The Future Of Work Doesn't Look Like You Think It Does

The idea of people not being able to rely on traditional employment makes us all uncomfortable. But the reality is that the traditional, safe, “career” job has been eroding over the last 30 years.

In the 80’s, a job for life was standard and more than 60 percent of US workers had a pension. Fast forward to today and less than 14% of workers have a pension and predictions are that employees entering the workforce will work for 12-15 different companies. 

We are so attached to preconceived notions of what work looks like it can be hard to grasp the speed and scale with which work is changing.

This transformational shift has been brought on by a perfect storm of two economic trends that have been playing out for decades – and are now defining the future of work and entrepreneurship.  

The first is the massive rise in self-employment. A shift towards workers taking control of their own careers by going out on their own, supplementing and diversifying their income streams. 25 years ago, the contingent workforce in America was 6% - roughly 1 out of 20 workers. Today its 34% - 1 out of 3 – growing to 40 or 50% by 2020.

That intersects perfectly with a second trend which is the improvement technology is making in connecting supply and demand in a frictionless manner. Amazon, eBay and Etsy were early frictionless marketplaces accelerated by technology. Uber, Fiverr, and AirBnB are part of the next wave.

What we find so exciting about this trend is it’s solving what has traditionally been the number one challenge any entrepreneur or small business owner faces: finding customers. We’ve seen millions of small businesses struggle to find their next customer – and this struggle has set a bar, a hurdle for entrepreneurs to jump over. Technology is lowering this bar.

Perhaps there is no example more prevalent than the rise in the on-demand economy. Our research shows that 3.2 million people are currently working in on-demand, growing to 7.6 million American’s by 2020. Push a button, find a customer.

On-demand represents a different model. While there has been a lot of focus on the massive platform darlings leading the way, there hasn’t been enough understanding of why workers, the supply-side of on-demand, exists and is growing, and there certainly hasn’t been enough data backed discussion of workers and their needs. Last week I shared How The On-Demand Economy is Reshaping the 40 Hour Work Week.

Today, we are releasing a new set of data that digs even deeper into the broad range of motivations – and differing levels of satisfaction – among five key groups of on-demand workers. These five faces of the on-demand economy give us a view of the future of work. People motivated to be their own boss, build a career through independent work, find and pursue their passions, supplement their income, or find a stand-in while they search for a job.

The data shows five different faces. But in meeting hundreds of our customers I have come to appreciate that these profiles are fluid and there are often several motivations that influence people’s decisions on how to own their own career.

Marisa Goldenberg in Austin, Texas is a great example. When Goldenberg joined the upper ranks at Dell back in 2001, she was headed down the career path she’d envisioned. A graduate of Princeton and Harvard Business School, Goldenberg had always seen herself in a corporate world senior executive role. Throughout Goldenberg’s nine-year “fast track” at Dell, she positioned herself in roles that allowed her to understand – and lead – as many functions of the business as possible.

While this had been everything Goldenberg wanted, her career started to feel flat. So she left Dell and started exploring startup ideas and drafting business plans. Eventually, she discovered HourlyNerd, an online network that matches companies with MBA graduates for project work.

Goldenberg didn’t see this as something long-term, but she was intrigued enough to give it a shot. She first attracted smaller clients. Their rave reviews helped her quickly build a solid reputation, and before she knew it, she was landing the big guys, like General Electric.

A year and a half later, Goldenberg is still working with HourlyNerd, growing her own boutique consulting firm and recruiting a dedicated bench of elite talent to support her firm’s increasing project demand.

While consulting has allowed Goldenberg to keep her skills sharp, it’s also enabled her to build new ones. She’s always thinking about what gaps she wants to fill in her career, and seeks out projects that meet those needs and push her forward.

“I’m not a person who wants to stick to status quo,” said Goldenberg. “I want to look for opportunities that will help me learn and grow. Freelance consulting is a fantastic place to be right now because it keeps me challenged and excited.”

Another benefit of the on-demand model that Goldenberg sees is the “ability for people to create their own definition of flexibility.” While some of her consulting peers prefer part-time work, Goldenberg’s business is in fact full-time, with a steady stream of high stakes, high intensity consulting projects, as well as the effort involved to build a firm. “My definition of flexibility is one of location and time of day – I can choose to enjoy a midday hike and work at midnight. And I’ve been fortunate that my family can travel and spend time in other locations, as long as I have a phone and internet connection.”

On-demand consulting has led Goldenberg to what she was seeking when she left Dell: her passion. It’s not so much freelance consulting, but the on-demand industry itself. “I really love working with the HourlyNerd team,” said Goldenberg. “My engagement with them has helped me realize that I love this on-demand space. It has unlimited potential. I know this industry is my future.”

The on-demand economy is accelerating a shift to self-employment that is having a transformative effect on the #NewEconomy and the future of work.

It will continue to feel uncomfortable but let’s ensure that we listen, and understand the aspirations, motivations and pain points of those choosing to work for themselves and on-demand.