1
The Rise of the Blended Workforce
in the New Gig Economy
Future Workplace Network
TM
Research Report
About This Report
Executive Summary
The Rise Of The Blended Workforce
How The ACA Impacts The Workforce
What Freelancers Say About Freelancing
What Employers Say About Freelancers
Powering The Pivot To A Blended Workforce
“Understanding The Gig Economy” Research
Impact Of The ACA On The Workforce
Rise Of The Blended Workforce
New Ways To Source Freelancers
Key Freelance Skills
Picture Of Today’s Freelance Workers
HR’s Experience With Freelancers
The Gig Economy: Here To Stay
About Field Nation
About Future Workplace
Sources
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Table Of Contents
1
About This Report
“Understanding the Gig Economy” Study addresses the “why” behind the increased usage of
freelancers in the workplace and explains how the trend is gaining momentum in response to
the Aordable Care Act (ACA) and other macro factors.
The national survey, conducted by Field Nation and Future Workplace, recaps the ndings of
600 HR decision makers and 959 freelancers, probing the drivers and business benets behind
the rise of the free-agent workforce. The results highlight the emergent challenges created by
this disruption to the classic employer-employee model and identify potential solutions to help
organizations manage a more elastic blended workforce.
The study respondents provide detailed examples of how three macro trends are leading
companies across various industries to hire more freelancers.
These trends are:
These trends are in turn expediting the creation of a more blended workforce of full-time
employees and freelance workers, maximizing business value and individual opportunity.
Finally, the report sheds light on how companies can manage this powerful new blended
workforce by making strategic decisions around how to best integrate freelancers with full-
time employees in their organizations. Critical to this eort is organizational eectiveness at
managing visibility, accountability, and control in relation to the blended workforce.
1
2
3
An increased ease of discoverability of available and skilled freelancers
The decoupling of individual benets like healthcare and wages from
the traditional employer-employee model
The timing of peak ACA-related cost drivers for business
2
Three macro trends are converging that are changing the way work works. These trends are
related to the rise of professional freelancing, the decoupling of benets from traditional
employment, and the peaking impact of the Aordable Care Act on business. At a time when the
ACA is triggering companies to search for cost containment and rethink workforce structures,
individuals are increasingly able to engage in the freelance lifestyle without sacricing expected
pay or benets. The combination of these phenomena means that organizations must learn
how to eectively integrate process and performance management between freelancers and
their traditional workforces.
The joint Field Nation – Future Workplace Network study, Understanding The Gig Economy,
indicates that the ACA is driving companies to prefer engaging with freelance talent over hiring
new talent. 68 percent of organizations prefer freelancers because of the ACA. While the vast
majority of companies (89%) agree that healthcare benets are key to attracting and retaining
talent, nearly one-third intend to eliminate them due to the ACA. This is in part because 2016 is
when the tax penalty for individual uninsured workers is the highest at $695 per employee and
the Employer Mandate / Shared Responsibility penalty calculations peak.
As a result, nearly three-quarters (74%) of companies plan to contract with more freelancers
while 28 percent actually plan to hire a greater number of freelancers than full-time employees
by 2020. The survey of 600 HR decision makers indicates staggering growth in the pace of
freelance engagement. Nearly half (49%) of top performing companies expect to accelerate
their freelance hiring rate by 30 percent or more. The study nds strong optimism among
HR decision makers for overall employment growth with 88 percent indicating increases in
combined full time and freelance hiring.
Freelancers are feeling the eect of the ACA as well, with 60 percent of freelance respondents
reporting that the ACA has inuenced their workload in some way, either by forcing them to
take on additional clients to pay for new mandates, or conversely, allowing them new access to
benets they did not have (or could not aord) previously.
The U.S. employment landscape has been evolving as a result of the ACA since 2010. During
this same time, new freelance-specic sourcing methods have been expediting the blended
workforce trend by making it easier for employers to identify free-agent talent. The study found
that 38 percent of freelancers are now being sourced through freelance management platforms,
narrowing the sourcing gap with general online job boards (43%) and employment agencies
(39%).
Executive Summary
3
In this new blended workforce, freelancers are joining together to meet the ever-increasing
demands of the workplace—nearly all (93%) of companies see freelance workers teaming
up with employees to work on projects together. Based on this research, the top skill that
employers derive from freelancers is teamwork (38%)—yet HR decision-makers still identify
teamwork as one of the top 5 skills freelancers’ lack.
4
McKinsey Global Institute
i
recently reported that by 2025, “online talent platforms could increase
global GDP by $2.7 trillion and improve job outcomes for 540 million people.” With freelancers
accounting for much of the talent fueling these platforms, this represents a fundamental,
paradigmatic shift in the way that work “works” and how it impacts the global economy and
organizations worldwide. The resulting blended workforce represents the de-commodication
of freelance expertise and the strategic engagement of on-demand know-how.
Yet the reality is that the world of freelancing is not new. So what is driving this massive change
in scale and scope of freelancing compared to a decade ago? Earlier research from Future
Workplace and Field Nation identied a number of drivers behind this acceleration, including:
The conuence of these factors—which have been hastened by the impact of the Aordable
Care Act—has led to freelancing becoming strategic rather than an operational element of
business. Freelancers not only bring to the table a blend of knowledge-based and experiential
learning, but they also allow for “elastic” expertise that helps employers nd and utilize the best
talent depending on each project’s needs within an organization. Because of these benets for
employers, freelancing is no longer being pushed down to a lower operational level of business
where organizations lack visibility, accountability, and control over the process. With the rise of
the free agent workforce, organizations both large and small will need to learn how to facilitate
collaboration and teaming to prepare for a blended workforce. Fortunately, teaming is a top skill
that professional freelancers bring to the table, as our research found.
The Rise Of The Blended Workforce
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3
6
Continued corporate appetite for outsourcing
Elevated value of individual expertise
Flexible access to an on-demand and highly skilled global talent pool
Economic recession driving people to look for new ways to work
Emergence of the passion culture driven by Millennials and Generation Z
Evolution of information communication technology (Internet, social, mobile)
5
The Skills That Businesses Say Make Freelancers Effective
Do HR Pros Expect To See An Increase In Freelance + Employee Teaming?
6
The Aordable Care Act has played a signicant role in facilitating the rise of the blended
workforce. The ACA has served as a catalyst for companies to begin dropping their employee
healthcare benets and start making plans to hire more freelancers. What’s more, while 89
percent of companies said healthcare benets are key to attracting and retaining talent, nearly
one-third of companies intend to eliminate them due to the ACA.
How will companies make up for the likely drain of full-time talent when they no longer oer
healthcare benets to their sta? By hiring more freelancers, which will also help reduce
operational costs. 68 percent of companies said that the ACA will have a high impact on hiring
more freelance workers and as a result, 74 percent plan to contract with more freelancers
overall. Drilling into the data, we found that 49 percent of top performing organizations expect
to increase their hiring of freelancers by 30 percent or more. In the short term, 60 percent of
companies plan to engage more freelancers than in 2015. Looking ahead, organizations are
predicting strong overall employee growth with nearly one-third expecting to engage more
freelance workers than full-time employees by the year 2020.
How The ACA Impacts The Workforce
Are Healthcare Benefits Key To Attracting &
Retaining Talent?
Employee Benefits Targeted For Elimination Due
To The ACA
7
From the freelancer point of view, 60 percent of responses indicated the ACA has impacted
their workload in some way. Meanwhile, one-third of independents have a healthcare benets
plan they subscribe to as a freelancer, while 61 percent of freelancers said they don’t currently
subscribe to a freelancer-specic healthcare benets plan.
By 2020 Do You Project Hiring More
Freelancers or FTEs?
How Does The ACA Impact You As A Freelancer?
*answers exceed 100% due to multiple sections
Compared To 2015 Do You Project Hiring
More Freelancers?
Do You Have A Healthcare Benefits
Plan As A Freelancer?
8
But the story doesn’t end there. When asked specically about how the ACA aects them, the
freelancers shared numerous stories that varied widely. Some received healthcare through a
spouse or the military. Some shared how the new tax and mandatory premiums impact their
business; forcing them to either watch their hours so they don’t “make too much” and lose
assistance or how the tax cuts into their prots. Many others, though, indicated that they nally
were able to aord a healthcare coverage plan and keep their business. “It made healthcare
aordable,” replied one respondent. “I now have healthcare at a very minimal cost to myself.
I’ve stood to benet greatly from this new law being enacted,” shared a freelance respondent.
One professional freelancer quantied a specic benet, saying, “It cut my health insurance
cost from $17,000.00+ a year to $8,000.00 a year.” In these ways, the professional freelancers
demonstrate that the ACA’s decoupling of healthcare benets from traditional employment
have enabled and empowered them to pursue their occupational passion.
“I now have healthcare at a very minimal cost to
myself. I’ve stood to benet greatly from this new
law being enacted,” shared a freelance respondent.
9
In light of the current changes in the workplace landscape, what do freelancers think about
freelancing for a living? Why are they doing it, what is motivating them to do it, and how are
they doing it successfully? Freelancer survey respondents emphasize that freelancing is about
obtaining the freedom and exibility most full-time jobs don’t oer.
What Freelancers Say About Freelancing
Three out of four prefer freelancing to traditional employment, and ve out of six cite reasons
other than money as satisfaction drivers, including the ability to derive more enjoyment from
their work and avoid corporate politics. An overwhelming 74 percent have no intention of going
back to work as a full-time employee and intend to stay as a freelancer.
These independent contractors view themselves as small business owners and entrepreneurs
— not as people between jobs — with a goal to grow their business. They are professional
freelancers engaged in B2B relationships with their clients.
Professional Freelancers Identify As Contractors & Entrepreneurs
Professional Freelancers Are Very Satisfied —
Heres Why
What Are The Key Reasons You Love
Freelancing?
10
Healthcare is a pivotal issue for freelancers, and while ACA gives freelancers, who traditionally
have lacked easy access to health insurance better access, they also now have more
responsibility to manage this benet, which was historically taken care of by an employer.
Freelancers list ve skills — all soft skills — that they think make them great at what they do:
problem-solving, self-management, verbal communication, critical thinking, and planning and
organization.
These are the same skills listed by the World Economic Forum Jobs Report, 2016
ii
which touts
the most in-demand skills for jobs of the future. Respondents also reect being very engaged
in their particular niche, taking ownership and responsibility to stay up-to-date to facilitate a
protable working relationship with employers. One freelance respondent emphasized the
importance of passion — which is reected in a positive attitude toward work — stating that
“attitude” was behind being a great freelancer: “I really enjoy what I do. There is never a day that
I dread working.”
The Skills That Freelancers Say Make Them Effective
11
Other ndings from the study include:
1.
2.
3.
40 percent freelance to have more control over their time
43 percent have been freelancing for 5 or more years
60 percent intend to still freelance in 5 years
Professional Freelancers Are Very Satisfied —Heres Why
Do You Intend To Continue Freelancing In 5 Years?
How Long Have You Been A Freelancer?
12
The other half of the equation is employers. In this turbulent time of workplace transition,
what’s motivating them to engage freelancers? What do they look for when contracting with
free agents and how are they making collaborations with freelancers successful for their
organizations?
A bottom-line nding is that companies have recognized that strategic freelancing drives
corporate growth. Because of this, three-quarters of high-performing organizations intend to
hire more freelancers in 2016.
High-performing organizations are the ones that know how to engage freelance talent at a
strategic level. They are the ones that are re-engineering their business processes to better
engage and empower the blended workforce. In fact, over half of the companies that are the
top performers state that freelancers already comprise 20-50 percent of their labor force or
more. This represents a fundamental shift in the value and expertise that service organizations
deliver. The best organizations are conducting an orchestra of expertise made up of freelance
and traditional employees. They are deft at synchronizing dierent talent clouds of focused and
passionate professionals while delivering higher quality results to their clients.
One reason for this is that freelancers give employers access to an on-demand and exible
talent pool of specialized expertise through specialized skills. This allows teams to increase their
quality by growing, shrinking, or reformulating at dierent times based on the needs of specic
projects. This elasticity is one of the top reasons that HR decision-makers listed to explain why
they like working with free agents, along with the fact that freelancers are easier to engage and
can often start immediately.
What Employers Say About Freelancers
How Will The ACA Drive Decisions To Hire More Freelancers?
13
When it comes to more exible teaming, nearly all companies surveyed (93%) have noticed
more freelancers teaming up with traditional employees to work on projects together, creating
a blended workforce where sta members who are focused on core business areas can
partner with freelancers for eective execution. In fact, based on the research, the top skill that
employers derive from freelancers is teamwork (38%), followed by problem solving and self-
management.
Despite this, employers also highlight teamwork as one of the top three areas that freelancers
must strengthen (32%), along with written communication (34%) and leadership (33%).
Teamwork is additionally one of the main qualities—along with technical skills and credentials—
that employers look for when engaging freelancers. Taken together, these indicate that
organizations are still evolving their understanding of and engagement with the freelance
workforce.
Do HR Pros Expect To See An Increase
In Freelance + Employee Teaming?
Top 7 Areas For Development Among
Freelancers
The Skills That Businesses Say Make Freelancers
Effective
Top 5 Criteria For Engaging Freelancers
14
Easier engagement of contractors is in part due to the fact that new freelance-specic sourcing
methods are making it much more straightforward for employers to identify free-agent talent.
The study found that 38 percent of freelancers are now being sourced through specic freelance
worker sites, narrowing the sourcing gap with general online job boards (43%) and employment
agencies (39%).
Yet, despite the important benets that freelancers bring to organizations, transitioning to a
blended workforce brings new challenges, too. Though close to two-thirds of top performing
organizations nd it easy to locate the right freelancers and 19 percent struggle to nd the
freelancers they need. 21 percent of companies nd it challenging to deal with process and
performance management in relation to their freelance workforce. Employers also identify
visibility, accountability, control and the ability to scale eciently as other challenges. Locating
freelancers more easily is of course only the rst step — eectively engaging and supporting
them is critical to the ultimate success of any blended workforce.
How Companies Source Freelance Talent
15
How Challenging Is It To Find The Right Freelance Talent?
*for top performing organizations
Top Challenges When Managing Freelancers
16
One-third of companies still push freelance sourcing and engagement down to the line of
business manager rather than dealing strategically with process and performance management.
Half use online systems to help with freelance sourcing but not with work management.
The “Understanding the Gig Economy” study identied the following top ve areas in which HR
and procurement professionals need assistance:
With 21 percent of companies nding it challenging to deal with process and performance
management around their freelance workforce, it’s important to prioritize intentional planning
related to the ve areas above—and the study showed that’s exactly what the most high-
performing organizations do. Eective teaming between employees and freelancers does
not generally happen on its own; a planned marketplace, such as a freelancer management
platform, oers structure to provide organization, acceleration, and streamlining of
engagements with free agents. Field Nation’s freelancer management platform allows
for visibility into the full lifecycle of the work process; accountability for work status,
communication, and completion; control over the entire life of freelancer engagement including
support for training; and the ability to rapidly scale up and down with demand.
Powering The Pivot To A Blended Workforce
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4
2
5
3
Visibility into process management
Ability to easily scale the labor force up and down without sacricing quality or results
Accountability for results by freelancers, line of business managers, and stakeholders
Supporting and training freelancers for long-term success as part of the blended
workforce
Control over the selection, onboarding, deployment, and engagement process
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OBJECTIVES
Online work platform Field Nation and research rm Future Workplace conducted a survey,
“Understanding the Gig Economy.”
This survey was designed to:
METHODOLOGY
The study, which was conducted in January and February 2016, surveyed 1,559 professionals,
both freelance workers (primarily on-site technical freelancers) and enterprise HR/procurement
professionals, across the United States. There were 959 freelance respondents elded from
Field Nation’s database and 600 enterprise HR and procurement respondents sourced from
GMI, Future Workplace’s research partner.
COMPANY SIZE
On the enterprise side, 142 respondents were from organizations with more than 30,000
employees, and 458 respondents were from organizations with less than 30,000 employees.
“Understanding The Gig Economy” Research
Overview of Research Findings
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2
3
Understand the increased usage of freelance workers in the workplace.
Explain how the trend is gaining momentum in response to the Aordable Care
Act and other macro factors.
Help employers make strategic decisions around how to best integrate
freelancers with full-time employees in their organizations to create a powerful
new blended organization.
Study Participants
18
FINDINGS
Out of 600 HR decision makers surveyed:
Impact of ACA on the WorkforceImpact Of The ACA On The Workforce
The majority (68%) said that the ACA will have a high impact on hiring more freelance
workers.
Around three-quarters (74%) said that they will contract with more freelancers as a
result of the ACA.
What Impact Does The ACA Have On Hiring More Freelancers?
How Will The ACA Drive Decisions To Hire More Freelancers?
19
About one-third plan to eliminate healthcare benets, even though the vast majority
(89%) believe that healthcare benets are the key to attracting and retaining talent.
Are Healthcare Benefits Key To Attracting & Retaining Talent?
Employee Benefits Targeted For Elimination Due To The ACA
20
CONCLUSIONS
The Aordable Care Act is triggering companies to reduce benets and, concurrently turn to the
contingent workforce, especially since 2016 is when the tax penalty for individuals who opt out
of available programs is the highest at $695 and the Employer Mandate / Shared Responsibility
penalty calculations rise
iii
. The study ndings bear out ndings from the Congressional Budget
Oce from 2014, “In CBO’s judgment, the costs of the [employer] penalty eventually will be borne
primarily by workers in the form of reductions in wages or other compensation
iv
…”
At the same time, the ACA is also providing Americans with insurance coverage opportunities
that are unattached to traditional employment. Again, according to the CBO in 2014, “…the ACA
could inuence labor productivity indirectly by making it easier for some employees to obtain
health insurance outside the workplace and thereby prompting those workers to take jobs
that better match their skills, regardless of whether those jobs oered employment-based
insurance.
v
(emphasis added)”
Independent analysis agrees. “…workers who aren’t in their chosen eld may leave their current
jobs. That’s because, the CBO projects, these workers will have an easier time obtaining health
insurance outside their workplaces, freeing them to pursue the jobs that they’re passionate
about and skilled for.
vi
Our study shows that the Aordable Care Act is decoupling traditional employment benets,
like health insurance, from traditional full time employment arrangements, making benets
portable and freeing workers to pursue their passion and skill.
FINDINGS
Out of 959 freelancers interviewed:
60 percent said that the ACA has impacted their workload in some way.
How Does The ACA Impact You As A Freelancer?
*answers exceed 100% due to multiple sections
21
CONCLUSIONS
Healthcare and benets portability is a pivotal issue for freelancers. While the Aordable Care
Act gives freelancers better access to health insurance, which they previously lacked, they also
now have more responsibility to manage this benet, which was historically taken care of by an
employer.
61 percent don’t subscribe to a freelancer specic healthcare benets plan.
Do You Have A Healthcare Benefits Plan As A Freelancer?
22
Impact of ACA on the WorkforceRise Of The Blended Workforce
FINDINGS
Out of 600 HR decision makers surveyed:
60 percent plan to hire more freelancers in 2016 compared to 2015.
49 percent of top performers expect to increase their hiring of freelancers by 30
percent or more.
Compared To 2015 Do You Project Hiring More Freelancers?
How Will The ACA Drive Decisions To Hire More Freelancers?
23
58 percent of Top-performing rms say that 20 percent or more of their labor force
is already composed of freelancers.
Percent Of Top Performing Organizations That Is Freelance
CONCLUSIONS
Top performing organizations are the ones that know how to engage freelance talent at a
strategic level, and are structuring future plans around a managed blended workforce. The
blended workforce represents the de-commodication of freelance expertise and the strategic
engagement of on-demand know-how.
24
Impact of ACA on the WorkforceNew Ways To Source Freelancers
FINDINGS
Out of 600 HR decision makers surveyed:
Online job boards are the top way they source freelancers.
These freelance-specic sites narrow the sourcing gap with general online job
boards (43%) and employment agencies (39%).
38 percent of freelancers are now being sourced through specic freelance
worker sites.
How Companies Source Freelance Talent
CONCLUSIONS
The convergence of an improved technology and increased ease of discoverability of available
and skilled freelancers at a time of peak ACA-related cost drivers is expediting the blended
workforce of full-time and freelance workers.
25
Key Freelance Skills
FINDINGS
Out of 600 HR decision makers surveyed:
38 percent say the top skill freelancers bring to employers is teamwork.
Nearly all (93%) report that freelancers are teaming up with full-time employees to
work together on their company’s projects.
Do HR Pros See Increase In Freelance + Employee Teaming?
The Skills That Businesses Say Make Freelancers Effective
26
The most important skills for freelancers to strengthen include:
Written communication (34%), Leadership (33%), Teamwork (32%)
Top 7 Areas For Development Among Freelancers
CONCLUSIONS
Freelancers are no longer isolated by their work—teamwork between freelancers and full-time
sta is already powering the pivot to a blended workforce. Staying abreast of cutting edge
technology is a key point of skill development that both businesses and freelancers agree upon.
27
Picture of Todays Freelance Workers
FINDINGS
Out of 959 freelancers interviewed:
Nearly three-quarters (74%) indicated their ideal employment situation is freelancing
or small business ownership as opposed to having a traditional full time job.
40 percent said better control over their time is their primary satisfaction as a
freelancer, followed by 24% who said their ability to use their skills to do things on
their own terms is what makes them feel most satised with their freelance role.
54 percent say that their typical freelance relationship with a client spans multiple
engagements over more than 10 months while 20% indicate their relationship is less
than one month.
Professional Freelancers Are Very Satisfied – Heres Why
Length Of Typical Freelance Relationship With A Client
28
53 percent engage 5 clients a month or fewer, while 47 percent have more than 5.
Average Number Of Monthly Clients For Freelancers
Nearly three fourths (73%) said that they didn’t get help establishing themselves as
freelancers.
Nearly all (95%) said their family has been at least somewhat supportive about the
decision to go freelance.
Who Helped You Establish Yourself As A Freelancer?
How Supportive Is Your Family Of Your Choice To Freelance?
29
Between 41 percent and 72 percent of Professional freelancers make the same or
more money than they did when they were full time employees. Even those who
make less do so for their own reasons.
Professional Freelancers Make The Same Or More Money
CONCLUSIONS
Today’s freelancers are willing to make less money to gain greater freedom and exibility.
While the freelance career path is not taught in the U.S. school system, once professionals nd
their way to the freelance path, a staggering number have no desire to leave freelancing for
traditional full-time employment, and families are supporting freelancers’ decisions to become
free agents.
30
Impact of ACA on the WorkforceHR’s Experience With Freelancers
FINDINGS
Out of 600 HR decision makers surveyed:
The top three benets listed that freelancers oer employers over full-time
employees are having a more exible team (46%), that they can often start working
immediately (46%), and the ability to access specic niche skills (45%).
Top 5 Benefits Of Freelancers Over Employees
The top concerns with engaging freelancers include their availability (41%), their
technical capabilities (35%), and managing a consistent brand experience (34%).
Top Concerns About Engaging Freelancers
31
The most valuable skills that they derive from freelancers are teamwork (38%),
problem solving (36%), and self-management (32%), while the top skills that they lack
include written communication (34%), leadership (33%), and teamwork (32%).
The Skills That Businesses Say Make Freelancers Effective
Top 7 Areas For Development Among Freelancers
32
Companies evaluate freelancers based on the results of their projects (49%) and how
well they work in a team (47%). They typically evaluate them multiple times each
year (69%), and the most common incentive they use is bonuses (45%) followed by
stronger future contracts (42%) and more money per project (41%).
How Do Businesses Evaluate Freelancers?
How Often Do Businesses Evaluate Freelancers?
33
Top Incentives & Rewards Businesses Give Freelancers
CONCLUSIONS
Employers appreciate that freelancers are easier to engage and give them the ability to scale
up or down based on a project’s requirements. Experience and expertise have become the key
career currencies, with organizations less concerned with pedigree and which organization
a contractor comes from. Instead, over-performing organizations are more focused on the
exible, specialized skill set that freelancers oer, as well as their ability to team with in-house
employees. What matters most are the capabilities and credentials of the individual who’s
actually going to do the work, and the management structure that supports the freelance
workforce.
34
Spurred by competitive demands for leaner organizations, employers are pivoting to a
workforce blended with both full-time employees and freelancers. This new model of expertise
engagement is disrupting the classic employer-employee model. Many factors are converging
to contribute to these trends, including enabling technologies, societal attitudes, increased
mobility, decoupling of benets from traditional employment, continuing dissatisfaction with
traditional employment situations, and the war for talent. The Aordable Care Act is hastening
the arrival of the blended workforce.
Top-performing rms are leading the way, with over 50 percent of these organizations already
having more than 20 percent of their labor force consisting of contract/freelance workers.
The trend of companies hiring more freelancers is expected to accelerate in the next decade,
creating new challenges for business leaders, who must learn how to eectively manage
visibility, accountability, and control in relation to their freelance workforce. This workforce is
willing to make sacrices in order to gain the freedom and exibility aorded by the freelance
career path.
To prepare for the advent of the blended workforce, organizations can begin to strategize by
asking themselves the following questions:
By structuring future plans around eectively managing the blended workforce, organizations
will be better prepared to harness the power of free agents and make strategic, cost-eective
decisions around how to best integrate freelancers with their full-time employees.
The Gig Economy: Here To Stay
1
4
2
5
3
How could hiring more freelancers provide a strategic cost and capability
advantage to our organization?
How could traditional and freelance workforces be blended more eciently?
Where should we recruit qualied on-demand labor?
What else can we do to more fully leverage the gig economy?
How do we assure some standard levels of certication and rating across freelancers?
35
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36
Sources
i
McKinsey & Company. McKinsey Global Institute, A Labor Market That Works: Connecting Talent
With Opportunity In The Digital Age. June 2015. pp 55. https://www.mckinsey.it/download/le/
d/5088
ii
World Economic Forum, Global Challenge Insight Report, “The Future of Jobs Employment, Skills
and Workforce Strategy for the Fourth Industrial Revolution”. pp. 20 http://www3.weforum.org/
docs/WEF_Future_of_Jobs.pdf
iii
“Questions and Answers On Employer Shared Responsibility Provisions Under the Aordable
Care Act”, IRS.gov, https://www.irs.gov/Aordable-Care-Act/Employers/Questions-and-Answers-
on-Employer-Shared-Responsibility-Provisions-Under-the-Aordable-Care-Act, Accessed May 5,
2016
“Obamacare Employer Mandate”, Obamacarefacts.com, http://obamacarefacts.com/obamacare-
employer-mandate/ Accessed May 5, 2016
iv
“Labor Market Eects of the Aordable Care Act: Updated Estimates”, THE BUDGET AND
ECONOMIC OUTLOOK: 2014 TO 2024, February 2014, pdf pp. 6., http://www.cbo.gov/sites/
default/les/cboles/attachments/45010-breakout-AppendixC.pdf Accessed May 5, 2016
v
I bid. pdf pp. 7
vi
Gallagher, Suzanne. Feb. 24, 2014, “The Aordable Care Act: Not Jobs Destroyed, But Jobs
Opened”, http://www.pbs.org/newshour/making-sense/aordable-care-act-jobs-destroyed-
jobs-opened/ Accessed May 5, 2016
Also, see Dewan, Shaila. Feb 20, 2014. “How Obamacare Could Unlock Job Opportunities”, The
New York Times Magazine. http://www.nytimes.com/2014/02/23/magazine/how-obamacare-
could-unlock-job-opportunities.html Accessed May 5, 2016 “It may seem counterintuitive, but from
an economics perspective, this is a good thing, because it encourages the labor force to allocate itself
more eciently. Older workers will nally be able to retire, leaving openings for younger workers.
People will switch to jobs that better suit their talents. Parents will be able to spend more time with
their families. Such changes don’t always make people wealthier, but they make people happier. This
is allowing people to not have to stay in overworked, dead-end jobs that are probably making them
sicker, any longer than they need to,” says John de Graaf, executive director of Take Back Your Time,
an organization dedicated to reducing overwork. De Graaf says that people who work long hours
with little control over their schedules are more likely to suer ill health eects like heart disease. So
increasing their choices, he says, “may save more money on health than the act itself.”