The Great Global Redundancy

Hundreds of thousands of jobs are at risk as a wave of household names – including Upper Crust, Airbus, EasyJet and Harrods – announced redundancy plans in the past 24 hours.
Anthony Beilin
Chief Executive and Co-Founder
Collective Benefits

Numerous others – including TM Lewin, hotel chain Signature Living, and Harveys – have brought in administrators and this follows a wave of redundancies already announced by BA, Virgin and even the FA.

As the economic impact of CV-19 starts to feed its way into the high street and furlough starts to wind down there are an estimated 1m people who may find themselves without a job before the end of the summer - and many more before the end of the calendar year.

So what are all these people going to do?

We know that there has been a huge increase in demand in industries typically powered by the gig-economy - from healthcare to online retail and logistics. At the start of the crisis there was huge emphasis put on the risk faced by self-employed workers, but if anything they are the ones now best placed to survive the financial storm in the long term.

Many of these jobs require little formal training or qualifications and therefore provide the quickest and most flexible way of accessing paid work in a market now flooded with people.

Gig-economy 2.0

In the post CV-19 world, the global economy is going to need the gig-economy more than ever. Not just to continue the phenomenal work undertaken throughout the crises delivering essentials from medicine to food, but also as a mechanism to provide work for the millions of people who won’t be able to find full-time employment. These companies will continue to be vital to ensure families can put food on their tables and pay for heating as the summer sun sets.

Despite popular belief to the contrary - being a fantastic partner for their self-employed workers is actually something that many businesses in the gig economy strive to achieve when looking at how to best prepare themselves for a post CV-19 world. They have an opportunity to reset the rules on how the industry works and how the public perceives them.

Self-employed but not alone

What has become important to workers in the gig economy is not just the ability to work flexibly and save on tax, but now more than ever workers are valuing the security, rewards and support this way of working can now provide.

Like those in the traditional workforce, managing your physical, mental and financial wellness has become increasingly important with record numbers of people now needing support for stress, anxiety or debt management. As huge pools of talent become available and platforms look to build sustainable and long term workforces to grow in the future - creating a framework to better support self-employed workforces has never been more valuable or relevant.

Whether it's sick pay, mental health support, access to financial education or ways to save money, gig platforms are in increasing numbers working with partners like us to redesign the playbook on worker support. Using these tolls to build a stronger and more resilient workforce.

If you're interested in learning more about this or how we can help you in supporting your self-employed workforce, get in touch with us: www.collectivebenefits.com

August 11, 2020