Last week I published an article about freelancers. Of the 53 million that make up the U.S. workforce, less than half (38%) are millennials. I categorized myself as a millennial, freelancer. Still, here is something worth noting: There are five segments of freelancers that make up the independent workforce, not all of us are the same. The five segments are as follows:
- Independent Contractors = 40% (21.1 million) – These “traditional” freelancers do not have an employer. Instead they do freelance or temporary work on a project-to-project basis.
- Moonlighters = 27% (14.3 million) – People with a primary, traditional job who “moonlight” by doing freelance work. For example, a corporate-employed digital marketer also doing photography gigs on the side.
- Diversified Workers = 18% (9.3 million) – People with multiple sources of income from a mix of traditional employers and freelance work. For example, a student that works part-time at a corporation, works night-shifts during the week at a restaurant and makes additional income on the weekends babysitting.
- Temporary Workers = 10% (5.5 million) – Persons with a single employer, client, job or contracted project where their status is temporary. For example, a person working for one client on a contract basis for a months-long project perhaps as a fill-in for an employee on pregnancy leave.
- Freelance Business Owners = 5% (2.8 million) – Business owners with no more than five employees who consider themselves both a freelancer and a business owner. For example, a graphic design artist who hires a team of other professionals to build a startup ad agency, but still identifies as a freelancer.
(The above 5 segments come from the study, “Freelancing in America: A National Survey of the New Workforce“)
With this new information, I categorize myself as a diversified worker. Simple math will point out that 45% of freelancers do not have a traditional employer, meaning they work for themselves and only themselves.
But why only 38%?
Freelancing, as I said in my previous post gives one the unique opportunity to be in control. Millennials have been commonly stereotyped as “lazy workers”. That being said, one would think we would crave the element of control freelancing offers, perhaps so we could have more flexibility in our schedules to be lazy. A study done by Universum Global may offer some insight into why only 38% of millennials are freelancers. Below are the percentages of millennial respondents who rated a specific job characteristic as one of their top three most attractive.
- 85% did not find having personal control over working hours to be in their top three most attractive job characteristics – It seems to be common knowledge especially for anyone going to work on “Wall Street”, that employees will work a large number of hours, but will also reap the benefit of having done so.
- 78% did not find a high level of responsibility to be in their top three most attractive job characteristics – Very little millennials seem to care about the entrepreneurial element of being a freelancer. Perhaps, being your own boss is too much work.
- 74% did not find flexible working conditions to be in their top three most attractive job characteristics – It seems that millennials are okay with not having a completely flexible schedule and that may be because they see things like health coverage and a 401K as more desirable.
- 73% did not find the ability to integrate personal interests into their schedule to be in their top three most attractive job characteristics – Another stereotype of millennials is that we cannot separate personal from professional. Well the majority of us seem to be able to do so which is another reason why the freelance life may not be so appealing to us.
On the flipside…
- 42% found a clear path for advancement to be in their top three most attractive job characteristics – This may be why so many corporations are creating and maintaining leadership, development programs. What better way to retain top talent than to cultivate it yourself? These programs are attractive to candidates because they usually have a set career path within the company after completion of the program.
- 43% found professional training and development to be in their top three most attractive job characteristics – Professional training and development is something one would have to pay for as a freelancer, but as an employee one can take advantage of these company offerings.
- 45% found having leaders that support their development to be in their top three most attractive job characteristics – Not everyone is self-sufficient. Freelancing requires a lot of that. Sometimes having a fresh set of eyes to offer constructive criticism is better than a person doing it for himself. After all, we are our own worst critics right?
- 49% found secure employment to be in their top three most attractive job characteristics – As I said in my previous post freelancing is risky. A freelancer may experience shortages in work if competitors constantly underbid them. Freelancers also cannot take advantage of perks like paid sick leave which some employers offer.
The data above are indeed fact. My assumptions are just that, assumptions. However, they are guided and insightful. Being a millennial myself, being a freelancer and having once had a traditional job, I would still choose the traditional job over freelancing any day. That may come as a shock, I know. Yet, I would rather give up having more control over my schedule to have a steady flow of income and secure job. I can take all of the experience I have picked up while freelancing to negotiate an ideal salary among other things. As with anything though, you win some and you lose some.
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