4 | Talent Trends Quarterly | Q4 2017
the rise of independent talent
Even as organizations look for solutions to
their skills gap challenges, one possible answer
is quickly emerging: the rise of independent
workers. Now more than ever, companies
are turning to freelancers, gig workers and
independent contractors. Workers themselves
are increasingly seeking independent work,
either as their primary source of income or as a
supplement to their full-time job.
A recent study conducted by the Freelancers
Union and Upwork predicted that by 2027,
more than half of U.S. workers will fall under
the definition of independents, up from about
one-third today. In its report, "Independent work:
Choice, necessity and the gig economy," McKinsey
estimates that 20 to 30% of workers in the EU-15
perform independent work, with countries such
as Germany at 25% and Spain at 31%.
This non-traditional workforce presents both
opportunities and challenges for employers.
While 61% of human capital and C-suite leaders
tell us they expect to shift more of their roles
to contingent, a portion also say managing
these workers and complying with associated
regulations are among their biggest headaches.
Comparatively across the 15 countries surveyed,
the percentages are especially high in Belgium
(17% say utilizing gig workers is their biggest
pain point), Australia (15%), Sweden (13%)
and Japan (13%).
Since labor laws vary by country, state and even
city, understanding how freelancers fit into
existing regulations can be daunting. Companies
not only need to establish a position from a
legal and risk perspective, but also a strategy on
how to direct and govern the masses of hiring
managers who may be making less than ideal
talent decisions.
Balancing the need to be cautious against
a pressing demand to find talent is often
difficult for human capital leaders. Our Talent
Trends survey reveals that scarcity is by far the
biggest pain point for employers, with nearly
1 in 4 reporting so.
Three-quarters of respondents also believe
scarcity and competition for talent are impacting
their business most this year. But with greater
workforce flexibility and access to an expanded
candidate pool that includes contingent talent,
organizations can get ahead of scarcity issues.
The top four countries that say utilizing gig workers is their biggest pain point
Belgium
Australia
Sweden
Japan
