The contingent workforce currently makes up 40% of the U.S. workforce; by 2050 it’s expected to climb to 50%. Whether someone is looking for a side hustle or seeking a temporary position in-between jobs, there are more ways than ever for people to pick up flexible work. Workers not only have traditional staffing firms to turn to but also app-based platforms and gig marketplaces, too.
If your long-standing staffing firm wants to secure enough candidates to keep your clients happy, it has to compete with those platforms and marketplaces. And in order to compete with them, you need to embrace modernized payments.
Before we get into the details of modernized pay and what it can do for your staffing firm, let’s back up a moment and examine why the contingent workforce has seen such explosive growth—and why that makes it all the more important to deliver what today’s workers want.
What explains the rise in contingent work?
The entire U.S. workforce experienced a huge shift throughout the pandemic and the Great Resignation, when more than 50 million workers quit their jobs. People of all generations—but especially Gen Z and Millennial workers—were leaving their jobs in search of better flexibility, autonomy, and work-life balance.
Contingent work offers an alternative to what some people feel are the confines of a 9-5 job. Here are a few reasons today’s worker may be more eager to seek contingent work:
- More flexibility. Attitudes about work-life balance are changing across generations, and many people prefer the flexibility that temporary work can provide.
- Ease of hiring. Some people may be pursuing temporary work due to it being easier to secure contingent positions than a traditional 9-5 career.
- Increased control. Picking up contingent work on an as-needed basis can help one feel more in control of their earnings, as opposed to working a job with a stagnant salary or base pay.
Why meeting the demands of contingent workers involves modernizing payments
This overall desire for more flexibility and control is at the heart of why contingent work has become more popular than ever before. And it’s at the heart of why offering a modernized payments experience is so crucial if you want to attract today’s candidates.
Just what does modernized pay look like? Fast. Digital. Seamless. Workers want to get paid as soon as possible after work is completed—whether that’s after each shift, at the end of each day, or every week.
The traditional bi-weekly pay cycle hasn’t been cutting it for most Americans for a long time. Case in point: 62% of U.S. consumers live paycheck to paycheck, including 48% who earn more than $100k annually. Plus, 75% of Americans say they want to get paid each day. Many app-based platforms and gig marketplaces have realized this and accelerated the traditional biweekly pay cycle—with some even providing payouts after each completed shift or unit of work.
This payment flexibility and speed complements the overall flexibility and control contingent workers want. Being able to work and get paid that same day is an empowering feeling—one that puts the contingent worker in the driver’s seat of their own earning potential.
Finding the right payments path for you
There are plenty of paths to modernize and accelerate payments: it’s not a one-size-fits-all approach. Our Guide to Accelerated Pay can help you determine which one might be the best fit for your staffing firm. You can offer everything from percentage-based pay to earned wage access or daily payouts—it’s all about finding the choice that fits your workforce.
The accelerated growth of the contingent workforce calls for accelerated, updated payouts. In order to navigate the competition from app-based platforms, your staffing firm needs to prioritize fast, digital payments to meet the demands of today’s workers—and fill more roles for clients.
