While hiring rates continue to outpace quit rates, companies are still struggling to fill jobs. Moreover, the lack of productivity is costing businesses billions. How many billions? A recent survey estimated labor shortages cost businesses nearly $738 billion from 2020 to 2021. With worker shortages anticipated to last through 2023, many companies may to find alternative sources of labor. One often overlooked option is the flexible and scalable workforce of independent contractors.
How can independent contractors help you?
Freelancers, or independent contractors, typically participate in earning activities outside of the traditional 9-5 employment. They tend to be more open to the atypical shifts that come with flexible work. They also have the capability of filling all types of high-demand, entry-level jobs in the hospitality industry, warehousing and manufacturing, retail, and so much more. Fortunately for your business, the pool of gig workers is growing. In fact, it expanded to 57.3 million people in 2021. This growth is expected to continue, with freelancers estimated to surpass traditional employees by 2027
Temp work and independent contractors aren’t new.
Making a living outside of traditional employment has existed for decades. However, technology has in recent years enabled people to easily connect with more opportunities that fit their skills, interests, and objectives. After ‘The Great Resignation,’ opportunities within the temp workspace have only grown as workers continue to leave their traditional jobs to meet their personal and professional needs as independent contractors.
Who is engaging in temp work?
Independent contractors span all demographics and a multitude of industries. Internal data and surveys performed by Wonolo in 2022 showed that Baby Boomers (ages 57 to 75) and Generation X (ages 41 to 56) worked more than any other age group in the gig economy. Furthermore, Gen X took home more money from temp work per month on average than any other generation. While Millennials make up the largest pool of total independent contractors currently using Wonolo (53%), Gen Z is gaining ground. They were the only generation that saw an increase in percentage of overall jobs completed between 2019 and 2021.
People choose flexible temp work for a variety of reasons:
- Saving money
- Paying off student loans
- Earning money while attending school, working another job, and/or pursuing other business opportunities
- Flexibility, autonomy, and discretion
Some workers are closing in on retirement and picking up gigs for a little extra cash, and others are still working other full-time or part-time jobs and choosing flexible temp work to supplement their income. No matter the reason for taking on a side hustle, these workers are often individuals who desire more flexibility in their schedule – which platforms like Wonolo provide.
Temp jobs are varied.
While common examples of work that independent contractors are performing include rideshare, delivery, and maintenance services, their temp work also includes:
In various industries such as retail and supply chains, independent contractors enable businesses to expand and retract their labor and scale to meet business needs. In addition to traditional short-term jobs, temp work can also take on the form of ad hoc and project engagements, creating a long-term labor solution.
Filling Your Job with Independent Contractors
With companies needing workers now, they don’t have weeks to find the right person for the job. Wonolo’s two-sided job marketplace helps connect businesses with high-quality workers to fill jobs of any length across a long list of industries. Businesses can leverage this growing pipeline of independent contractors to scale labor needs, both short and long-term, so they can accomplish their goals. Visit Wonolo’s website to learn more.