent by providing their entire workforce with employer-sponsored benefit options, including access to employee-paid voluntary benefits.
Part-Time Nation, a report on the latest findings from Guardian Life Insurance Co.'s annual workplace benefits study, reveals that the lack of employee benefits for part-time workers makes them financially vulnerable. For instance:
• Only 25 percent of part-timers have an employer-sponsored medical plan (compared to 80 percent of full-timers).
• Just 32 percent of part-timers have an employer-sponsored retirement plan (compared to 69 percent of full-timers).
• Less than 20 percent of part-timers have dental, disability or life insurance benefits at work (compared to more than half of full-timers).
• The study draws on a survey conducted in spring 2018 with responses from representative samples of 1,712 full-time and 493 part-time permanent and contract workers.
More Americans are seeking greater autonomy and flexibility in their career than they can find in the traditional 9-to-5 model. What's the key to attracting & retaining talented worker? Great employee benefits!
9 Employee Benefits You Must Offer to Attract & Retain 1099 & Part-time Employees
Medical Insurance
Medical insurance should be a given for any type of business. Make sure that the coverage you provide is an all-inclusive package with everything from preventive doctor visits to surgery and prescriptions. It will not only keep your employees from looking elsewhere, it will also save you money on tax breaks in the future.
Vision Care
Another health-related insurance that is a must-have is vision care. Plans that include eye exams, prescription glasses and/or contact lenses can ensure that your workers can be prepared for any ongoing vision costs.
Free Meals
Offering free meals can not only be enticing to employees but it also keeps them on the job. Rather than going out to local lunch spots, employees are more likely to stay on the premises and network with their colleagues.
Life Insurance
Whether you pay the premiums or they are deducted from the employees’ salary, life insurance provides the beneficiary with a death benefit upon the death of the employee. While it is not a required benefit, it offers a certain level of security and peace of mind.
Retirement Plans
There are many different types of 401 (k) plans that you can offer employees. If you feel your company is not financially strong enough to offer dollar for dollar matching, there are other plans that don’t require such a long-term commitment.
Fitness Package
If you want your workforce to stay healthy, consider offering a fitness package. This could include a membership to a gym or having gym on-site as a cost-effective way to keep them in shape. Healthier and more fit employees are happier and less likely to take off sick, so you’ll benefit both ways.
Employee Assistance Program
An EAP is an intervention program created to help employees to resolve many of their personal problems. It can provide counseling in marital, financial, or emotional issues so they can better focus on their job.
Flexible Work Schedules
Get rid of the standard nine-to-five work schedule and allow your employees to work when they feel they can be most productive. Flexible work schedules give employees a way to better balance their work with their lifestyle without having to spend one penny more.
Pet Insurance
In most American households, pets are not just appendages that you can enjoy but they are a part of the family. It can be very rewarding for an employee to discover that their pets can have health, life, or accidental insurance just like the rest of the family.
Summary
Many of today’s Gig Economy workers are looking for a new career opportunity but can not make the leap because they can’t secure an excellent benefits package. This all changes with Blackrock Benefits, we have custom-designed plan to meet every unique workers need.
Learn more today, visit: www.BlackrockBenefits.com