
In a recent article for Shareable, Cat Johnson (@catjohnson) discusses the results of a survey that shows some on-demand workers might not want employee status. There has been a lot of talk about whether peer-to-peer companies should classify their workers as employees and provide the necessary benefits. Recent results from a survey of “Peers” community members show that while the employment benefits are desired, many on-demand workers may not want the classification.
However, the small size of the survey (255 participants) indicates that the results may not be applicable to a larger group and more directional. Regardless, the results were interesting as only 15% of the respondents said they wanted employee status while 50% preferred a new classification. Of the workers who work less than 5 hours per week, 25% wanted employee status in comparison to the 10% of people who work more than 40 hours per week.
Robin Chase, co-founder of Zipcar and author of Peers Inc stated in an interview with Shareable that there is a need for a new set of rules to apply to these new gig economy workers who earn income in a variety of ways.
“I like the idea of creating a third path for new economy workers, in addition to W2 employees and 1099 workers," she says. "What I like about the third path is that we can avoid arguing about whether the future holds more W2 (full-time) or 1099 (part-time) work. Those distinctions and employment that conforms to those ideas can keep going on. Let’s also create a new path, a third way that protects people working several jobs simultaneously on the common pool platforms.”
At the top of the list of benefits lies health insurance, expense reimbursement and disability insurance. 78% are willing to commit to working a minimum number of hours per week (20) to receive benefits. Many companies limit the number of hours per week classified employees can work to avoid additional government-worker protections, and only 40% of respondents were willing to limit their hours. As Shelby Clark, CEO of Peers said,
“[W]orkers desire (and need) affordable access to benefits, and are willing to make certain concessions in order to get them,” writes Clark, “but many do not want to be classified as employees. Unfortunately, today’s employee classification and benefits systems do not fit this reality, and instead force a choice between flexibility and stability. Workers deserve more.”
These workers now make up over 40% of the US workforce, so it’s evident that freelancers and on-demand workers need a new employment model.
Read source article here