BT Money Hacks: Fractional jobs: The modern day side hustle?
THE way we perceive work is changing rapidly, and this transformation is prominently noticeable among the younger generation. Many are exploring alternative forms of employment that offer a better work-life balance than the traditional nine-to-five. This shift is paving the way for the gig economy and fractional jobs, presenting both opportunities and challenges.
In the latest episode of Money Hacks by The Business Times, correspondent Howie Lim explores how in recent years, the gig economy has seen exponential growth, leveraging digital platforms to connect freelancers with customers for short-term services or asset sharing.
Adapting to changing aspirations
Speaking with Daphne Tan, head of business development at CMC Markets Singapore and Jenn Ong, managing director, head of retail at GXS Bank for insights on this dynamic way of working, Howie explores fractional jobs - where professionals work part-time or on a project basis, providing companies the flexibility they need while maintaining a work-life balance.
Singapore has been proactive in recognising and adapting to this evolution in the job market. The Republic recently passed a landmark bill that creates a distinct legal category for gig economy workers, offering them better protection. This legislative change signifies a major step towards making freelancing and fractional jobs mainstream - allowing individuals to choose their hours and manage additional income streams effectively.
Fractional jobs aren’t entry level
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Tan from CMC Markets Singapore shares her personal experience of working in a flexible role that often demands long hours. While her position in business development offers the allure of flexibility, it also comes with the reality of extended workdays and the constant challenge of finding time to ‘switch off.’ This is a common scenario among professionals who thrive on flexibility but also have to compensate with significant effort and dedication.
Lim then delves into the concept of fractional jobs further. Unlike freelance or conventional gig work, fractional jobs are typically filled by highly skilled executives such as vice presidents or C-Level professionals. These experts work only when needed and do not receive employment benefits from the companies they serve. Despite the higher fees they can command due to their expertise, there are inherent challenges.
Financial literacy is key
Ong of GXS Bank highlights a critical challenge for fractional workers - the difficulty in accessing financial products. Banks traditionally rely on regular income documentation to underwrite credit products like loans and credit cards. For fractional workers, this lack of fixed monthly income documentation can be a significant hurdle.
Both Tan and Ong emphasise the importance of financial literacy and prudent money management for gig and fractional workers. Moreover, fostering good financial habits will benefit these workers in building a robust credit history over time.
Listen now to find out if this transformation in work preferences signifies a broader change in how we manage and perceive our careers. And if it is for you.
Stay tuned for our next episode, where we delve into the intricacies of the Supplementary Retirement Scheme (SRS) and its benefits. Send your feedback or episode ideas to btpodcasts@sph.com.sg and for more episodes, go to bt.sg/moneyhacks.
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Written and hosted by: Howie Lim (howielim@sph.com.sg)
With Daphne Tan, head of business development at CMC Markets Singapore; and Jenn Ong, managing director, head of retail, GXS Bank
Edited by: Howie Lim & Claressa Monteiro
Produced by: Howie Lim
Engineered by: Chai Pei Chieh
A podcast by BT Podcasts, The Business Times, SPH Media
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