The Future of Work is Independent: Why We Need a New Social Contract

Today's issue of The Great Realization is authored by Miles Everson , CEO of MBO Partners.

It was my privilege to take part in the closing keynote at the recent “Collaboration in the Gig Economy” event in Dallas, hosted by Staffing Industry Analysts (SIA).

As I stood before industry leaders, I aimed to make one thing crystal clear: We're smack in the middle of a workforce revolution that is forever changing the social contract. The contract has already been altered, but much more needs to happen.

As the CEO of MBO Partners and a long-time observer of workforce trends, I've watched this revolution unfold. Let me break it down for you.

The Everson Evolutions

The workforce landscape is being reshaped by six key forces, or evolutions. I didn’t invent these, of course, but I talk about them as a unified group all the time.

1. The rate of change is accelerating: While change is a constant in our universe, changes are now occurring faster than ever before: in our technologies, our global economies, and in how we live and work.
2. Progress is deflationary: Innovation is driving costs down and value up.
3. The fractionalization of everything: Work is being broken down into smaller, more specialized tasks. The fractionalization of work increases the participation of workers and enhances productivity.
4. From knowledge stocks to knowledge flows: We're moving from static expertise to dynamic, collaborative learning. And because knowledge is cumulative and collaborative, the sharing of knowledge improves quality.
5. The war for talent: With more people leaving the workforce than entering it, the talent crunch is real. Contrary to popular opinion, we have a scarcity of talent and shortage of workers here in America—not a surplus.
6. The state of independence in America: More workers than ever before are choosing to become independent. And the younger generations are turning independent earlier and more intentionally guaranteeing that this trend will continue and escalate.

These forces are converging to create a perfect storm of disruption in how we work, where we work, and who we work for. And trust me, this isn't just another fleeting trend. It's the inevitable consequence of technological progress.??

Think about it: We've gone from massive, multi-million-dollar computers owned only by corporations and governments to an entire population of citizens carrying supercomputers in their pockets.

The barriers to entrepreneurship have never been lower.

The Independent Workforce

At MBO Partners, we've been tracking the independent workforce for over a decade. Our annual "State of Independence in America" report is the longest-running study of its kind.

I was pleased to provide a preview of our 2024 report that will be released October 15th, available on mbopartners.com .? The data reveals some eye-opening statistics:

• The full-time independent workforce grew by 6.5% this year alone.
• 4.7 million independents are now earning over $100K annually.
• 11.2 million high-value knowledge workers are providing services to businesses as independent professionals.

But here's the kicker: these independent workers aren't merely surviving—they’re thriving. Our latest research shows that when independents compare their current life and work to when they were full-time employees:

• 84% of independents report being happier
• 79% say they're healthier
• 65% feel more financially secure

Why? Because people crave freedom, flexibility, and the ability to do the work they love on their own terms. Convergence of innovations has made this possible in ways we couldn't have imagined even a decade ago.?

And it's not just workers who benefit. Companies that embrace the independent workforce gain agility, innovation, and access to top talent. That's why I advocate for companies to allocate 30% of their workforce spend to independents.

The Need for a New Social Contract

But here's the problem and why we need to rewrite the social contract.

Our current systems—from healthcare to retirement benefits—are built around the assumption of long-term, full-time employment with a single company. That model is as outdated as a VCR in the age of streaming.

We need a new social contract that reflects the realities of the modern workforce. This isn't about dismantling employee protections or benefits. It's about creating systems that work for everyone, whether they're traditional employees or independent professionals.

In my speech at SIA and in my forthcoming book, Free Birds Revolution: The Future of Work and the Independent Mind , I propose a new social contract with three key parameters:

1. An accreditation system to certify self-employed workers based on qualifications and knowledge.
2. The right for certified independent professionals to choose their work arrangements.
3. Access for independent workers to essential programs like mortgages and financial opportunities that have traditionally been tied to full-time employment.

We need portable benefits that follow workers from gig to gig. We need education systems that prepare people for lifelong learning and multiple careers. We need tax structures that don't penalize independent workers.

Is this a challenge? You bet. But it's also an incredible opportunity.

The independent workforce is a wellspring of innovation, creativity, and entrepreneurship. It's a chance for people to find more fulfilling work lives and for companies to become more agile and competitive.?

The future of work is independent. It's time for all of us—workers, businesses, and policymakers—to embrace this reality and create systems that support and nurture this new way of working.?

The free birds are ready to fly. Are you ready to join the revolution?