Teresa Carroll's presentation at TLIA London on 26th June 2018 on the New World of the Worker

1. GROWTH IN THE GIG ECONOMYTERESA CARROL | 26 JUNE 2018 GROWTH IN THE GIG ECONOMYTERESA CARROL | 26 JUNE 2018
Teresa Carroll
J U N E 2 6 t h 2 0 1 8
Growth In The Gig Economy
Te r e s a C a r r o l l | Ta l e n t L e a d e r s h i p i n A c t i o n
What’s driving the way that people want to work?

2. GROWTH IN THE GIG ECONOMYTERESA CARROL | 26 JUNE 2018 GROWTH IN THE GIG ECONOMYTERESA CARROL | 26 JUNE 2018
500 400 300 200 100 0
2015 shaded pyramid
2005 outline pyramid
Population (thousands)
0 100 200 300 400 500
89
85
80
75
70
65
60
55
50
45
40
35
30
25
20
15
10
5
0
age
Working Age Population – UK
2G R O W T H I N T H E G I G E C O N O M YT E R E S A C A R R O L L | 2 6 J U N E 2 0 1 8 2
males females
Source: The Office for National Statistics UK (ONS)

3. GROWTH IN THE GIG ECONOMYTERESA CARROL | 26 JUNE 2018
Employment Trends
 The number of people aged 65 and over in
work has topped 1m for the first time,
highlighting a trend that couples personal
choice, for some, with financial necessity for
many. It also fulfils a crucial economic need
for the UK.
 10 million people over 65, with this number
expected to nearly double to around 19
million by 2050.
 UK workforce has over 9m people over 50
years old
 There will be 13.5m vacancies in the next 10
years, but only 7m young people will leave
school and college.
 Electing to work longer in fulfilling work has
significant emotional, heath and economic
benefits
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Source: The Financial Times (https://www.ft.com/content/7fc53184-d37a-11e2-95d4-00144feab7de )

4. GROWTH IN THE GIG ECONOMYTERESA CARROL | 26 JUNE 2018
Labour
productivity is
expected to
accelerate in
all regions.
1993 1998 2003 2008 2013 2018 2023 2028
Emerging Markets and
Developing Economies
United States
Mature Economies
Euro Area
Note: The series represent the trend of labour productivity growth and are smoothened using HP filter
Source: The Conference Board Total Economy Database ™ and Global Outlook 2018
4
3
2
1
0
-1
Forecast
2018-2027
Labour Productivity Growth,
Annual percentage change
1990 to 2027
Labourforceproductivitygrowth(%change)
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5. GROWTH IN THE GIG ECONOMYTERESA CARROL | 26 JUNE 2018 GROWTH IN THE GIG ECONOMYTERESA CARROL | 26 JUNE 2018 GROWTH IN THE GIG ECONOMYTERESA CARROL | 26 JUNE 2018 5
Your Buy, Build or Borrow decisions
are now mission critical
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Organisations must become foundationally efficient before they can become effective
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Insights will underpin your
pathway to excellence

7. GROWTH IN THE GIG ECONOMYTERESA CARROL | 26 JUNE 2018
Four Segments of Independent Workers
SUPPLEMENTAL INCOME
FREE AGENTS
Derive their primary income from
independent work and actively choose this
working style
CASUAL EARNERS
Use independent work to supplement their
income and do so by choice. Some have
traditional primary jobs, while others are
student, retirees or caregivers
RELUCTANTS
Derive their primary income from
independent work but would prefer
traditional jobs
FINANCIALLY STRAPPED
Do independent work to supplement their
income but would prefer not to have to do
side jobs to make ends meet
“Independent work is my…”
PRIMARY INCOME
PREFERRED
CHOICE
NECESSARY
CHOICE
G R O W T H I N T H E G I G E C O N O M YT E R E S A C A R R O L L | 2 6 J U N E 2 0 1 8
Source: 2016 McKinsey Global Institute survey of ~8,000 US and Eurpoean respondents
11

8. GROWTH IN THE GIG ECONOMYTERESA CARROL | 26 JUNE 2018
Independent workers generally fit into four segments
FREE AGENTS
30%
49 Million
CASUAL EARNERS
40%
64 Million
RELUCTANTS
14%
23 Million
FINANCIALLY
STRAPPED
16%
26 Million
Share of working-age population engaged in independent work
PRIMARY INCOME
PREFERRED
CHOICE
NECESSARY
CHOICE
SUPPLEMENTAL INCOME
Source: 2016 McKinsey Global Institute survey of ~8,000 US and Eurpoean respondents
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9. GROWTH IN THE GIG ECONOMYTERESA CARROL | 26 JUNE 2018
Source: McKinsey Global Institute: Independent work: Choice, necessity, and the gig economy. (October 2016)
Adoption Rate of Gig
Labour in EU
83%
73%
71%
60%
FRANCE
GERMANY
UK
SWITZERLAND
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10. GROWTH IN THE GIG ECONOMYTERESA CARROL | 26 JUNE 2018
Source: The Evolution of the On Demand Economy, People Per Hour
Cumulative Changes in Self-Employment &
Employment from 1980 to 2015
Cumulative Change in Self
Employed Since 1980
Cumulative Change in Total
Workforce Since 1980
Cumulative Change in
Non-Self Employed Since 1980
UK Labour Force: ONS, 2015
Significant growth across self-employment of approximately 3.5% for advanced economies
1980 1985 1990 1995 2000 2005 2010 2015
80%
60%
40%
20%
0%
120%
100%
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11. GROWTH IN THE GIG ECONOMYTERESA CARROL | 26 JUNE 2018
“I think [HR] people focus too much on employment status.
We have to stop thinking about all that rubbish–who gets invited to
meetings, who gets included in the employee survey, who gets
invited to the Christmas party–and start thinking about how we
engage with the broader workforce, a more flexible workforce. How
do we manage these people if they’re just coming in; how do we
induct them; who needs to know our policies and procedures? All
that practical stuff requires real thought.”
 Gemma Dale, former UK HRD at Tunstall Healthcare, as told to HR Magazine. LINK
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“