Financial Pressures Push Workers to Seek Second Jobs
New research conducted by Boostworks highlights that 57% of Gen Z and 71% of Millennials are exploring second jobs / side hustles to cover basic expenses, given the ongoing cost of living crisis.
New Research
The new survey on second jobs reinforces the findings of another recent report compiled by the Work Foundation at Lancaster University, using data from the Office for National Statistics (ONS). The Lancaster University report found that the increase in those with second jobs / side hustles was across all age groups, had reached 1.35 million people, and was at its highest level since records began in 1992.
Key Findings
The new report on second jobs / side hustles from Boostworks found that:-
- A significant proportion of younger workers, 57% of Gen Z and 71% of Millennials, are either considering or already pursuing second jobs / side hustles, driven by rising living costs and financial insecurity.
- Financial pressure is the leading motivator for seeking side hustles across all generations, with Millennials (71%) and Gen X (69%) particularly affected, indicating a widespread concern about meeting basic expenses.
- Currently, 19% of Gen Z and 11% of Millennials are already hold second jobs, highlighting how prevalent multiple employment has become among younger demographics in response to economic challenges.
- Nearly half of Millennials (49%) and 44% of Gen Z report that financial stress is directly impacting their focus and productivity at work, suggesting broader implications for workplace performance and mental health.
- The research indicates that the cost-of-living crisis is fundamentally changing how young employees engage with their primary jobs, often forcing compromises in wellbeing and job satisfaction.
- Personalised employee benefits are increasingly important. 74% of Gen Z expressed a need for financial education tools, while Millennials and Gen X value shopping discounts and cashback schemes to help manage daily costs.
- Baby Boomers continue to prioritise traditional benefits like performance-based bonuses (40%)
Navigating The Financial Challenges
The financial pressures stemming from the cost-of-living crisis have produced a significant shift in how Gen Z and Millennials approach employment. With a substantial portion of these younger demographics either considering or already engaging in second jobs or side hustles, it is evident that economic instability is driving this trend. The pervasive financial stress not only influences their work performance and mental health but also underscores the need for personalised employee benefits that cater to their specific financial challenges.
Adaptability Required
Employers should recognise these evolving needs and adapt their support strategies accordingly. Providing financial education tools, shopping discounts, and cashback schemes can play a crucial role in alleviating some of the economic burdens faced by younger employees.
By addressing these concerns proactively, employers can help mitigate the adverse effects on productivity and well-being, fostering a more resilient and satisfied workforce amidst ongoing economic uncertainties.
The Health Benefits of Switching to a Four-Day Week
As we highlighted in a recent article, one of the key findings from the second UK four day working week pilot was the positive health benefits, with 62% of workers who participated reporting reduced burnout. Now new research published in Nature Human Behaviour has backed up that finding.
New Survey
As part of that new survey, researchers from the US and Ireland conducted an extensive study involving 141 employers across six countries, including the US, UK, and Australia, with nearly 2,900 employees participating in a six-month trial. They found that maintaining productivity whilst working fewer hours improved employees' overall wellbeing. Participants reported better sleep, less fatigue, higher job satisfaction, and reduced burnout. The study also highlighted that restructuring workflows to maintain productivity during reduced hours was crucial for these positive outcomes.
Most Companies To Contunue With Four-Day Week Arrangement
Nine out of ten companies involved in the study chose to continue with the four-day work week after the trial ended.
Benefits For Both Employers & Employees
Despite some limitations regarding the sample's randomness and size, the research suggests that a four-day work week can lead to substantial benefits for both employees and employers. Reduced working hours not only promote better health, but also reduce employee turnover rates.
Implementation Challenges
Nevertheless, researchers noted that this model might be challenging to implement in certain industries like manufacturing.
