Exploring what assets mean to Independent Contractors

An asset is anything that moves the business forward, from tools of work, community, partnership, upskilling, etc

Photo by Domenico Loia on Unsplash

The first sprint explored what the social benefits scene looks like for gig workers in Kenya. We learned of the experiences of gig workers when accessing what would otherwise be employee benefits if they were in full-time employment. We understood that there are blurry lines between a gig worker and their business.

A freelancer is a business, without him or her there is no work.

Sam, 29, Freelance Software Developer

We also tested a prototype seeking to understand what type of benefits and services are a priority to gig workers. Our initial test focused on insurance, savings, asset finance, and membership discounts. It was clear that anything that stops the business becomes a top priority; with that, we narrowed the study down to learn more about what is considered an asset to the business.

The goal of the study was to identify how selected personas invest in (save for, take a loan, register for a course) skills/assets. By asset, we mean anything that enhances the gig worker’s business/gig. We also sought to identify in what ways can we effectively guide users in accessing assets and make better decisions for their business/gig when acquiring them.

Approach to building products using behavioral science.

From the first study, it was clear that in most cases, what people say they do is different from what they actually do. For the second study, we explored a different approach to the research through more experimental product testing. This is something we seek to do more of as we continue building and developing the perks product. We sought to;

• Conduct experiments to study the gap between what users say they do and what they actually do.
• Be keen on biases based on such things as social norms, optimist, cognitive overload, etc.
• Create meaningful behaviour changes by creating solutions that change behaviour for good.
• Watch what users do and shape the environment to improve the outcome.

We spoke to gig workers/ freelancers in 3 sectors based on persona characteristics created in the first study; content creators, photographers, software developers constituting those who are emerging (less than 3 years of freelancing) and established (over 5 years of freelance). The common theme among the participants and the sectors selected was the constant need to upskill, reinvent oneself and invest in new assets based on the ever-changing trends in their industries.

Gig work has different stages.

In the early stages, the main question they seek to answer is clarifying what to focus on. Here, the gig worker has possibly not settled on a niche, they are still learning the loops. In the middle stage, the focus is on refinement, some business processes have been identified and are possibly undergoing some tweaks, they might also need to upgrade an asset. In the later stage, they are looking to scale, build a team, and separate themselves from the business. We noted that to succeed, it has less to do with the number of years in the gig space and more to do with the skillsets possessed and assets owned.

As we explore the perks product, we sought to know at what stage should we focus on or how can we grow with these independent contractors through the different stages.

While our research focused on understanding the past, the current state, and the why; we were keen to complement the findings through product testing and a closer focus on the behaviours of the participants. Our focus was on:

• Current state — What assets do they have and how did they acquire them? What informed the asset acquisition. With this, we sought to understand the experience in asset access and acquisition and the behaviours that guide them. (social influence, need, emotion, irrational decision, industry influence, etc). For those who had acquired an asset, we wanted to know whether it’s meeting the intended goal and how they measure that.
• Intention — Action gap — It was clear in the first sprint that there exist gaps in asset access, the main obstacle being financing. We sought to uncover other obstacles preventing gig workers from accessing assets that they need and what measures they have put in place, and identifying players who exist to offer access.
• Future state — Perks seeks to empower gig workers to build and grow their businesses. In this study, we wanted to know how gig workers currently measure and track business growth and their plans for their gig.

Key Learnings

• Assets need to differ. Depending on the gig worker stage of work, an asset can be a channel to get started, a channel to get to the next stage, or anything that they acquire to give themselves a competitive edge.
• Succeeding as a gig worker is dependent on many things, key among them; credibility achieved through great work and referrals that generate afterward, the community they have built around their work often used for collaboration and consulting, a business mindset that is tenacious, curious, and being a risk-taker, asset they have to run the business and at times privilege which in this case comes in forms of who you know and access to things you need to get work done.
• On asset acquisition, we learned that renting and hiring are common as is also the desire to own the assets. Those who hire stated challenges with having access to funds challenges keeping up with every new model, and the varying and demanding needs from clients. For most, saving to purchase an asset is common. It was clear that in most cases, the decision to purchase happens when the asset can not be attained any other way. Those who purchase assets stated gauging the return on investment in the long run, which was more of a bet than a clear prediction. Many stated being loan averse after observing others who have sunk into debt traps. The community was key as channels for access by acting as guarantors when hiring assets or collaboration in projects.
• Skills matter even with high-end assets, skills certification acts as a form of credibility to get new work, showcase sets one apart especially with online portfolios. Other ways mentioned of how they upskill include networking with those who are more experienced.

In this industry, you can never become best at something. There is a learning process until you die! Things change as the product changes. You are only excellent as your last job… creatives, every single day you learn. But how do I remain relevant? I research, spend time online, and develop skills daily.

Jess, 28, Photographer

Exploring behavioural design will create a meaningful behavioural change and create an impact.

With the guidance of a behavioural scientist, we explored ways to generate behavioural changes and habit building in users based on the research findings. Gig worker’s needs differ: while some needs are common, more behavioural studies need to be done to figure out the best way to deliver meaningful products that will have a positive impact on the business. We are aware of the difficulty of changing behaviours but are eager to drive changes for social good, reaching people at the right time and place, moving beyond a one-size-fits-all to a more personalized offering, and partnering with the gig workers for growth.

We explored different ways to engage and nudge behaviours while being aware of the ethics of the right and wrong ways that products can influence the target audience. As we seek to change behaviour, it’s worth considering the real-life implications this has. Our goal is to create solutions that understand and empower the end-user, ensuring that the user is not just a passive consumer of a product but that the product is improving their life.

What next:

As we embark on developing an aggregator platform that connects gig workers to service providers who offer assets needed for their business, our focus will be on building around these focus areas, derisking, community, and offering access. We also want to ensure the model has a social impact and is a sustainable business. We offer these starting points for anyone who is creating or exploring solutions in the gig sector.

• Engage in derisking the engagement for both gig workers and service providers through educating, presenting value clearly to both users and the partners, and overall being an ethical and trusted partner.
• Focus on enabling inclusive and fair access for gig workers to assets, opportunities to build wealth and grow their businesses through financing, relying on the community for a collective bargain approach, and leveraging the social trust that communities create.
• Explore innovative approaches to building solutions around shared assets or cooperative economies (community is key), cocreating with these communities, and creating a bridge between community asset providers to other formal asset providers.