Future Ready Leadership With Jacob Morgan Ep 112: What The World's Leading Organizations Are Doing About The Gig/Freelance Economy
Teresa Carroll is the Senior Vice President and General Manager of Global Talent Solutions for Kelly Services. Kelly Services is a staffing agency that has been around for 70 years and now it is a $6 Billion company that has 10,000 employees operating in over 40 countries around the world. Carroll, who is actually an engineer in the automotive industry by trade, has worked with Kelly Services for 24 years in several different roles.
Gig/Freelance economy is a huge topic of discussion these days. It seems like the gig/freelance economy is growing daily. Why are we having such a shift away from traditional, full time work? Carroll believes it is due to three key factors. First of all, it is due to demographics. We currently have four generations out in the workforce and as Carroll points out, "2 out of the 4 have clearly stated they don't want to work full time for the same company". The two generations she is talking about are the Baby Boomers, who are at retirement age but who don't want to fully commit to leaving the workforce yet and therefore are doing part-time work, and the Millennials who have grown up with technology since birth.
The second factor that plays into the move from traditional, full time work is technology. The advances in technology have allowed us to get work done in so many different ways using various platforms such as Upwork, Etsy, Uber, etc... It used to be that employees would have to go into the office where they were trained in one specific job, however now you can work from anywhere and jobs are more task driven. And finally, the third factor is psychographic, or how we think and make decisions. Today's workforce realizes they have certain skills and they are in demand, and therefore they get to work how they want to work.
When looking to figure out the true size of the gig/freelance economy it is hard to pinpoint due to challenges, such as the fact that there are so many different terms for this type of work. People use terms such as Gig workers, freelancers, independent contractors, entrepreneurs, etc... However, as Carroll points out, regardless of what name you use it is a fact that one third of today's workforce does not work full time. According to a study done by Kelly Services, there are 600 million workers in the developing world and out of those workers 115 million work as independent contractors, 50 million are freelancers/business owners, 40 million are temp workers and 30 million are a hybrid of several different types of work.
One thing you cannot deny is that this space is substantial and it is growing all the time. So what does this mean for companies? According to Carroll it means that companies need to continuously educate themselves on trends and they need to be able to adapt to a new type of workforce. We are going to see a move towards employing a mixture of full time, traditional employees as well as gig/freelance workers (depending on the needs of the company). With this shift in workforce it is important for HR and procurement personnel to work together and to sit down together to make a strategic plan. If companies choose to ignore this change they will not be able to attract and retain today's top talent, and therefore they will stunt the company's growth.
What does it mean for individuals? Carroll encourages young people who are just entering the workforce to try three types of internships; one with a large company with a well-known name brand, one with a small entrepreneur, and one as an independent contractor in order to get a sense of the different ways to work. She also says it is important for workers to "get a specific skill set and keep adding to it" and to stay educated about business trends and the different ways people are finding work.
What you will learn in this episode:
- Trends fueling the gig/freelance space
- Some of the research Kelly Services has done around ggi
- Common freelance myths
- How companies can manage their freelance pipelines in this new type of employee/employer relationship
- What advice Teresa Carroll would give to companies and employees
- What the next 5-10 years look like for the gig/freelance economy
- Whether or not traditional full time work will disappear in the future
- How AI and robots fit into the future of work
Links From The Episode:
(Music by Ronald Jenkees)