There’s a lot of talk about the future of work and the coming paradigm shifts that are altering the ways we live, work and earn. As COO of Snagajob, I get to see first-hand the trends impacting our audience: hourly workers and the businesses that employ them. Below are four key patterns we are seeing as well as some ways workers and employers can better adapt to the ever-changing workforce landscape.
1. Hourly workers are a dominant force of the future.
This isn’t the workforce anyone could’ve predicted just a few years ago. Today, the majority of U.S. workers — nearly 80 million —are hourly workers. And given that 59% of the U.S. workforce is now hourly, it’s probably a good idea to understand exactly who this increasingly powerful driver of the workforce is and what they care about.
We, in partnership with LinkedIn, surveyed over 1,000 hourly workers and found that they’re young -- 71% of hourly workers are under 30 years old. Interestingly, the hourly workforce in the U.S. is more educated than many realize; nearly half of hourly workers over 30 received higher education, with 15% in possession of a bachelor's degree or higher. The fastest-growing employment sectors among this group are engineering and health care. But no matter their education level or age, among the most desired perks for hourly workers, is a flexible schedule.
So, what does this mean for businesses trying to appeal to this group? They need to understand workers’ motivations, tastes and preferences and deliver attractive job perks, such as flexibility and growth and development programs.
2. The desire for flexibility is feeding the gig economy.
Another key trend pointing to the future of work is the rise of the gig economy. While it’s difficult to nail down an exact headcount on gig workers, we do know that since the end of the great recession the number of gig and temporary employees in the workforce has increased substantially. That figure is only expected to grow, making the sector a critical force within the labor market.
This means that the unique needs and challenges of hourly workers and their employers deserve special attention. Thankfully, through efforts like that of Senator Mark Warner, some key thinkers in policy are starting to propose programs that will take this new way of working into account.
3. People and technology will be dancing through work together.
Whether it’s kiosks in McDonald’s or drones from Chipotle, many companies are toying with automating parts of their businesses. This means certain jobs done by people today will be done by machines tomorrow.
According to an Oxford study, 47% of total U.S. employment is in the high-risk category, meaning that a large swath of occupations, such as transportation and production jobs, could become automated over the next 10–20 years.
What does this mean for workers, and what can be done about it? As technology races ahead, workers will need to double down on job skills that are immune to automation — jobs with tasks that require creative and social skills. Hospitality roles, for example, in retail, restaurants, and businesses like hotels will always need the human touch to create meaningful guest and customer experiences.
4. Many people need more work to live a fulfilling life.
Contrary to popular belief, the major employment issue facing workers today isn’t unemployment, it’s underemployment. In the current labor market, many people want more hours, are having to drive farther for their jobs or are being paid less than they’d like. According to the Bureau of Labor and Statistics, 62.9% of civilians are active in the labor force and 4.3% are unemployed. While those numbers may look promising, the number of people who are underemployed is on the rise, according to a report from The New York Federal Reserve Bank.
One of the largest contributing factors (especially for the hourly workforce) is that businesses and employees tend to be highly inefficient. There are employees who have the time to work, but they’re not working maximum hours, and businesses are routinely paying workers for overtime due to understaffing. Employers must understand the core needs of hourly workers and find the best ways for their business to address them. There are many ways to do so, including using scheduling and performance management systems, surveying staff to develop flexible work programs and creating a results-oriented work environment so workers are incentivized.
Ultimately, employers want whatever solution they choose to improve workplace productivity, not hamper it — so they need to think it through and consider what would work best for themselves and their workers.
As we move each day toward the future of work, the trends above are the ones everyone should watch. Employers should aim to help businesses better understand the changing preferences, needs and interests of today’s growing hourly and gig workers, so they can train better, hire smarter and make sure everyone is optimally employed.
