MBO Partners State of Independence 2019

MBO Partners State of Independence 2019

• 1.
  The State ofIndependence in America 2019 REPORT The Changing Nature of the American Workforce
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  About the Study The2019 MBO Partners State of Independence in America is the 9th consecutive year this study has been conducted. Since 2011, independent workers have completed over 21,000 in- depth surveys and over 1,400 independent workers have been interviewed in-person as part of this study series. For the 2019 study, Emergent Research and Rockbridge Associates conducted an online survey in March of 2018. This survey had responses from 3,584 residents of the U.S. (aged 21 and older); the results were used to size the independent workforce and profile motivations among independent and traditional workers (margin of error: +/-1.7 percent). The data was weighted to reflect the demographics of the U.S. The 2019 results are generally statistically consistent with the survey results from the prior 8 years. View the report online: www.mbopartners.com/state-of- independence
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  Key Findings 3  Full-TimeIndependents: A Solid Core Amidst a Very Strong Job Market  The Rise of Occasional Part-Time Independents  Youth Will Be Served: The Rise of the Millennials  Working in a Networked World: Technology, Platforms, and Globalization  The Financial Well-Being of Independents
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  Independence Remains aViable Career Path for Many 4  Full-Time Independents declined by 3.1% to 15.3 million.  Strong traditional job market pulling people back to traditional employment, especially reluctant independents  Part-Time Independents (less than 15 hours per week) declined by 2.7% to 10.8 million from 11.1 million in 2018.  Number of occasional independent workers increased by 6.3% to 15 million, up from 14.1 million in 2018  Economic factors driving need for supplemental income  Side gigs have become more popular  Digital platforms make it easier to pick up work TOTAL INDEPENDENCE REMAINS FLAT, EVEN AGAINST THE STRONGEST JOBS MARKET IN RECENT HISTORY 2014 2016 20182013 2015 2017 2019 FULL-TIME INDEPENDENT WORKERSINTHE U.S. 20122011 16 Million 16.9 Million 17.7 Million 17.8 Million 17.8 Million 16.9 Million 16.2 Million 15.8 Million 15.3 Million
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  The Number ofOccasional Independents Continues to Grow Rapidly 5 10.5 12.9 14.1 15 2016 2017 2018 2019 NumberofOccasionalIndependentsin theUnitedStates (in millions) “For a large chunk of the American population, part- time or occasional independentwork has become crucial tomaking ends meet andshore upshaky finances. Themarket issupplying a solution, in the form of platforms and marketplaces that enableoccasional work or sidegigs.” - MBO Partners State of Independence
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  Reluctant Independents areLeaving 6
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  Full-Time Independent WorkersDeclines Slightly as Baby Boomers Age out of the Workforce 7
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  Independent Satisfaction isthe Highest it has Ever Been 8 13% RESPONDED 7, SO ROUGHLY 9 OUT OF 10 ARE SATISFIED OR HIGHLY SATISFIED 4% 3% 3% 3% 2% 2% 2% 2% 1% 38% 27% 33% 34% 34% 33% 24% 26% 23% 58% 70% 64% 63% 63% 65% 74% 72% 76% 2011 2012 2013 2014 2015 2016 2017 2018 2019 Very Dissatisfied (1-3) Neutral (4-7) Very Satisfied (8-10)
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  Full-Time Independents Chooseto Work this Way 9 55% 57% 56% 53% 58% 59% 65% 63% 67% 15% 13% 14% 13% 9% 10% 9% 8% 7% 30% 30% 30% 34% 32% 30% 26% 26% 26% 2011 2012 2013 2014 2015 2016 2017 2018 2019 My choice completely A result of factors beyond my control A combination of both EmploymentChoice
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  People Plan toContinue Working as Independents 10 PERCENTAGE OF RELUCTANT INDEPENDENTS AT LOWEST LEVEL IN 8 YEARS Continue working as an independent worker Build a larger business Seek a permanent, full-time job Seek a permanent, part-time job Retire Stop working altogether 11% 18% 2% 3% 1% 16% 15% 2% 5% 2% 2011 2015 63% 15% 13% 2% 4% 1% 2016 61% 14% 10% 4% 6% 1% 64% 11% 3% 6% 3% 2017 2018 70% 12% 7% 1% 7% 2% 2019 12% 63% 58%
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  How Independents FindWork: 11 WORD OF MOUTH DOMINATES, BUT SOCIAL MEDIA & ONLINE TALENT MARKETPLACES ARE GROWING RAPIDLY Top Methods of Finding Assignments WordofMouth SocialMedia& OnlineTalent Marketplaces OnlineCommerce Marketplaces(eBay,Etsy, Airbnb) Agency/Broker FormerEmployer Top Way Top 3 Ways 46% 64% 17% 30% 9% 15% 8% 15% 6% 17%
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  Usage of OnlineTalent Marketplaces Continues to Expand 12  Online talent marketplaces increasingly becoming just another sales channel for many independent workers  Based on interviews and other research, the main uses of online marketplaces are to:  Fill in gaps in schedules  Find new clients, especially for those who are new or starting up  Learn new skills  Explore new markets  There is a lot of testing and experimentation with marketplaces going on MANY INDEPENDENTS SUPPLEMENT TRADITIONAL CHANNELS FOR FINDING WORK WITH ONLINE MARKETPLACE USE Used an online talent platform to find work over the past 12 months Plan to use an online talent platform to find work over the next 12 months 4% 8% 2012 2013 14% 16% 2014 15% 18% 15% 2015 2016 20% 25% 2017 18% 3% 5% 22% 2018 24% 29% 2019 24%
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  Millennials are MostLikely to Find Work Via an Online Talent Marketplace 13 Boomers Gen X Millennials 13% 15% 38% Use of talent marketplaces by age cohort
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  Economic Contribution 14 Over thepast year, independent workers generated roughly $1.28 trillion of revenue for the U.S. economy, equal to about 6.2 percent of U.S. GDP (2018), or the entire economic output of Spain.
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  Independents Contribute Significantlyto the Global Economy 15 =INDEPENDENTSWHO PROVIDEGOODS/ SERVICES TOCUSTOMERSOUTSIDEOF THE U.S.
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  Remote and DispersedWork is on the Rise for All 16 47% of traditional, full time employees report working remotely at least some of the time.  19% work remotely half of the time  12% work remotely full time 83% of full time independent workers report working remotely at least some of the time.  51% work remotely more than half of the time  37% work remotely full time
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  Meet the DigitalNomad 17 A DEMOGRAPHIC PROFILE Many keep costs down by combining low-cost living with earning income at the wage rates of higher cost locations. Geoarbitrage report earning $75,000 or more per year 790,000 are part-timers and many work only part of the year. As a result, their income from varies widely. 46% are female and over half (54%) are older than 38 years old 31%
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  By the Numbers 18 4.1million independent workers identify as digital nomads* 16.1 million Americans say they will become digital nomads over the next 2-3 years 41 million Americans say they may become digital nomads over the next 2-3 years 3.2 million traditional workers identify as digital nomads*
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  Income Scales withAge: Boomers are the Big Earners 19 $52,200 $71,500 $84,000 Full-Time Independent Workers Average Earnings by Age Cohort Millennials Gen X Boomers
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  Those with TraditionalJobs See the World Very Differently than Independent Workers 20 Always wanted to be own boss Don’t like answering to boss Flexibility is more important than making the most money Doing something I like is more important than making the most money Traditional jobs are more secure than independent work I would rather have a permanent job than work on my own 38% 46% 56% 70% 58% 66% 72% 77% 53% 19% TraditionalJob Holder IndependentWorker 44% 75%
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  Comparing Work SatisfactionBetween Full-Time Independent Workers and Traditional Job Holders 21 (ASKED OF RESPONDENTS WHO SCORED 6 OR HIGHER ON SATISFACTION) WorkAttributes Satisfaction with Pay/ Income Independent Worker TraditionalJob Holder I have control over where and how I work I have interesting work My clients or employer appreciates the quality of my work Provides benefits I get paid well I have regular income 79% 24% 57% 37% 60% 39% N/A 55% 38% 48% 32% 74% Independent Worker TraditionalJob Holder Very satisfied or satisfied Neither satisfied or dissatisfied Very dissatisfied or dissatisfied 69% 66% 16% 16% 15% 18%
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  About MBO Partners 22 MBOPartners delivers solutions that make it safer and easier for enterprise organizations and top independent professionals to work together. Through its proprietary platform, MBO has built a comprehensive workforce ecosystem that fuels both sides of the independent economy. MBO strengthens relationships, minimizes risk, and maximizes value for its clients. Its unmatched experience and industry leadership enable it to operate on the forefront of the independent economy and consistently advance the next way of working. To learn more, visit www.mbopartners.com.
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  Contact [email protected] Questions?