Over 55% of wage and salary recipients in the US are paid at hourly rates, which has led to the rise of startups developing technology to revolutionize the hourly and gig-based job market. These companies have secured billions in venture and growth funding globally in recent years. This article explores the impact of technology on the hourly work industry, highlighting the role of startups in making hourly work more appealing for workers and businesses alike.
The prevalence of hourly work in the US
According to the Bureau of Labor Statistics, more than 76 million American workers are paid at hourly rates. This represents over half of the workforce and has encouraged startups to develop platforms that simplify the process of finding hourly work. These companies are addressing the needs of gig workers and hourly employees who prioritize flexibility, control, and autonomy in their careers.
The rise of startups addressing the hourly and gig-based job market
Startups have recognized and seized the opportunity to create platforms that connect hourly employees with employers who are in need of their services. These technologies streamline the hiring and onboarding processes while lowering costs for both businesses and workers. Startups also offer tools that enable employers to schedule, manage, and pay their hourly workers efficiently. The advancements of these companies reduce the pain points in the hourly work industry and provide workers with newfound control over their work lives.
The significant venture and growth funding raised by these companies globally
Startups’ innovative technology has drawn significant venture and growth funding. A recent analysis of Crunchbase data revealed that companies focused on hourly and gig-based work have raised over $2.7 billion to date, underlining the significance and demand for this technology.
Case study: Instawork’s Series D funding
Instawork is a platform connecting businesses with skilled hourly workers. Earlier this year, the company raised $60 million in a Series D funding round led by TCV. With this funding, Instawork plans to expand its services and create a new suite of products to serve the needs of businesses across a broad range of industries. The success of startups like Instawork demonstrates the potential of technology to transform the hourly work industry.
The effects of labor shortages on hourly wages, and how startups’ tools may help attract more workers
Recent labor shortages have caused a significant increase in hourly wages for workers. Employers are struggling to find and retain hourly workers, and technological advances are offering solutions. Startups have developed tools to attract and retain workers by providing flexibility and efficiency in the hiring and onboarding processes.
Balancing the Appeal of Hourly Work with Startups’ Apps and Tools
Startups recognize that their platforms are not the sole solution to retaining hourly workers. Instead, they aim to balance the appeal of hourly work with their tools. Startups are working alongside employers to increase hourly wages and enhance benefits for workers. Their technological applications offer a seamless process from onboarding to scheduling, which can make employment more attractive for workers.
The primary considerations for workers when searching for hourly work are
While shiny new apps may be a secondary consideration in the hiring process, hourly workers primarily consider factors such as pay, available hours, and scheduling flexibility. Startups can use these insights to shape their platforms to better match the needs of hourly workers.
Startups have transformed the hourly work industry by developing sophisticated platforms that enhance the hiring and onboarding processes for both employers and workers. These technologies address labor shortages, save time and effort for workers and businesses, and provide newfound flexibility and autonomy. As the hourly work market continues to expand, startups will continue to lead the way in enhancing the industry with innovative technologies.