Future of Work: MBO State of Independence Study 2013 Overview

Carolyn Ockels & Steve King, Emergent Research

Gene Zaino, MBO Partners

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Gene ZainoPresident & CEO

MBO Partners

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Expert Speakers – Emergent Research

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Steve KingPartner

Carolyn OckelsPartner

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The Size of the Independent Workforce Increased in 2013

Gen Y 20%

Gen X 36%Boomers

33%

Seniors 11%

Emergent Research

2011 2012 2013

15.9 Million 16.9 Million 17.7 Million

Number of Independent Workers in U.S

Definition of Independent Worker:• 21+ years old • Works 15+ hours a week• Job status is one of the

following:• Self-employed• Fixed-term contract• Independent

consultant/freelancer• Work through temp

agency• On-call arrangement• Own business w/less than

5 employees

2013 Independent Workers by Age

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How Independents Measure Up with Small Business

Small Enterprise

Mid Market

Micro Businesses

Main Street

# of Firms

1.7M

550K

100K

Number of EmployeesIncluding Owner

5-19

20-99

100-500

2-4

US Census data 2010;, 2100; US BLS data 2011, 2012; Emergent Research estimates

3.6M

Independent Workers (those working half-time or more)

17.7M1

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America’s Independents: What is on the horizon?

Only 1 in 7 want to return to a traditional job, down from 1 in 5 in 2011

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The Trends Driving The Growth of the Independent Workforce

• Technology making Independent work cheaper and easier

• Traditional jobs harder to find

• Traditional jobs less attractive

• Demographic and social shifts– Encore careers– Portfolio careers– Growing interest in work/life

flexibility– Shifting family structures

• Independent work perceived as viable; entrepreneurship seen as cool

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Satisfaction trends positive

2013 (n=2024)

2012 (n=730)

2011 (n=601)

3%

3%

4%

33%

27%

39%

64%

71%

58%

Overall Satisfaction as an Independent Worker

Very Dissatisfied (1-3) Neutral (4-7) Very Satisfied (8-10)

Emergent Research

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Choosing Independence ConsistentOver Time

My Cho

ice

Fact

ors Be

yond

Con

trol

Combina

tion

0102030405060

201320122011

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Independents Follow their Passions……and Value Flexibility and Control over their Lives

Do what I love

Like being my own boss

More flexibility

Control my own schedule

Earn more income

Control my career

Unable to find permanent job

Work on projects and tasks I like

23%

13%

10%

10%

8%

4%

3%

3%

25%

12%

13%

11%

8%

3%

6%

3%

18%

11%

14%

10%

9%

2%

4%

3%

Primary Motivations for Becoming an Independent Worker

2011 (n=601)

2012 (n=730)

2013 (n=2024)

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Challenges

Not enough predictable income

Planning for retirement

Worry about next job - project pipeline

Concern about benefits

Marketing myself

Lack of job security

Setting boundaries on work so that it doesn't become a 24/7 commitment

57%

42%

38%

38%

35%

34%

32%

55%

40%

39%

37%

32%

36%

30%

56%

46%

46%

45%

39%

41%

32%

Challenges of Being an Independent Worker

2011 (n=601)2012 (n=730)2013 (n=2024)

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America’s Independents: How are they making an impact?

$1.17 trillion in total Income

Up from ~$1 trillion in 2012

EARNING

SPENDING

HIRING

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Independents Generate Significant Income

25% or Less

26% to 50%

51% to 75%

76% to 100%

0

10

20

30

40

50

Contribution to Household Income

% of Ind.

Workers

2012 2013

$100K+ Earners

2.2M2.5M

The Network Economy: Relationships & Collaboration Bring Business

73%say word of

mouth/referrals/reputation is top method of

finding work

70%Spent 5-20% of their time networking for

business opportunities

3%find work through

online marketplaces

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Independents Generate Work Opportunities for Others

Independents spent $96 billion hiring the equivalent of 2.3 million FT workers via contract hiring

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Self-Descriptors

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Self-descriptors

Self-employed

Contractor

Business owner

Consultant

Creative Professional**

Entrepreneur

Freelancer

Temp

Sales Rep/ Agent/ Broker

58%

34%

29%

15%

15%

13%

12%

8%

6%

60%

19%

24%

19%

14%

16%

20%

8%

Self Descriptors- Select All

2012 (n=730)2013 (n=2024)

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About 40% of Adult Americans have Been Independent*

Neither of these

Worked as an independent worker

Started my own business

68%

21%

18%

Past Employment(Non-Independent Workers:

n=1859)

* 32% of non-independents plus 8% existing independents

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Interest in Becoming an Independent

Definitely will not

Probably will not

Might or might not

Probably will

Definitely will

47%

26%

15%

5%

7%

42%

27%

18%

5%

8%

42%

24%

21%

7%

7%

Likelihood of Becoming an Independent Worker/Business

Owner(Non-Independent Workers)

2011 (n=1042)2012 (n=1004)

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Non-Independents’ View of Independence

• Positives:– Control– Flexibility– Be own boss– Do what I love

• Negatives:– Lack of predictable

income– Lack of security– Lack of affordable

healthcare benefits– Have to invest own

money

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Non-Independents’ View of Independence

10% 32% 57%

Riskiness of Becoming Independent Worker/Starting Own Business

(Non-Independent Workers: n=1859)

Not at all risky (1-3) Neutral (4-7) Very risky (8-10)

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Independence is not for Everyoneand not all are happy

• Based on Surveys, Interviews and Focus Groups we think:

• About 50% of independents are happy being independent

• About 25% are neutral• About 25% are unhappy

• Key Reasons:• Lack of autonomy and

control• Lack of income• Lack of security

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Key Success Factors

• Choosing Independence• Autonomy• Control• Viewing oneself as a business

owner• Spending time “running the

business” and having the skills to do so

• A strong work related network• Marketing and sales skills• Confidence in skills and abilities• Able to deal with lack of

security

Questions and Discussion

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