Perspectives on the Future of Work: October 24
Upwork’s biweekly column brings you the latest news on the future of work, including trends, freelancing, and other shifts in the way we work.
This week’s roundup highlights:
- Freelancers are working longer workweeks than full-time employees—and they’re happy about it.
- The use of freelancers is on the rise, but at a recent HR conference, one attendee felt the contingent workforce was being overlooked.
- The freelance talent pool is growing, but labor protections haven’t caught up
Yahoo Finance | Freelancers Work More Hours than the Average American Does
The number of freelancers grew from 53 million in 2014 to 55 million in 2016, which comprises nearly 35 percent of the U.S. workforce. Not only have their numbers grown, so has their workweek. In the U.S., full-time employees work an average of 34 hours per week, whereas full-time freelancers work an average of 36 hours per week.
Bankrate.com’s senior economic analyst Mark Hamrick said, “It’s generally a good sign that there is sufficient demand to need workers to work a longer week because it shows employers are meeting demand for services.”
According to the Freelancing in America: 2016 study, over half of full-time freelancers believe their workweek is just right. What’s more, 54 percent say they make more than they did in their traditional job. And 86 percent expect more project opportunities in the future.
Spend Matters | HR Tech Post-Mortem: Was the Elephant in the Room?
Although the expanded engagement of freelancers affects HR professionals greatly, very little was mentioned about this large workforce during HR Tech 2016. Business/technology consultant Andrew Karpie attended the recent conference and found most of the over 400 exhibitors focused on traditional employees.
Karpie observed most attendees didn’t give contingent workers a high priority on their list of interests. And most HR professionals were not concerned with learning more about the workers or related technology solutions, such as digital work platforms that reduce the administrative processes involved in sourcing, engaging, and utilizing contingent workers.
With more organizations turning to contingent workers, Karpie says he found this oversight surprising. Numerous studies support the benefits of freelance expertise, such as an IBM study that found independent contractors are so much more engaged than average workers, they nearly matched the level of the companies’ highest performers.
In spite of this, HR Tech 2016 attendees, exhibitors, and speakers seemed to ignore what Karpie refers to as the “elephant in the room.” Perhaps they’ll face the elephant in 2017.
Forbes | McKinsey Study: Gig-Economy Workforce is Bigger than Official Data Shows in U.S., Europe
The independent workforce is growing, but the McKinsey Global Institute says labor policies are still stuck in the Industrial Era. “A lot of our labor market policies have been developed with the idea of a traditional nine to five job in mind. That no longer applies. There is a lot of catch-up we need to do,” said Susan Lund, a partner at McKinsey.
Current labor laws don’t apply to the new and growing freelance workforce who take projects on the side, or freelance full-time. As a result, many independent workers lack access to traditional protections such as unemployment insurance, workers’ compensation, and disability insurance.
This is a growing concern now that 20-30 percent of the U.S. and EU-15 labor forces freelance either part-time or full-time. And this trend is predicted to grow.
According to the McKinsey report, “The Industrial Revolution moved much of the workforce from self-employment to structured payroll jobs. Now the digital revolution may be creating a shift in the opposite direction.” Of the workers surveyed, this shift is driven by a combination of technology, employers, and workers who seek greater control over their income and work schedules.
“What I can imagine in the future is not only that government policy is more realistic about different ways of working but there is a whole ecosystem of players catering to the needs of independent workers,” said Lund. But until that happens, this large workforce remains on its own.
