Future of Work: MBO State of Independence Study 2013
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The document summarizes key findings from the 2013 MBO State of Independence Study conducted by Emergent Research. It finds that the number of independent workers in the U.S. grew to 17.7 million in 2013. Independent workers generate over $1 trillion in total income and hire the equivalent of 2.3 million full-time workers. While over half of independents are satisfied, about a quarter are neutral or unhappy due to a lack of autonomy, income security, and benefits. The study also examines motivations, challenges, and characteristics of independent workers.
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Future of Work: MBO State of Independence Study 2013
- 1. Future of Work: MBO State of Independence Study 2013 Overview Carolyn Ockels & Steve King, Emergent Research Gene Zaino, MBO Partners
- 2. Moderator Gene Zaino President & CEO MBO Partners
- 3. We Make it Easy for Self-employed Professionals & Their Clients to Work Together
- 4. Webinar Controls The full screen icon maximizes the presentation area. The chat box allows you to send a question to the presenter.
- 5. Live Tweeting Today’s Hashtag: #MBOWeb Submit your Questions/Comments
- 6. 6 Expert Speakers – Emergent Research 6 Steve King Partner Carolyn Ockels Partner
- 7. The Size of the Independent Workforce Increased in 2013 7 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
- 8. 8 How Independents Measure Up with Small Business Small Enterprise Mid Market Micro Businesses Main Street # of Firms 1.7M 550K 100K Number of Employees Including 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) 17.7M 1
- 9. America’s Independents: What is on the horizon? 9 Only 1 in 7 want to return to a traditional job, down from 1 in 5 in 2011
- 10. The Trends Driving The Growth of the Independent Workforce 10 • 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
- 11. Satisfaction trends positive 11 3% 3% 4% 33% 27% 39% 64% 71% 58% 2013 (n=2024) 2012 (n=730) 2011 (n=601) Overall Satisfaction as an Independent Worker Very Dissatisfied (1-3) Neutral (4-7) Very Satisfied (8-10) Emergent Research
- 12. Choosing Independence Consistent Over Time 12 0 10 20 30 40 50 60 My Choice Factors Beyond Control Combination 2013 2012 2011
- 13. Independents Follow their Passions… …and Value Flexibility and Control over their Lives 13 23% 13% 10% 10% 8% 4% 3% 3% 25% 12% 13% 11% 8% 3% 6% 3% 18% 11% 14% 10% 9% 2% 4% 3% 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 Primary Motivations for Becoming an Independent Worker 2013 (n=2024) 2012 (n=730) 2011 (n=601)
- 14. Challenges 14 57% 42% 38% 38% 35% 34% 32% 55% 40% 39% 37% 32% 36% 30% 56% 46% 46% 45% 39% 41% 32% 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 Challenges of Being an Independent Worker 2013 (n=2024) 2012 (n=730) 2011 (n=601)
- 15. America’s Independents: How are they making an impact? 15 $1.17 trillion in total Income Up from ~$1 trillion in 2012 EARNING SPENDING HIRING
- 16. Independents Generate Significant Income 16 0 5 10 15 20 25 30 35 40 45 25% or Less 26% to 50% 51% to 75% 76% to 100% Contribution to Household Income % of Ind. Workers 2012 2013 $100K+ Earners 2.2M 2.5M
- 17. 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 17
- 18. Independents Generate Work Opportunities for Others 18 Independents spent $96 billion hiring the equivalent of 2.3 million FT workers via contract hiring
- 20. Self-descriptors 20 58% 34% 29% 15% 15% 13% 12% 8% 6% 60% 19% 24% 19% 14% 16% 20% 8% Self-employed Contractor Business owner Consultant Creative Professional** Entrepreneur Freelancer Temp Sales Rep/ Agent/ Broker Self Descriptors- Select All 2013 (n=2024) 2012 (n=730)
- 21. About 40% of Adult Americans have Been Independent* 21 68% 21% 18% Neither of these Worked as an independent worker Started my own business Past Employment (Non-Independent Workers: n=1859) * 32% of non-independents plus 8% existing independents
- 22. Interest in Becoming an Independent 22 47% 26% 15% 5% 7% 42% 27% 18% 5% 8% 42% 24% 21% 7% 7% Definitely will not Probably will not Might or might not Probably will Definitely will Likelihood of Becoming an Independent Worker/Business Owner (Non-Independent Workers) 2013 (n=1868) 2012 (n=1004) 2011 (n=1042)
- 23. Non-Independents’ View of Independence 23 • 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
- 24. Non-Independents’ View of Independence 24 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)
- 25. Independence is not for Everyone and not all are happy 25 • 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
- 26. 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 26
- 28. Additional Information • EMAIL us - info@mbopartners.com • VISIT our website - www.mbopartners.com • FOLLOW us on Twitter - @mbopartners • SIGN UP for our monthly newsletter - newsletter@mbopartners.com 28
Editor's Notes
- In case you aren’t familiar with MBO Partners, at a high level we make it easy for independent consultants and their clients to work together. We do this by running a variety of back office functions for our consultants so they can focus on the work they love. We take care of taxes, invoicing, contracts and business insurances. We also work hard to provide value to independents by creating a wide range of educational content that is featured in our Independent’s Guide portion of our website, as well as in our webinar series!
- Some quick housekeeping before we begin – here you can see the webinar controls – please click the button with a small screen icon to move into full screen mode and don’t hesitate to send questions across throughout the presentation by typing them into the box shown here. We will answer them all at the end of the presentation. I would, however, like to answer the most common question we get now: Yes, we will be emailing you a recording of this webinar. You should see it in your inbox early next week.
- A new feature on our webinar series is live tweeting! Please note today’s hashtag and feel free to send across questions and comments through the presentation. We will be monitoring it and will also answer these questions at the end of the presentation. You can also follow our speaker, Jennifer at the Twitter handles you see here.