Giggers should think twice before jumping in
Think creating consumers, not just saving on labor costs
CNBC explores the “greased slide” created by the new tax law, which encourages independent workers to embrace freelance work. Now that small businesses run by individuals can “pass-through” 20 percent of revenue untaxed to the business owner, it appears to be a great time to become a gig worker. However, the lost benefits that come with traditional employment more than offset the tax savings, Miguel Centeno of Shared Economy CPA told CNBC.
Sobering reading for potential giggers. More importantly, it is a wake-up call for companies who have viewed the On-Demand Economy as a way of cutting costs and obligations to workers. The formulae for loyalty used to lie in the job benefits society seems to be abandoning. Yet worker retention and job performance excellence are still the keys to good customer experience and valuable products and services.
On-Demand companies must tackle the problem of portable benefits and the establishment of a meaningful relationship with workers that allows them to happily identify with the brand they currently represent. A worker may rep multiple brands during a single workday, but they still need to feel the pride and opportunity provided by a satisfying living wage with a path to retirement.
If companies treat On-Demand solely has a cost-saving strategy, they will drain the economy of consumers. That will backfire on everyone.
