Connect with us

Workers

Differences between skilled freelance and gig work

Published

on

Those who have been laid off or furloughed from their jobs are looking for new and flexible ways to make money during these hard times. It’s become evident that many of them are turning to gig work and online freelancing to help, as many platforms, including Fiverr, have noted an uptick in registrations during this time.

According to a recent study by ADP, the gig economy has increased by 6 million people since 2010, as app-based ride-sharing, home rental, and food delivery services have literally changed the way we live. So it’s no surprise that conversations around the gig economy seem to have grown exponentially over the past decade too. Many of the more policy-oriented conversations point to broader concerns about the long-term financial security and safety of these types of workers. Many have cautioned against gig work, pointing to long and irregular working hours, a lack of stable income, and the absence of important social safety net protections such as health insurance and retirement savings.

This is an important and urgent conversation, but it’s also important—as COVID-19 has so harshly revealed—that we consider the differences between gig workers and skilled freelance workers. Lumping them together does a disservice to both groups. One thing that is becoming increasingly clear as the COVID-19 pandemic progresses is that digital workers, particularly skilled digital freelancers, are well positioned and well equipped to survive, succeed, and thrive.

For example, skilled freelancers are able to choose their own rates and dictate their own hours, taking on as much or as little work as they want at their desired pay. They also have the opportunity to work across a wide range of industries depending on their skill set, including graphic design, content writing, and web development. Additionally, while the rest of the world is taking part in the largest work-from-home experiment ever, more than 84% of freelancers were already working from home, with a strong clientele already built up.

Moreover, a recent survey done by Fiverr found that 71% of skilled freelancers across the U.S. are highly satisfied with their work and consider one of the top benefits of their work to be having control over when and how they work. For comparison, a separate survey found that 55.5% of Uber and Lyft drivers were dissatisfied with their work in 2019 and that 68% of drivers quit within their first six months of getting started.

On the other hand, gig workers are being tasked with the horrific decision of whether to risk their personal safety and deliver groceries and provide rides, or put their physical health ahead of their financial health and not work at all—a difficult decision for many who not only rely on gig work income but are also considered essential workers during this pandemic. According to a recent survey by Gig Workers Rising, a campaign aimed at educating and supporting app and platform workers, 53% of surveyed ride-share drivers were very concerned about reduced earnings during the pandemic, and 43% were concerned about contracting COVID-19 while on the job.

While these subsets of workers have their differences, and it is important to recognize them, they are all people who work hard and make up a huge and growing sector of the labor market, and they deserve the same protections and rights as other workers.

First off, yes, it’s great that now independent contractors, freelancers, and gig workers are eligible to apply for loans and grants under the CARES Act. However, protections such as these need to become standard practice, put into law immediately—not just a privilege evoked during a global crisis.

These workers also deserve protections from both a financial and a health standpoint. For example, legal protections to help freelancers get paid on time would help make it easier for them to earn a sustainable living. Freelancers working on platforms are most often protected in this sense, but offline freelancers have zero support should a client defer on their payments. From a healthcare standpoint, a portable benefits system is necessary, as healthcare is one of the top concerns among freelancers. Freelancers and gig workers are currently responsible for paying astronomical fees for healthcare, a struggle that is even more glaringly problematic during a global health pandemic, but one that a portable benefits system could solve.

Gig workers such as drivers and delivery people are on the front lines these days, and they need to be rewarded, recognized, and protected as such. On the other hand, freelancers such as social media marketers and web developers are helping to keep America’s small businesses going by providing them with the services they need to move their businesses online or improve their existing online presence. While the work they do is different, it doesn’t make any single worker more or less important than the other, and it’s important that policymakers in D.C. see the situation as such.


Brent Messenger is the vice president of public policy and community at Fiverr



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Workers

Buckle Reinvents Insurance Model for Gig Economy with $31 Million Series A Funding

Published

on

By

JERSEY CITY, N.J.–()–Buckle, a tech-enabled financial services company, has filed its Regulation D and disclosed it raised $31 million through its Series A funding round co-led by HSCM Bermuda and Eos Venture Partners. Addressing gaps in conventional insurance policies that leave gig workers underinsured, Buckle is using the funding to reinvent the insurance model with new sources of data to underwrite risk, making insurance comprehensive, affordable, and easy to obtain for rideshare drivers.

“Whether rideshare drivers are on duty or driving their family around on personal time, Buckle will have them covered,” said Dustin Walsey, co-founder of Buckle. “We are excited to offer comprehensive, easy-to-understand insurance to active rideshare drivers for overall better personal protection.”

In 2019, Buckle launched its core rideshare insurance policy that combines personal and commercial coverages, in collaboration with Munich Re’s Digital Partners. Earlier this year, it expanded the program through a partnership with Lyft.

In June, Buckle announced the acquisition and recapitalization of Gateway Insurance Company (Gateway), including its 47 state insurance licenses. Now, through Gateway, Buckle is expanding insurance coverage to include transportation network companies (TNCs), traditional taxi, limo, and livery businesses using the Curb app.

“The ride-hailing market is expected to grow globally to approximately $260 billion by 2024,” said Vikas Singhal, Partner and CIO of Insurtech at HSCM Bermuda. “As the market grows, demand for straight-forward and affordable insurance coverage for both providers and TNCs will grow with it. We’re excited to help the Buckle team take the company to the next level.”

“The rideshare and dispatched delivery markets need specialized insurance expertise,” said Jonathan Kalman, Founding General Partner at Eos Venture Partners. “Buckle has built a comprehensive insurance solution to this growing market.”

Buckle plans to launch other products and partnerships as it expands nationwide.

About HSCM Bermuda

HSCM Bermuda is an asset manager focused on investments in the Re/Insurance and Transportation sectors. HSCM was launched in 2016 and focuses on core economic sectors that are likely to outgrow global GDP, offer low correlations with broader markets, and are experiencing a shift from balance sheet and to market financing. For more information about HSCM Bermuda, please visit www.hscm.com.

About Eos Venture Partners

Eos Venture Partners is a global independent Strategic Venture Capital Fund focused exclusively on InsurTech, investing in early and growth stage technology businesses that accelerate innovation and transformation across the insurance industry and value chain. Eos was founded in 2016 to bridge the “digital chasm” between InsurTech start-ups and traditional (re)insurance companies. Investors in the Eos fund, EVP I, are from the insurance sector, forming a close strategic relationship with the Eos team to capture both strategic and financial value from the innovation and technology change in the insurance industry. See more at: www.eosventurepartners.com.

About Buckle

Buckle offers total insurance coverage specifically for rideshare and other gig economy providers and TNCs, looking to get coverage that’s fair and simple. Buckle Rideshare Insurance isn’t a gap product that supplements an existing policy, but replaces a driver’s current auto insurance, providing continuous 24×7 coverage on-and-off the clock with one low rate. Connect with Buckle on Facebook and LinkedIn and visit www.buckleup.com.

All trademarks recognized.

Source link

Continue Reading

Workers

CERB 2.0? Trudeau Hints at New Benefit for Gig Workers

Published

on

By

The CERB may be winding down, but that doesn’t mean out-of-work Canadians can’t still get benefits.

That’s the takeaway from a recent statement by PM Justin Trudeau, who announced that his government had been working on a “21st century EI system.” In covering Trudeau’s statement, the Canadian Press reported that the revamped EI system would replace the CERB, bringing more Canadians under coverage — including one group of Canadians who had been sorely neglected until the CERB came into effect.

An “EI-like benefit” for gig workers

One of the main beneficiaries of Trudeau’s “transitional EI-like benefit” would be gig workers. Under current rules, gig workers are considered self-employed. That means that they’re opted out of EI by default. Gig workers can indicate that they want to pay in to EI, but usually don’t. The self-employed pay twice the usual rate on CPP; passing on EI premiums is a way to partially offset that extra tax. As a result, many self-employed Canadians aren’t covered by EI.

Trudeau’s new EI benefit could remedy that. While details on the plan are scarce so far, it appears that there will be an interim benefit to cover non-EI eligible Canadians, followed by a totally revamped EI system. It’s hard to predict exactly what the latter will consist of, but the former will probably be regular EI with looser eligibility requirements.

Why this is good news

While many out-of-work Canadians may bemoan the loss of the $2,000 a month benefit, it may ultimately be a good thing. The CERB has always been beset by concerns about eligibility and fraud. Many Canadians have reported being “scared” to spend their CERB money, and ominous CRA statements probably haven’t helped with that.

Getting back to EI could therefore be a welcome development. While the average monthly amount isn’t as high as the CERB, EI has fewer eligibility questions hanging over it. As a result, individuals receiving EI may feel more free to spend it.

For example, if you received $1,000 a month in EI, you could spend that money on investments. If you took $1,000 worth of EI and spent it on shares in Fortis, you’d be within your rights to do so. After all, it’s a program you paid in to, and if you’ve been laid off, you’re eligible to benefit from it. It doesn’t matter how you spend the money.

With the CERB, it’s not quite so simple. There’s been a big question mark about eligibility ever since the program began, and spending CERB money on non-essential items has been frowned upon. If you took $1,000 worth of CERB money and bought FTS shares with it, that wouldn’t make you ineligible. However, it could be inconvenient if the shares declined in value, and you were later forced to repay the CERB. With EI, you always know that you’re entitled to the money you’re getting, as applications are pre-screened for eligibility. As a result, you can sleep soundly no matter how you spend the money — be it on groceries, Fortis shares, or anything in between.

On the topic of investments…

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada‘s market-beating team has just released a brand-new FREE report revealing 5 “dirt cheap” stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don’t miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!


Fool contributor Andrew Button has no position in any of the stocks mentioned. The Motley Fool recommends FORTIS INC.

Source link

Continue Reading

Workers

Observers call on National Wages Council for more aggressive wage support, office to look after gig workers, Manpower News & Top Stories

Published

on

By

In September and October 1998, as the full impact of the Asian financial crisis on Singapore’s economy became more apparent, the National Wages Council (NWC) was convened a second time that year to revise its annual wage guidelines.

Its original guidelines, issued in May, had called for wage restraint and non-wage cost-cutting measures, as the Trade and Industry Ministry forecast economic growth for the year of between 2.5 per cent and 4.5 per cent.

But as the crisis deteriorated, the growth forecast for the year was revised downwards in June to between 0.5 per cent and 1.5 per cent.

The NWC in November proposed that in addition to a 10 percentage point cut to employers’ Central Provident Fund (CPF) contributions recommended by the Committee on Singapore’s Competitiveness, total wages for 1998 be cut by 5 per cent to 8 per cent, as compared with 1997.

This year, with Singapore headed for its worst recession since independence due to the Covid-19 pandemic, observers suggested that the council consider calling for more aggressive wage support, an office to look after gig workers and pay hikes for low-wage staff.

Manpower Minister Josephine Teo said in a Facebook post yesterday that the NWC will reconvene this year. The council made its annual wage guidelines in March this year.

Institute for Human Resource Professionals (IHRP) chief executive Mayank Parekh said that without the prospect of a near-term recovery of demand, there could be more job losses and wage cuts on the horizon.

“It is timely for the NWC to review its earlier recommendations and seek support for additional measures to safeguard jobs and enhance employability,” he said.

“More aggressive wage measures, higher support for job redesign and re-training and additional guidelines on retrenchment payments could be considered.”

Singapore Human Resources Institute president Low Peck Kem suggested the council look at whether the Jobs Support Scheme of wage subsidies can be extended, as well as the need for funding to facilitate job redesign for future-ready jobs.

It could also propose the setting up of a tripartite office to help and protect gig workers, who tend to fall under the radar because they do not have employers, she said.

National Trades Union Congress (NTUC) assistant secretary-general Zainal Sapari said the NWC should continue to push for wage increases for low-wage workers, even amid the pandemic.

“Instead of recommending a quantum wage increase, I would like NWC to set a long-term target of where wages of these vulnerable low-wage workers who are performing essential services should be at. This could then act as a guideline for the wage increases and the necessary productivity initiatives that must be embarked upon to make it sustainable,” he added.

This is only the fourth time since being set up in 1972 that the council has been convened twice in the same year.

Aside from 1998, it also released revised recommendations in 2001, after the Sept 11 attacks on the United States, and in 2009 amid the global financial crisis.

In January 2009, the council updated its guidelines to recommend – among other things – that companies work with unions and workers to manage costs, such as through wage freezes or wage cuts, to save jobs.

The NWC had in March this year considered whether to recommend reducing CPF contribution rates to cut wage costs.

But Permanent Secretary for Manpower Aubeck Kam had said then that as the Jobs Support Scheme wage subsidy far exceeds the employer CPF contribution rates of up to 17 per cent, the Government did not feel that a cut to the rate was warranted.

DBS Bank senior economist Irvin Seah said that short of extending the JSS payouts for worst-hit industries, a temporary cut in employer CPF contribution rates could be an option the NWC considers.

But he cautioned that such a move would need to be weighed very carefully. “It would be a reduction in workers’ savings, on top of already widespread wage cuts.”

Amid reports of major retrenchment exercises in recent weeks, Mrs Teo also commented yesterday on the Fair Retrenchment Framework proposed by the NTUC last month. It includes protecting the Singaporean core of the workforce, while foreigners with special or critical skills could be retained as well.

She said in her Facebook post that the Singapore National Employers Federation will consider the framework and discuss a mutually acceptable way forward with NTUC.

In the meantime, the Manpower Ministry will continue its work on the Fair Consideration Framework, she said, adding that there would be updates soon.

“Tripartite partners are aligned on one thing – the need to support our workers and businesses through the storm brought about by Covid-19. Much work ahead,” she said.



Source link

Continue Reading

Trending

Copyright © 2019 Gigger.news.