Liz, a friend of mine, is a single mother, who works hard to pay a mortgage and manage the upbringing and education of two teenage boys. To do this she held three diverse casual jobs; a shop assistant, house cleaner and aged carer. As a qualified pastry chef, she also made cakes for special occasions, in her spare time.
Not working, was not an option for Liz.
Liz is not of an unusual demographic. People working more than one job is not uncommon, nor is casual employment.
In the past two years, the number of people who say they worked two jobs jumped 36{01332a80e2e652688e18927fa9a6162580960d47bc08263a3993439d666dcd52} to 600,000. The number who worked three jobs rocketed 50{01332a80e2e652688e18927fa9a6162580960d47bc08263a3993439d666dcd52} to 52,000 and casual employees make up 22.6{01332a80e2e652688e18927fa9a6162580960d47bc08263a3993439d666dcd52} of the workforce.
Life was manageable, until one day Liz was rushed to the hospital being diagnosed with a significantly sized brain aneurysm. That was the day Liz looked death in the mirror. Thankfully she survived thanks to her own grit and the miracle of modern medicine.
After time in the hospital and several procedures, the doctors explained she had to be off work for two months, not drive and the type of work she could do would be reassessed. Liz moved from the fear of losing her physical life to fear of possible financial peril.
Liz, like so many others in the gig and casualised economy, did not have the benefit of sick leave or secure employment. Some people would suggest it is a bed of their own making, particularly when we choose casual employment.
Research suggests 57{01332a80e2e652688e18927fa9a6162580960d47bc08263a3993439d666dcd52} of people choose casual employment with the primary reason being for work-life balance.
I would suggest work-life balance for many is a family necessity. It is not about the picture of utopian life, sitting on a beach in front of a computer drinking tequilas. For most of us, particularly those in low skilled jobs, there is no choice but to work as a casual employee because this is the only option employers are offering.
A McKinsey study from last year estimated 20 to 30{01332a80e2e652688e18927fa9a6162580960d47bc08263a3993439d666dcd52} of US and European workforces are already engaged in the gig economy; this could go to 50{01332a80e2e652688e18927fa9a6162580960d47bc08263a3993439d666dcd52}.
For my friend, it was about making an income to pay the mortgage, providing for her children and being available for them as much as possible. This was especially important as a single mum bringing up boys. This often came with compromise working long hours or weekends to meet the costs of unexpected bills (like car breakdowns), or wanting to provide something special for her boys at Christmas.
Are you vulnerable?
Liz’s story reflects how many of us find ourselves in a vulnerable position as the gig economy grows. As work becomes less secure, it is more important than ever to have a survival plan in case of the unexpected.
Thankfully, Liz was prepared for an emergency as she understood her vulnerability. Often going without the little things, many of us take for granted she implemented the following to help prepare herself in case of the unexpected.
1 Mortgage.
Every month, when it was possible, Liz paid more off her mortgage. She had made an arrangement with her bank so the extra money could either be used to pay her mortgage in case of an emergency or be paid out a little earlier. Smart move.
2 Financial advice.
Liz sought advice from a financial adviser about income and trauma insurance and took out cover which worked with her circumstances.
3 Centrelink.
When Liz was unable to work, there was a waiting period for income insurance and Liz was not deemed sick enough for trauma insurance, so she investigated short term assistance from Centrelink.
What else could Liz do?
1 Check current legal entitlements. Staff who work in casual employment have recently won the right to request permanent employment if they work regular hours over a year. Employers can refuse the request on reasonable grounds. Permanent employees have entitlements casuals don’t, like sick leave.
2 Keep informed about potential changes in gig economy. Countries such as the United Kingdom are investigating legislative changes to protect workers from potential exploitation in the gig economy.
3 Understand superannuation entitlements.
4 Clarify need for worker’s compensation insurance.
Liz had a survival kit and was prepared – critical for those working in the gig economy.
As practical as all this is, every bit as important was the role Liz’s community played in helping her and her family during a horrendous time. And it was horrendous, Liz suffered a mini-stroke after a procedure, waking up in intensive care unable to speak for 24 hours. Can you imagine if you were Liz?
Liz’s family although there in spirit were not immediately available to help with practical things required due to illness and distance. This is not uncommon in our modern world. Liz’s community, however, provided meals, financial assistance, transport, lawn mowing, covered her shifts, and even gave her the contents of the tip jar and free meals at the local pub.
The lesson from this story is – any one of us could be Liz, any moment of any day. Hers is both a hopeful and a cautionary tale.
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Hopeful – you can take actions to prepare a survival kit in the gig economy |
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Cautionary – is your own survival kit ready yet? |
