ChangesintheLabourMarketsandNewWaysofWork

WhatPivotalRoleforFreelancers?

MarcoTorregrossaSecretaryGeneral@EuropeanForumofIndependentProfessionals

FinnishFlexiwork Forum– Järvenpää, 23March2017

TheNewYorkCity’ssubwaysystemhas reported inApril2015that,forthefirsttimein30years:

… thisisbecausepeopleareditching theconventionalcommutetoa9-to-5job, sotheycanliveandworkdifferently.

TheRushHourisDisappearing!

“weekdaygrowthwasstrongestoutsideofthetraditionalmorningandeveningrushhours”.

JobsforLifeBecomeJobsforaMinute

Type

Contract

Length

Place

Protection

Employee

Open-ended

Decades

In-house

Linkedtopremises

Subcontractor

Temporary

Years

Out-house

Linkedtostatus

Freelancer

Self-employed

Months/Days

Home/Cowor-kingspace

Linkedtoindividual

Ondemand

Services

Hours/Minutes

Platforms

Tobeinvented

AdaptedfromThomasMalone– Thespectrumofjobs

Eurostat,2015

HowtoSpotaFreelancer

üAhighdegreeofautonomyTheyexercisecontrolovertheirworkloadandportfolio,givingthemagreaterdegreeofflexibilitythanemployees.

üPaymentbytask,assignment,orsalesTheyarepaidfortheiroutput– thecompletionofaproject,ratherthantheirinput– numberofhoursworked.

üShort-termrelationshipwithclientsTheyperformshort-termassignments.Theycanbegintoworkimmediatelywithoutinfrastructures,funding,abusinessplanandoftenlearnbusinessskillsastheygo.

üMeasuringgrowthinunconventionalwaysTheywanttokeeptheirbusinessatamanageablesize,balancingincomegenerationwithcreativity,freedom,self-relianceandwell-being.

1.Full-TimeFreelancers[40%ofallfreelancers]Traditionalfreelancerswhoderivetheirprimaryincome fromindependent workanddonothaveanemployernoremployeesbutinsteaddo freelanceworkonaproject-to-projectbasis.E.g.Aself-employedchiropractor inaprivatepractice.

FreelancersSegmentation

2.Part-TimeFreelancers(Moonlighters)[45%ofallfreelancers]Individualswithmultiple sourcesofincomefromamixoftraditionalemployer andfreelancework.E.g.Aself-employedprofessorwhoalsogivesonlinepaidspeechesandwrites/sellsane-book.

3.TemporaryFreelancers[10%ofallfreelancers]Individualswithasingleemployer, client,job,orcontractprojectwheretheiremploymentstatusistemporary.E.g.Aself-employedbusinessconsultantworkingforoneclientonacontractbasisforamonth-longproject.

4.FreelanceBusinessOwners[5%ofallfreelancers]Freelancerswhoprovide theirservicesthrough alimitedcompanyratherthanasasolotrader.E.g.Aself-employedsocialmarketingguruwithherownone-personcompany.

Finland

Own-AccountWorkers:232.100IndependentProfessionals(Freelancers):110.900Q32016,Eurostat

Consultants PR/Marketing prof. ITprof. Journalists

Real estateprof. Painters Translators/Interpreters Magicians

Footballplayers Top models HR/Headhunters Writers/Editors

Interior designers Meteorologists Virtualassistants Therapists

Socialworkers Detectives Fitnesstrainers Photographers

Socialmedia prof. Exoticdancers Actors/FilmMakers Gamedevelopers

Bloggers Musicians/Singers Tourguides Medium/Fortune Tellers

Buskers Yogainstructors LandscapeGardeners Personalcoaches

Senior carers/Nannies Chiropractors Webdevelopers/Coders Bitcoinminers

SomeExamplesofFreelancers

IssuesAffectingFreelancers

Adminburdens

Accesstofinance

Digitalinfrastruc-

tures

Crossbord-er work

Socialsecurity

Missclass-ificationLate

payments

UpskillingProcurement

rules

Microbizsupport

Prof.qualificationsrecognition

Tax&VATWork-lifebalance

Propercounting

Gigeconomy

Recognition&definition

StructuralShiftsShapingtheDigitalWorldofWork

Combinedforces• Globalisation• Fasterlifestyles• Technologicalrevolution• Demographicchanges• Increasedmobility• Developmentoftheservicesector• Newproductionpatterns• Onlineplatforms• Erodingbrandandemployerloyalties• Needforspecialisedadhocskills• Costeffectiveonlineadvertising• Accesstobetterinfrastructures

Workisnowadays…1. Muchmoreaccessible2. Inmuchsmallerpieces3. Fromagreaternumberofproviders4. Unbundledfromajob

NickGrossman,TheUnbundlingoftheJob

• Definefreelancersasauniquesubsetofmicro-enterprisesforthepurposeoftheSMEsdefinition.

• Obtainbetterdataonthefreelanceworkforcethroughnewandmoreregulargovernmentsurveys,withup-to-datecategoriesandcriteria.

• Modernizethesafetynetwithaportablesystemofbenefitstiedtoworkers,nottoasingleemployer.

• Producesimplifiedpolicythatconsidersfreelancers,withimpactassessments adaptedtoself-employment.

• Createtherightincentivesandensurefreelancerscanaccesswork,publicprocurement,credit,socialsecurity,training,infrastructuresandtaxbenefitsatthesameconditionsofemployees.

Takeaways:PolicyMakers

• Developflexiblepensionproducts whichfreelancerscanaccess,withoutpenalty,whenfacedwithincomevolatility.

• Developaffordableincomeprotectioninsuranceoptions forfreelancers.

• Createasavingschemeforfreelanceswheretheycanchannelapercentageofeveryinvoice.

• Buildmoresharedofficesthatcanbebookedinincrementsandcoworkingspaces.

• Developnon-employeestrainingprogramstoenablefreelancerstoadvancetheircareers.

Takeaways:Intermediaries

• Understandlifetimeemploymentislargelyarelicofthepast.

• Operatelikeaself-containedsmallbusiness.

• Mapoutyourowncareertrajectories,lookingforyourownadvancement.

• Developdifferentiatedskillstoavoidbecomingpartofalow-wagegeneralistpool.

• Learnself-managementskillsandforesighttoprepareforhighsandlowsinearnings.

Takeaways:Workers

• Don’tthinkintermsofemployeesandinputsbutintermsofspecialismsandoutputs.

• Startinsideofcompaniesbyprovidingopportunitiesforemployeestochooseassignmentsindifferentareas.

• Createanexternal talentpooland appointanofficerofextendedworkforcemanagement.

• Deviceanalyticstomeasureperformanceandintegratefreelancersintothecompanyculture.

• Peoplespecializing indoingwhattheydobestraisestheirengagementandmakescompaniesmoreproductive.

• Considerthetrade-offs,itcanbeunwisetomanagesomeone’sworkexternallyandriskiertoentrustsomeonewithconfidentialprojects.

• Ensurethatindependentworkersaretreatedfairlyandethically.

Takeaways:Companies

AdaptedfromPeck,TheFlexibleFirm(1996)

“Therearelawsforpeopleandlawsforbusinesses,butweareanewcategory,athirdcategory…peopleasbusinesses.”

- BrianChesky, CEOAirbnb

“Myfatherhadonejobinhislife,I'vehadsixinmine,mykidswillhavesixatthesametime.”

- RobinChase, CEOZipcar

MarcoTorregrossaabout.me/marcotorregrossa

SecretaryGeneralEuropeanForumofIndependentProfessionals

@MarcoTorreg |@EfipUpdate |#FutureOfWork

• UnderstandingIndependentProfessionalsintheEU,Lorence NyeandKayte Jenkins,June2016.

• FreelancinginAmerica,FreelancersUnionandUpwork report,2015.• Howdothestaffingneedsofcompaniesevolve?,DenisPennel

Ciett ManagingDirectorpresentationatILOITC,2ndNovember2015.• TheFutureofWork:SkillsandResilienceforaWorldofChange,EuropeanPolitical

StrategyCentre,10June2016.• FutureofWorkWhitePaper,WorldEmploymentConfederation,September2016.• Independentwork:Choice,necessity,andthegigeconomy,McKinseyGlobalReport,

October2016.• PlatformLabourorCrowdsourcing,Prof. UrsulaHuws,2015.• TheStateofContingentWorkforceManagement:The2014-2015Guidebookfor

ManagingNon-Traditional Talent,ArdentPartners,2015.• TheRoleofFreelancersinthe21st CenturyBritishEconomy,Prof. AndrewBurke,2012.• Illustrations,IgorKalashnikov for BrightSide.me• JeremiahOwyang,KeynoteonSlideshare:TheCollaborativeEconomy

Sources