How One Gig Platform is reinventing the worker experience
Among the victims of the pandemic: the economy of odd jobs. As valued by PYMNTS, 40% of gig workers have lost at least $ 10,000 in income since the start of the pandemic. This implies a significant economic impact, given that 53 million people in the United States are on-demand workers.
On a good day or a good month, the nature of working together can be described as volatile. In today’s economic climate, stable work – and regular paychecks – are proving elusive. Sometimes concert workers have to tap into alternative (and sometimes expensive) sources of funding.
To this end, as Constant CEO Adam roseman said Karen Webster, the platforms can help gig workers find stable work and set and meet financial goals at the same time – a combination of job hunting and money management.
Navigate the platform
The platform seeks to help freelancers find flexible, project-based work, searchable by location and career interest – and they can select jobs that match desired income levels. In terms of browsing the site and choosing among independent and financial well-being opportunities, individuals sign up to browse work from home, full or part-time positions, or work “anytime.” They can also sign up to create accounts that all follow earnings through various workflows. Elsewhere, Steady Income Boosters offer users incentives to sign up, for example with Postmates, and to receive cash payments directly to their bank accounts.
From the ability to apply these incentives directly to bank accounts: “What we have now is the ACH and integration with our bank account link as well,” explained Roseman. “If they complete any of these boosters, it will serve to improve their financial health. They can receive this money from us immediately – and this can prevent users from needing to go out and borrow funds. “
Roseman described the Steady app as a “one-way market,” where the business is not paid by employers (other than revenue boosters). As he told Webster, “The market for financial services and benefits for us is really, it’s two things. First, it is a mechanism for us to monetize since we are not monetizing the employer. The second is the fact that we view jobs as income.
For low- and moderate-income workers, he said, decisions about where to work, how to spend time and, of course, what income is coming in are critical.
He said that the exploitation of data that can be used for expense management can be used by workers together to increase their personal income or turnover.
While Steady wants to help people solve underemployment issues, Roseman said the month-end expiration of additional unemployment benefits ($ 600 per week) through the CARES Act presents new opportunities for the company, which has 2 million workers. on its platform and an overview of verticals as vast as catering and transport.
Looking for a primary income
“You’re going to have 40 million people whose primary use case is going to find primary income and additional income,” he said.
Even with Unemployment Insurance, the aggregate income of a significant percentage of Steady workers is down 25 percent, and without the increase it would have fallen by 50 percent.
To promote personalization and access to the platform’s job search and financial management postings, he said, Steady requires users to link bank accounts to the platform through the aggregator. data Plaid. Through this connection, Steady offers an income tracker that can help concert workers gain personal finance information, manage expenses, and plan for tax season.
The upcoming features will allow users to set monthly income goals. Expense management is particularly critical, where 32% of Steady’s base generates overdraft fees or about a third uses cash advance services.
For the future, “there is currently a huge pool of workers with very common challenges who do not have the capacity to aggregate purchasing power and lead this collective bargaining and this positive change,” he said. he declares.
Digging a little deeper, he said there has been growth in non-discretionary retailing, as grocery delivery has peaked (and some grocers are reopening). From an expense management perspective, it is not viable to continue ordering in restaurants. There is also a growth in contact tracing positions and working from home customer support services.
“There are a lot of people who come to our platform because they aren’t making enough money from their main jobs to save for retirement, save for a down payment on a house, build a safety net. There are a lot of these products that allow them to earn extra income, ”he told Webster.