Professional Gig Economy - Defined

The Professional segment of the broader Gig Economy refers to a fast-growing pocket of experienced labor (5+ million strong in America alone…) who are choosing independent work over traditional employment.

These are the lawyers, accountants, nurses, marketers, Six Sigma, IT professionals who prefer the flexibility and variety of project/interim based work over the traditional employment career path.

Regardless of discipline, Pro Gig workers tend to share the following attributes:

• Mid-to-late career professionals (15+ years' experience)
• Undergraduate degree (or more)
• Certified in their field (CPA, RN, PMP, JD)
• At least $80,000 in annual income
• Practitioners of their trade

While the term “Gig Economy” does a great job modernizing the way we talk about engaging talent outside traditional employment channels, the current focus of research/press coverage is on low-barrier-to-entry labor platforms such as TaskRabbit, Uber/Lyft and the ShiftGig’s of the world.?

By grouping all Gig Economy labor in the same bucket, we are missing the opportunity to address the specific challenges/opportunities facing each segment and the ecosystem that serves them.

To draw the proverbial baseball analogy, as we move from Single A to the Major League, the tools, services, bargaining positions of players, organizations and vendors are drastically different and thus deserve a unique lens when discussing each topic (e.g. wage, risk, benefits).

Coming back to an example from the Gig Economy, Pro Gig workers have far greater concern about where they are going to find their next gig (this is often such a concern it keeps Pro Gig talent stuck in traditional employment...) whereas Uber/Lyft drivers are just a few clicks away from their next gig on a smartphone.

As I will explore over subsequent articles, there are some very straight forward explanations on why these differences exist and my hope is by shining a light on the core issues from the Pro Gig perspective, we can take on the challenge of improving them.

The "Professional" segmentation of the broader Gig Economy is intended to help focus the conversation and provide a context to explore the unique needs of Pro Gig workers.

Where did the 5+ million Pro Gig worker estimate come from?

Current estimates of the Gig Economy in America range from 41.8 million (MBO Partner’s 2018 State of Independence in America) to 56.7 million workers (UpWork Freelancing in America 2018).?

MBO does a great job segmenting their 41.8 million workers into three categories:

• Occasional Independent “OI” (14.9 million, 35%): work irregularly/sporadically as independents at least once per month
• Part-Time Independent “PTI” (11.1 million, 27%): work < 15 hours per week
• Full-Time Independent “FTI” (15.8 million, 38%): work 15+ hours per week

MBO further segments FTIs into “High Earners” (3.3 million, 21% of FTI) defined as those with more than $100,000 in annual income.?

If we apply the same math to the UpWork population (56.7 million workers x 38% FTI x 21% High Earners) we get a 4.5 million High Earner estimate for the UpWork study.

When we consider the shadow population of project/interim workers currently routing through temp agencies, staffing firms and pay-rolling companies, while also relaxing the High Earner qualification from $100,000 to $80,000, it is a small leap to get to a Pro Gig worker estimate of 5+ million in America.

This estimate will only increase over time as the Gig Economy expands (MBO expects 6+ million more independent workers by 2023), thus increasing the Pro Gig segment.

More workers are choosing the Pro Gig Path

In 2016, the McKinzie Global Institute released a great study (Independent Work: Choice, necessity, and the gig economy) where they uncovered another interesting segmentation of gig workers focused on motivation:?

Pro Gig workers motivation mirrors "Free agents" in the graphic above: Primary Income, Preferred Choice, and represents a growing segment of overall gig workers. As noted in the MBO 2018 State of Independence in America study, the percentage of FTIs who choose independent work increased by 10 points between 2014 and 2018 from 53% to 63%.

It is easy to see this trend continuing as companies seek to engage more Pro Gig talent, the independent work path becomes more accepted, and the tools/systems/knowledge of how to thrive as a Pro Gig worker increase in the near term.

Conclusion

As more workers enter the Professional Gig Economy, it is imperative we acknowledge the differing needs of the Pro Gig worker so we can effectively address the challenges/ opportunities from their perspective.

Companies that engage Pro Gig talent are investing significant resources to understand how to optimize their interests when engaging independent professionals directly or through digital marketplaces.

For example, the SAP/Fieldglass report "External Workforce Insights 2018: The Forces Reshaping How Work Gets Done" poses this question to the C-level executives:

"How can businesses gain better value from independent contractors, consultants, and temporary workers, and from services providers like consulting firms, marketing agencies, and facilities management companies?"?

The same study helps companies understand "ways the external workforce is sourced, managed, and deployed—and how it can pay off for a business."

On the flip side, there is limited conversation on what is being done to empower Pro Gig workers with the tools, strategies, and knowledge to optimize their independent careers moving forward.

My goal is to be an advocate for Pro Gig workers by leveraging my experience and connections in the space so the future of work can pay off for Pro Gig workers as well.

So without further ado, welcome to the Professional Gig Economy.

Roger Lumpp?helps people find fulfilling work... not just another job. He aspires to shine light on the evolving Professional Gig Economy in order to improve market standards for workers and companies alike.

Opinions expressed are my own, all rights reserved.