The Continued Growth of the Independent Worker

Among the workforce phenomena already underway prior to the recession, but which has picked up pace since, is the increasing role of independent workers. These soloists are typically defined as part- or full-time workers who do not violate the employee-defining guidelines set by various state labor, revenue, and employment security departments. 

They are called by a variety of names, such as independent contractors, consultants, freelancers, self-employed, temporary, on-call workers, and even solopreneurs. Whatever you call them, their ranks are growing. 

In September, MBO Partners, a service provider for independent workers and companies that hire them, released their second annual “State of Independence in America” survey. What they found was that the trend toward project or portfolio work was increasing across all demographic cohorts of today’s workforce. Conditions appear to be coalescing that allow for growth in this non-traditional employment sector. 

My own speculation is that the combination of more workers accepting, perhaps begrudgingly, the new normal of an uncertain economic environment both domestically and globally, in combination with affordable technology improvements, is allowing for expansion of independent contracting. 

Time will tell if independent contracting is a sustainable, non-cyclical, and viable career option. However, this survey reveals some interesting points of transition within a population historically used to finding economic security by way of a single employer. Nearly 17 million workers operate as independents currently, up one million from last year. Projections are that 23 million will be their own boss in five years. 

The number of independents who claim satisfaction and reduced anxiety with this career choice is also growing. Many in fact intend to hire employees as resources allow, suggesting that independent contracting may be a gateway to larger entrepreneurial ventures. 

The GenXers, those aged 33 to 49, seem to embrace this concept the most out of the demographic groups measured. Given their relative vitality coupled with some years of actual work experience they are more open to taking control of their career and lifestyle destinies, certainly more so than their employer-loyal parents. 

Perhaps somewhat counter intuitively, the Gen Y (aged 21–32) workers appear to have a more mixed view of independent working, at least for now. The difficulty they have been facing in recent years entering the workforce and gaining valuable work experience may be skewing their attitude. After all, independence may not be a choice for them, but simply their school-of-hard-knocks reality. 

Many Boomers (aged 50–66) on the other hand have their own reasons for resisting migration to this level of work autonomy. In short, they were not brought up this way. Rather, dedication to an employer who in turn provided economic security has been their norm. But increasingly this generation too is seeing the benefits of more self-reliance and determination as evidenced in the survey. Increased flexibility, less workplace politics, more control over scheduling, and greater opportunities to practice their individual skillsets on their terms is being seen as attractive. 

I see significant advantages for our collective careers in encouraging individual economic independence. Although it may never, and perhaps should not ever, entirely replace the traditional employer-employee relationship there is nevertheless value in workers adopting a more flexible and adaptable economic position within the general workforce. 

Maybe we could start preparing our youth by insisting that our schools replace some of their course load, which is of marginal importance for the mainstream, like algebra and medieval history, with financial literacy and entrepreneurism.  

And Boomers, accept it. You are being ejected from the traditional workforce sooner than you expected. Your choice is becoming the pasture or carving a niche that matters to the marketplace. 

Change is only going to become more exponential, not less. Preparing yourself for independent contracting may be the best way to position your career for it. 

Questioning Holiday Pandemonium

These are tough times for those of us who really dislike shopping. We are not only bombarded by holiday shopping advertising everywhere we turn but are told by economists and those who report what they say that shopping is practically a patriotic duty. Apparently, the economic health of the country is largely dependent on how robust consumer activity is. The more we buy the better it is for the economy. 

Now I understand retail makes up about a third of retailers’ annual revenues between Thanksgiving and Christmas and that $465B is expected to be spent on gifts, food, and decor this year alone. Clearly the 8% of the GDP driven by retail needs consumer spending. But I cannot help but to be bothered by some consequences of an economy so reliant on consumerism. For example: 

Material Overindulgence: Do we really need all the stuff we have? American households are bursting with things, many of them tangential to what is necessary for survival or even a reasonably comfortable lifestyle. We collect, clutter, and hoard more and more items to fill all the space made available by our ever-larger houses. 

Resource Depletion: To build, make, and produce all this stuff we are consuming vast amounts of the planet’s resources. From oil to water to minerals and beyond we voraciously harvest the earth for the by-products needed to leave ourselves saturated with products. 

Global Reputation: It does not take Henry Kissinger to see why the rest of the world resents us. We consume vastly more than most of the world’s other countries. We have an insatiable per capita appetite that leaves an impression we are selfish and bottomless. 

Does this holiday season again have to mean that we feel pressured to spend money that in many cases we do not have? Look how many of us cringe every January when we get that credit card statement. So much for the previous month’s Happy Holidays.  

The buying binge will help retailers, (many of whom are now becoming required to work on Thanksgiving) but it comes at a cost to a society that could be placing its monetary value on more substantive and meaningful purchases. 

Maybe we can temper our consumerism so that the dollars we spend reduce waste and hoarding while at the same time going into the pockets of as many of our fellow citizens as possible. Buying locally produced consumables whenever possible is one important way of strengthening our local economies. Consumables like show tickets, restaurant gift certificates, and locally grown produce put money into our communities while stemming the tide of junk purchased from national big box outlets. 

But more importantly let us give serious thought to mitigating the frenzy now occurring every holiday season. Black Friday near riots and Cyber Monday shopping while “at work”?! What are we doing to ourselves? 

We seem to accept that working ourselves into a holiday shopping mania is the new true meaning of Christmas. Can we just chill? Let’s bring holidays back to a simpler time of recognizing family and friends in a more calm and loving way. Can it be possible to have a season of spiritual warmth without dumping a truckload of detritus on our loved ones? 

Finding a way to spur economic growth that does not rely on binge buying will be significant challenge for a society hooked on ho ho ho=dough dough dough. If I had the answer, I would print it here. All I know is that there is a downside to the type of consumerism characterizing the current state of the holiday season.  

I wish my friends in retail, marketing, and manufacturing happy holidays, but I also hope that the way they approach the last two months of each year will eventually change to something less frenetic.