Independent Work – Evolution of a new work ecosystem – III
The concept of independent work, as popular as it is in the west, is also catching up with us Indians. LinkedIn reports a 40% growth in independent workers on their platform which includes a large number of Indians. Many, however, still won’t take the plunge of quitting their traditional jobs over independent work because of the regular income security that the former offers. Having said that, a percentage of people, especially in the current generation, are venturing into this concept in a safe manner, i.e., working independently to earn supplemental income. Many students, young workers, housewives, stay-at-home mothers and retired professionals have inclined towards independent work to not only earn some extra dough, but also make good and productive use of their free time.
Although independent work is trending, studies say that it will not follow the life cycle of a trend – bloom and fade away soon. That is because the reasons why people choose to work independently, as discussed in detail in the previous blog, will continue to inspire people for years to come. So, it is safe to say that independent work is not a fad, it is here to stay.
The McKinsey report suggests that apart from being an alternative way of earning a livelihood, independent work has also contributed to upping the economy. Accordingly, the rise in the number or independent workers in India, as well as globally, has influenced economic growth in the following ways:
a) Takes care of employment by allowing people to network and choose from a wide range of work or employment options. People without jobs or those who cannot find jobs suiting their interest and skill set find independent work as the best suited option.
b) Influences labor force participation by encouraging them to try the alternate and rightful way of earning.
c) Raises demand for independent professionals by providing many forums that they can use to showcase their talent directly to the consumers. Please read the previous blog for complete explanation.
d) Increases productivity by letting the workers follow their passion. This motivates the workers to work in the most effective and efficient fashion, thereby increasing their productivity. Most independent workers rate higher on the satisfaction scale, thus implying that when you love your job, you perform well and so you end up innately satisfied.
The McKinsey report outlines the features of independent work that are responsible for its growing popularity among both – the workers and the employers.
1. Autonomy. A key feature of independent work is that workers can exercise control over their workload and work portfolio. This gives them flexibility over traditional workers who are required to work within set parameters. Independent workers can decide which assignments to accept or reject for a variety of reasons – fee being offered, the desirability of the client, or the timing of the task – and they can change their decision based on economic and personal reasons. On the whole, independent workers have more flexible schedules and autonomy than traditional workers in determining when and how they choose to work.
2. Payment by task, assignment, or sales. Independent workers are paid by the hour, day, contract, or task. For example, an independent tax accountant gets paid based on the hours spent or tax forms filed; a website designer will be paid upon completing the design work; and a freelance writer is paid on an hourly basis or the upon completing assignments. So an independent professional is paid depending on the amount of work performed. Unlike a salaried employee, they are not paid for time not spent working. This also means that they have the freedom to work and earn as much as they can/want. As a result, independent workers often have more variable income than workers with a fixed salary.
3. Short-term relationship between the worker and the client. Independent professionals work on short-term assignments, such as giving someone a ride, designing a website, writing content, or working on a legal case. Upon completion, they tend to move on to another customer. As mentioned above, this relationship may continue for a few hours to a few months depending on the job. Both the worker and the customer acknowledge and accept the limited duration of the relationship.
The McKinsey study suggests that a work contract should not be assigned for more than 12 months as it starts to feel like a traditional job and independent work loses its essence. In short, independent workers are ultimately their own bosses.
