Last week, MBO Partners released its 10th annual report in the MBO Partners State of Independence research series. Emergent Research (that's us) worked with MBO Partners on this ongoing study across all 10 years.
The research was based on surveys of over 23,000 independent workers, gig workers, and micro-business owners and was augmented by 1,500 in-person interviews throughout the decade.
Over the next couple of weeks, we'll be highlighting some of the key findings and insights from this research.
And we're starting with one of the most interesting and surprising findings:
Most full-time independent workers now consider independent work to be more secure than traditional jobs.
As the study chart below shows, the percent of full-time independent workers reporting that independent work is more secure than a traditional job has grown from a minority share of 32% to a solid majority of 56% over the past decade (2011-2020).
This is interesting both from a sentiment perspective as well as the magnitude of growth. Its' also interesting the growth was relatively steady across the study timeframe.
When we ask in interviews why independents feel more secure, we hear three common themes:
1. Because they control their work and business, they feel more secure than being at the mercy of an employer and a boss.
2. They feel that having multiple clients and diversified income streams is more secure than relying on a single income source.
3. Due to layoffs, company failures, changes in corporate directions, and a broader lack of corporate loyalty to their employees, they report that traditional jobs are no longer as secure as they once were. This makes independent work feel more secure on a relative basis.
The pandemic has amplified all three themes, and the third in particular.
Even though independent workers have been hit hard economically by COVID-19, most believe they are better off than those who have lost their traditional jobs and their entire income source.
There are several other reasons why independents feel more secure.
Over the ten years of this study, there's been a growing array of products and services that make it easier to be a successful independent worker. These include low-cost, Internet-based tools, services, and online marketplaces for everything from billing and project management to marketing and sales.
The ACA (Obamacare) was rolled out early in the study series, making it much easier for independents to get health insurance. Health insurance is often considered the most important job benefit, and prior to the ACA the lack of affordable health insurance options for independent workers was a major problem.
Independent work is also viewed much more positively than it was a decade ago. Because of this, consumers and businesses are more open to hiring independent workers, making it easier to find and retain customers than a decade ago.
One of the biggest reasons people don't pursue independent work is that they consider it too risky - and much riskier than a traditional job. And while most non-independents will continue to see it that way (we'll have more on this topic in the near future), more people now realize that independent work can be as secure, or even more secure, than having a traditional job.
Because of this shift, more people will likely choose to become independent workers in the coming years.
