Employers risk losing talent to the gig economy if they don't prioritize flexibility. Here's what they can do

The workforce has made itself pretty clear that flexibility is non-negotiable. And if they don't have it at their corporate jobs, they're willing to turn to gig work to find it. 

Seventy-four percent of Americans under 45 believe flexible gig workers will eventually drive America's economy, not traditional full-time workers, according to a recent survey conducted by workforce management platform Jitjatjo. Traditional employers may need to start thinking about how they fit with employees' changing needs. 

"The shift in priorities we're seeing is driven largely by the younger generation, but the pandemic also had a little bit of a hand in that as well, as challenging and terrible as it was," says Bethany Kemp, SVP of growth operations at Jitjatjo. "Out of that came a prioritization of close relationships, of engaging in activities that spark joy and of flexibility more than the previous generations and workforces did. And the gig economy provides them with those opportunities." 

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Unlike the traditional 9-to-5 employees, gig workers — such as delivery drivers or freelancers — generally have more control over their schedules, which leads more than half of respondents to think gig workers are happier than office workers, according to Jitjatjo's survey. But what gig workers make up for in flexibility, they lose in benefits. Currently, 54% of gig workers don't have access to employer benefits, according to gig work insights platform Brodmin, while only 40% have medical insurance and 20% receive life insurance. 

"When an employee decides to make gig work their primary source of income, there's a possibility that they could fall short [financially]," Kemp says. "So there's a little hesitation about giving up that security you get in a traditional workplace arrangement." 

In fact, 45% of all workers report a lack of benefits is the biggest challenge to being a contingent worker, Jitjatjo found. If gig work met those needs, however, 44% of U.S. respondents across all age groups would consider leaving their full-time role for more contingent work. And while there has been progress in the development of benefits for gig workers, traditional employers can start filling those gaps themselves, according to Kemp.  

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"It doesn't just have to be about creating opportunities for temporary workers in the future," she says. "It could be about starting to provide flexibility for their internal workforce and evolve the ways in which they work so that it mirrors gig work more."  

Companies can start by simply shifting how they handle scheduling internally to allow their workforce to be more selective in when they want to work, or what their shifts look like. They can also make assignments more project-based so as to create even more flexibility on how to pace the work they do. And while it may take time and effort to restructure some of their common practices, companies may start to see an increase in loyalty and a reduction in turnover as a result, according to Kemp. 

"It's important to work for an employer that meets not just your work requirements, but your lifestyle and well being requirements, too," she says. "The ability [for employees] to spend their time freely while still feeling challenged and secure in their careers is what will keep them invested in the end."