The Evolution of Work and How to Thrive in the Contractor Economy

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1The changing

nature of work 2The challenges

and opportunities

3How LinkedIn is

evolving

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Rapid changes in the definition of “career”

Workers living longer and retiring later

All-inclusive global talent market where purpose at work matters

Exponential technology change leading to a

need for new skills

A truly connected world that is breaking down

work boundaries

Driving forces

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The multi-gen workforce

People used to join companies for life, but younger generations

have changed this.

The average baby boomer will be looking for a job 11.7 times in his or her career

11.7x

Millennials change jobs every two years or less

2 Years

TODAY

SHIFT 1

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37%37% of LinkedIn

members are purpose-oriented

50% are more likely to be in

leadership roles

47% are more likely to be promoters of

their employers

50% 47%

Of those members…

64%64% are higher

performers

People are more thoughtful about workSHIFT 2

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Today, the average member of the global workforce needs to update their skills every 5 years. The World Economic Forum

estimates that 65% of children entering primary schools today will likely work in roles that don’t currently exist.

5years

Technology continues to disrupt and change the jobs of tomorrow

SHIFT 3

65%

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People can now work from anywhere, learn on demand, and be exposed to new opportunities at every turn.

The World Economic Forum surveyed global HR decision-makers and 44% said new technologies enable remote working, co-working space, and teleconferencing as the principal driver of change.

Technology is connecting the workplace, changing the way we work

SHIFT 4

44%

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With these changes come new challenges

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Organizational structure must adapt

Flatten the hierarchy

Make jobs more dynamic

Leverage contingent and contract labor

92%

of CHROs and CEOs say their structure

must change

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With human-automation collaboration, certain job functions will fluctuate

Declines in 6M roles in the next 4 years within:Office/admin functionsManufacturing and production roles

Steep increases in: Business and financial opsComputer and mathematical functions

The nature of work is shifting

Workers are demanding more flexibility around when, where, and how they work

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The volume of placements will increase

2003 04 05 06 07

of U.S. executives expect to use more contingent workers in the next 3–5 years

08 09 2010 11 12 13 14 15

10%

9

8

7

6

5

Outsourced temp workers as a % of direct-hire employees

42%

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The workforce is becoming more fluid

Companies are re-thinking how they structure

their workforce

Boundaries between full-time and contract work

are collapsing

“Contract worker” is getting harder to define. Close to 37% of people prefer alternatives

to a traditional job

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And the talent pool is adapting & evolving

232 million adults in the United States and the EU-15 are inactive, unemployed, or work less than full time

100 million would like to start working or increase their hours100M

232M

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IN AN EVOLVING WORKFORCEFind the right talent

at the right time

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LinkedIn’s pool of talent

World’s largest professional network

Two professionals join LinkedIn every second

Students and recent college graduates

467M 40M

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We launched Open Candidatesso you can focus on talent that is open to hearing from you

Filter candidates who are ready to make a move.

Boost response rates.

Close requisitions faster.

ON

increase in response rate

2X

3.5Mmembers participating

Open Candidates

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See who is open, to what kinds of opportunities,

and when.

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Who is open to contractor work, and

how do we find them?

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With Contractor Sourcing, you can quickly identify candidates open to contract work

4.5M+ 2x 39%

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Search for candidates who may be open to contract work and more,

with the ”Employment Type” filter

Identify candidates likely to be interested in specific types of employment, including contract roles

We identify contractors in 2 ways:

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Self-reported through Open Candidates

Predictive algorithm based on LinkedIn profile data

To limit your view to self-reported contractors, use the “Employment Type” filter and the “Open to new opportunities

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Contractors on LinkedIn

Manager level or above

IT

Top 3 functions of current position

1

2

3

Operations

Engineering

36% 50%

VP level or above

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Contractor market migration

who changed companies in the past 12 months

moved to a different industry

68%IT & Services

Top 3 industries of current position:

1

2

3

Higher education

Hospital & health care

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Where are these contractors right now?

High supply and lower demand

Dem

and

Inde

x

Supply (# professionals)

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Where are they going?

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This pool of talent is actively looking around, not just open to new opportunities

have viewed a job on LinkedIn

in the past year

more likely to respond to a

recruiter InMail

2.3X94%

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K E Y T A K E A W A Y S

1 The world is changing, which presents new talent challenges

2 With the rise of the contract workforce, the unique issue of finding them is becoming a bigger pain point

3 We are working towards building new solutions and understanding this talent pool better

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“Digital platforms are transforming independent work,

building on the ubiquity of mobile devices, the enormous pools of

workers and customers they can reach, and the ability to harness

rich real-time information to make more efficient matches.”

— M C K I N S E Y G L O B A L I N S T I T U T E

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