A new world of work that needs to be insured differently
It seems that the writing is on the wall for the traditional nine to five job. The world is becoming increasingly agile and flexible as employees juggle multiple jobs and incomes. You might call them hustlers, moonlighters or side jobbers but one thing is certain, there are more of them in the market today than ever before.
If you are one of these side-hustlers, then you are part of a fast-emerging trend that’s set to change the way we earn our money forever.
According to a report by the Henley Business School of South Africa (HBSA), “What is the future of work in South Africa” more than 27% of respondents indicated that they are either involved in a Side Hustle or Side Job. Similarly, a study by Geopoll (2017) focusing on millennials showed that 30% of young South Africans have a side hustle.
When you think about the fact that 20% of the formal workplace holds more than one job, you might also be asking, why would anyone want to work two jobs? The simple answer is that the reliance on the side hustle is quite significant if you consider that in some cases it can make up almost a quarter of your overall income.
Top three reasons for the growing side-hustle economy
1. Money is tight and salaries are low
According to the South African Reserve Bank, workers’ pay increases do not keep up with inflation. In the first quarter of 2019, employees in the private sector on average received an increase of 1% while inflation is at 4.3%. This means that the cost of living is increasing faster than salaries. As financial pressures mount, people look for alternative income streams and manage multiple earnings.
2. Long-term job security is waning
In 2019 alone, we’ve seen large corporate companies cutting back on the number of employees in their business. In June Multichoice announced that it will retrench 2,000 employees. Sibanye-Stillwater’s ongoing financial losses could result in 3,450 jobs. Tongaat Hulett, delivered a bitter blow issuing retrenchment letters to 5,000 of its employees. This is just a small sample of a list that continues to grow.
3. Technology is an enabler
Technology is an important driver behind earning multiple incomes. Anyone with a smart device can pursue a side hustle to earn extra income. The internet and social media effortlessly connect people with similar interests, creating a market place for savvy entrepreneurs to deliver exciting new products and services.
The freelancing revolution is bringing more flexible jobs despite the tough economic circumstances. People are working multiple jobs and earning money pursuing their hobbies and passions. It’s a whole new world of work that needs to be insured in a different way.
So, if you’re a side hustler earning multiple income speak to YOUR FINANCIAL ADVISOR to find out how we can help you secure your most valuable assets – your multiple incomes.
Liberty Group Limited is a Registered Long-Term Insurer and an Authorised Financial Services Provider (FAIS 2409)