How Much Should You Pay Gig Workers?
If you’re new to the gig economy in Denver or Bozeman, you might be wondering what the going rate is for gig workers. The short answer is that compensation varies by classification, industry, and employer.
For instance, the top three industries that employ gig workers are recreation, construction and business services. Gig workers employed in these industries can typically boast a higher rate than traditional employees doing similar work.
The same can’t be said for the education and information technology services, where traditional workers out-earn gig workers doing the same job. That’s because in a thriving economy, companies tend to keep in-demand workers on staff, especially in high-tech areas.
The long answer? Consider paying a living wage rather than a minimum wage in both Denver and Bozeman. Although, a legal minimum wage was designed to be a living wage; it falls short by a lot. Stay in line with others in your industry and consider paying a higher wage to your most reliable, high-performing gigsters who commit to picking up multiple shifts. When you reward your best gig workers, they reward you with stellar service.
When paid adequately, employees and gig workers can sustain their families better, experience increased worker morale and health, and provide improved quality of service.
But employers also reap significant benefits when paying a living wage over minimum wage. When employers pay adequate wages, they are compensated with lower turnover, higher productivity and more loyal gigsters, to name a few. Higher-paying employers also attract more motivated and capable workers with fewer absenteeism and disciplinary actions.
Benchmark your current wages against the living wage. If you are a Bozeman business owner and want to ensure workers have enough money to live above the federal poverty level, this Missoula County, Montana living wage calculator can assist you. It lists minimum, living and poverty levels by industry and the number of dependents (if any). Although it reports by annual salary, simply divide the annual rate by the number of hours to get a per-hour-amount.
For Denver business owners who are wondering how much to pay a gig worker, the hourly minimum wage in Colorado (effective January 1, 2020) is $12.00. A living wage for one adult with no children in Denver County is $13.87. When determining your gig rate, you might want to consider a living wage calculator which lists average rent and home prices, as well as other cost of living factors for your gig workers. After all, you want to ensure your gigsters earn enough money to live above the federal poverty level and maintain a decent standard of living. Otherwise, gig workers will turn to higher paying companies in your industry.
You don’t have to do this alone! Consult with your GigWorx representative to find the sweet spot when it comes to paying gig workers. We’re here to help. Contact us to find out more about how your company can benefit from our pool of pre-screened talent.