Loyalty to the bottom line
How the gig economy can unlock cost-savings to overcome the fiscal challenges of COVID-19.
The last few weeks have upended businesses across the country. Some are figuring out how to provide delivery or remote services for the first time. Others are cutting costs just to survive. Gig economy companies may seem perfectly suited to excel in a socially distanced, “shelter in place” society, but the unique pressures still offer an opportunity to improve.
Unprecedented shutdowns led to a shift in the profile of people signing up for gig work. Now the “typical” profile of a gig economy worker is much more fluid, factoring in newly displaced workers that have available capacity and an immediate need to make up for lost wages. Historically, gig work was part-time and disproportionately skewed towards millennials and baby boomers (Bureau of Labor Statistics). These workers typically engaged with relatively few gig companies, often one or two, and usually within the same sector, such as “ride-sharing” or “delivery”. In the midst of this pandemic, with millions of people facing reduced incomes, gig platforms are experiencing an influx of new applicants.
This influx of newcomers to the gig economy and their availability has led to evolving worker profiles and patterns that are different from historical indicators. The newcomers are more open to multiple opportunities and are willing to work across industry sectors (e.g. dog walkers that are now also delivery workers). Changes in worker profiles mean that it is more important than ever for companies to understand any potential risk a worker’s history may pose — especially for companies that are providing delivery services for the very first time, or targeting new customer markets like the elderly.
The increased demand for delivery services means that companies are onboarding new workers faster than ever. A quick turnaround time on screenings means that workers can complete onboarding while they are still interested in the job — someone looking for work in the morning can complete their first delivery by that afternoon. People desperately looking for income are likely to prioritize a company that can get them earning first. Unnecessary screening delays could be a deal-breaker for motivated workers and consequently inhibit company growth.
Along with speed, cost is another important factor for companies to consider when it comes to background checks. Criminal screenings are one of the highest onboarding costs for gig platforms. If workers are providing fewer hours to a single platform because they’re spending time on more platforms, the cost of screenings may be harder for the platform to recoup. At the same time, gig economy companies are under increasing pressure to make sure that their employees are safe, which includes providing them with personal protective equipment. One benefit to reduced background screening costs is freeing up capital that can be used to purchase personal protective gear and to offer additional incentives for onboarding and engagement.
Turn’s worker screening and sourcing solutions are positioned to help gig economy companies and 1099 employers emerge stronger from this crisis. For companies who are scrambling to ramp up their existing operations, we are the leading provider of low-cost background checks for the contingent workforce. Our modern tech stack, proprietary identity algorithms, and extensive data partnerships enable us to run basic background checks in 800 milliseconds and nationwide county criminal checks in an average of 24 minutes. Our customizable API’s, enhanced features like check sequencing, and improved compliance flows give 1099 employers unprecedented control over the worker screening experience. For companies who are pivoting to new models, we can quickly get them setup to better understand which potential employees may pose a higher risk. Moreover, our new worker sourcing solution can considerably improve the way employers identify vetted, targeted worker cohorts, so that they can expand into new markets or grow existing markets.
We provide these services at 50%+ discounts compared to industry incumbents, translating to 5–6 figure monthly savings for many employers. The ability to capture these savings could mean the difference between effectively managing the crisis or merely holding on. In times like these, loyalty to the bottom line doesn’t have to mean sacrificing on quality, but rather can highlight fundamental improvements in core processes.
Contact us to learn more: www.turn.ai
