In the Gig Economy, Payments Are a Perk
In the United States alone, there are more than 75 million gig workers. This growing industry has completely transformed the business landscape. But, when it comes to business perks, on-demand workers can’t rely on traditional benefits like health insurance, paid sick days, or retirement plans. Still, there are a whole host of privileges that come with a more unconventional career path.
In recent years, more U.S. workers have become part of the gig economy, with the digital and tech sectors experiencing rapid growth. Some common networks in this space include:
- Ad Networks. Companies that serve as the “middle man” between advertisers and websites that sell ad space. Ad hosts leverage these connections.
- Affiliate Networks. Web publishers or affiliates, who have ad space on their websites where companies sell their products and services.
- Crowdsourcing Networks. Networks where companies outsource some or all of their tasks to third parties.
- Online Marketplaces. E-commerce platforms where merchants sell their products and services.
What Are the Perks of the Gig Economy?
Since “Matching 401(k)” and “Bring Your Dog to Work Day” aren’t standard perks of the gig economy, new-age workers find advantages elsewhere.
In the gig economy, people work as little or as often as they want—wherever they are in the world. This fact is why this type of work suits people who juggle other responsibilities, such as getting a degree or raising a family. Flexibility also gives people the time to pursue additional passions like travel.
In a recent study of Uber drivers, 73 percent said flexibility was more important than a traditional job.
With a conventional job, there is always the risk of being laid off or fired, sometimes at a moment’s notice. Gig jobs don’t operate like that—with so many opportunities available, there’s always available work in the market.
The gig economy lets workers retain their independence. According to ThoughtCo, “Gig economy workers have the unlimited independence to do their work [exactly] how they want.”
People in the gig economy have more variety than many traditional jobs, so there might be less of the monotony that comes from working the standard 9–5, Monday through Friday.
As many traditional industries decline, the gig economy thrives. With more opportunities for workers than ever before, 90% of gig workers think that the sector has an even brighter future ahead.
But the Greatest Perk of All?
Payments. Flexibility and independence are only perks if you get paid on time.
Networks are dependent on sound payment systems that expedite financial transactions between companies and workers. People with gig jobs expect speedy, secure payments, and only the best technology solutions facilitate this process.
For gig economy workers and the networks that employ them, it’s imperative to eliminate payment processing friction while improving partner satisfaction and reducing churn.
These are the four significant benefits of automated payments for networks that partner with gig workers:
1. Accelerate Growth
Networks can take advantage of their global partners, reduce operational friction around payments and communication, and grow their business by leveraging providers from all over the world.
2. Eliminate Manual Processes
Manual effort can lead to partner payment errors—with automation, networks can eliminate 80% of the payment workload through self-service, automated communications, and a unified banking interface.
3. Improve Partner Relationships
Networks that offer the most flexible payment options will attract and retain the best partners. Automation will improve service quality while reducing the risk of paying fraudsters.
4. Effortless Tax Compliance
It’s imperative not to wait until year-end to hunt down partners for tax forms. Automation allows networks to collect W-9, W-8 series, and VAT ID forms upfront and produces submission-ready 1099 and 1042-S reports.
With 85% of workers indicating that they would work more often if paid faster, it’s clear that payments are a “make it or break it” perk for the gig economy.