Dispatches From The New Economy: The On-Demand Economy And The Future Of Work
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Transcript of Dispatches From The New Economy: The On-Demand Economy And The Future Of Work
DISPATCHES FROM THE NEW ECONOMY:
THE ON-DEMAND WORKFORCEQUICKBOOKS SELF-EMPLOYED
From delivery, transportation and household errands, to professional services and consulting, the on-demand economy is changing the way people consume goods and services.
It is also changing the way people work. Intuit and Emergent Research forecast that the number of people working on-demand jobs will grow from 3.2 million Americans to 7.6 million by 2020.
At Intuit, we believe that this is a once in a generation opportunity to empower the future of work and a new face of entrepreneurship.
We also believe that doing so will require a new mindset and most importantly, a deep and objective understanding of the aspirations, motivations and pain points of those choosing on-demand jobs.
Who are they? Why did they choose this work? How satisfied are they? What are their pain points? What do they want?
To answer these questions, we embarked on a research project in partnership with Emergent Research and eleven on-demand economy and online talent marketplace companies.
INTRODUCTION
Emergent Research
1
8 KEY FINDINGS
1. The majority of on-demand economy providers are part-timers.
2. The primary reasons they work in the on-demand economy is to earn more money and to have greaterwork flexibility, control and autonomy.
3. Most on-demand economy providers are satisfied with their work.
4. Most on-demand economy providers plan to continue working with their on-demand economy partner.
5. Many on-demand economy providers are small business owners and/or builders.
6. The biggest challenges on-demand economy providers face are getting enough work and a lack of predictable income.
7. On-demand economy providers earn, on average, 22% of their household’s income through on-demand economy work.
8. The on-demand economy workforce skews young, but 18% are 55 or older. On-demand economy providers are also more diverse than the overall U.S. workforce.
Methodology:Survey of 4,622 providers who find work opportunities via the following platforms:
• Uber, Upwork, Wonolo, MBO Partners, OnForce, Work Market, Visually, HourlyNerd, Fiverr, Deliv and Field Nation
Results weighted to reflect the proportion of providers in each of the following segments:
• Drivers/Delivery• Online Talent Marketplaces• Field Service/Onsite Talent
The weights were developed based on the results from a separate, national survey of on-demand economy providers.
Definitions:On-demand economy providers - Individuals who work via an on-demand economy partner.
On-demand economy partners - Companies who provide a platform for on-demand work.
2
THE MAJORITY OF ON-DEMAND ECONOMY PROVIDERS ARE PART-TIMERSOn-demand economy providers report working an average of 40.4 hours per week with about 12 hours per week working for their primary on-demand economy partner
of on-demand economy providers have either a traditional full-time job (29%) or part-time job (14%)
43%
Works for more than one platform
Has their own business
Cares for family members
Full or part-time students
Primary on-demand economy partner company is their sole source of income
33%
39%
19%
11%
5%
3
ON-DEMAND WORK IS ONE OF MANY INCOME STREAMSThe average on-demand worker relies on three different income streams.
Top Sources of Income
On-Demand work
Traditional full-time job
Independent contractor / consultant / freelancer
Run own business / no employees
Traditional part-time job
Run own business / at least one employee or partner
Sell goods in online marketplaces
Temporary or talent agency
34%
24%
19%
9%
6%
5%
2%
1%
4
REASONS PROVIDERS WORKIN THE ON-DEMAND ECONOMY
To create and control my schedule
63%
46%
To be my own boss
32% For greater work / life flexibility
35%
Other Top Reasons
Other ReasonsWanted to try something new
For income while I look for other work
To gain skills to advance my career
Inability to find a job
32%
19%
17%
11%
The primary reason is to earn more money / supplemental income.
5
SATISFACTION AND RELATED ATTITUDESOn-Demand Economy Providers’ Level of Satisfaction With Their On-Demand Job
SatisfiedHighly Satisfied
54% 16% 7%
Dissatisfied
like controlling decisions about where, when and how they work91%
6
SATISFACTION AND RELATED ATTITUDESOn-demand economy providers report being happier and enjoying the social opportunities the on-demand economy provides. They also report more of their friends are starting their own businesses and/or working in the on-demand economy.
!
I am happier because I’m with an on-demand economy partner
I enjoy the social opportunities that working withan on-demand economy partner offers
More of my friends are working independently or starting their own businesses than in the past
Strongly / Somewhat agree Neutral Strongly / Somewhat disagree
28%63% 9%
14%58% 28%
30%36% 34%
7
Definitely
47%
Probably
34%
Might / might not
15%
Probably not
3%
Will on-demand economy providers continue working with their primary on-demand economy partner 12 months from now?
FUTURE PLANS
plan to continue working with their primary on-demand economy partner81%
8
32%
24%
MANY ON-DEMAND ECONOMY PROVIDERS OWN OR PLAN TO BUILD A SMALL BUSINESS
Want to build a business
Want to be their own boss
Own their own small business
39%
Being the Boss
I always wanted to be my own boss
I do not like having to answer to a boss
I will not go back to relying solely on a traditional job
Previous employers have not recognized the value I offered
I would rather have a traditional job than be my own boss
Strongly / Somewhat agree Neutral Strongly / Somewhat disagree
18%74% 7%
16%54% 30%
25%50% 25%
27%48% 25%
64%13% 23%
9
ON-DEMAND PROVIDER CHALLENGES
Top challenges:
!
Getting enough work
Unpredictable income
Unfair Pay
Lack of job security
Understanding tax and legal obligations
Lack of benefits / health insurance
57%
50%
41%
22%
20%
19%
!
10
$ $ $ $
22%
ON-DEMAND PROVIDER INCOME
Average gross income from an on-demand economy job over past 12 months is $7,900.
Average percentage of household income generated by on-demand work
!
Reported hourly earnings ranged from $12 to $98 with an average of
11
ON-DEMAND ECONOMY PROVIDER DEMOGRAPHICS
Men
White African American Hispanic Asian/Pacific Islander / Indian sub-continent
Other
Women66%
64% 12% 10% 11%7%
34%
Gender
Marital Status
Age
Education
Ethnicity
41 38Average (years) Median (years)
Married
Not married and not living w/partner
Not married, but living w/partner
Divorced
Separated
Widowed
Millennials: Aged 18-34
Gen X: Aged 35-51
Baby Boomers: Aged 52-68
Seniors: Aged 69+
High school or less
High school degree / GED
Some college or 2-year degree
4-year college degree
Graduate or professional degree
Other
46%
24%
12%
9%
2%
1%
39%
36%
24%
1%
1%
9%
36%
31%
20%
2%
12
The on-demand economy is accelerating a move toward self-employment and is having a transformative effect on our economy.
We need to empower people to take advantage of the positive opportunities that the on-demand economy provides. We need to build new tools and supports to deliver stability for the growing self-employed workforce.
It’s time to look ahead with an informed and productive discussion about the future of work.
CONCLUSION