Rethinking the 9-to-5

Welcome to The Shift, a weekly newsletter where I provide thought-provoking ideas to help you think differently about your career and money.

Last Week + This Week = It’s All Connected

I’ll make this quick.

Last week I wrote about the history of the employer – employee relationship and what is shaping that now. Read here if you missed it. This week I define what the future of work could look like based on that changing dynamic.

More Than A Side Hustle

I have a theory. Well, maybe it’s a prediction.

Instead, having multiple sources of income through contractual / independent work will become the norm.

Heck, this shift is already happening! It started with Uber drivers, Etsy shops, Airbnb hosts and other gig workers. Do we still call it gig work? Seems like that term has faded into the night. Anyway…

This trend is so much more than side hustles or passion projects that pay. 

In fact, I truly believe this will become the way of work for many of the educated, highly skilled, and experienced workers. Even those that are compensated well.

This type of work has the potential to offer better pay and more freedom, especially for this group of workers.

Going Independent

Contractual work might not be for everyone, but more people are doing it than you might think.

Nowadays 36% of employees are independent¹ . McKinsey says that’s a “notable increase” from 27% in 2016¹ . Perhaps this is individuals seeking control or freedom in this new world of work. Perhaps it is a response to inflation?  

Tradeoffs

The work world is changing. I wrote about a lot of the big picture things impacting how we work nowadays, last week.

But why would workers want to consider independent work? You don’t have health care benefits, job stability is uncertain, and retirement planning is a little more difficult. Those are all true statements.

I think that at the end of the day, it all comes down to trade-offs. And having a spouse with heal insurance doesn’t hurt!

I pulled a little list together of why I think this way of work has become more attractive for experienced workers:

1. We are behind.

This cohort is behind on career earnings. Raises have been hard to come by over the past 10 years (and those received during the pandemic years didn't keep up with inflation).

2. Regain control.

Multiple incomes can actually lead to more control over your time. Contractual work clearly defines the job or service you are doing and how many hours you are committing to complete that work. You regain control over your calendar.

3. Diversification.

If you've lived through the pandemic and the Great Financial Crisis, you know that layoffs are always a possibility. Having income from more than one source helps create a cushion in the event you are laid off.

4. Ease of opportunity.

It's easier than ever to find new forms of household revenue that don't take a ton of time (thank you internet).

5. Flexibility.

As the work-from-home and return-to-office debate rages on, this type of work becomes more attractive to those that prefer the flexibility of a remote or partially-remote position.

6. Fulfillment.

More and more people want to spend time on passion projects and they are waking up to the reality that many of those projects can generate income as a side gig.

Odd Twist - Why Independent Work Works

In an odd twist of things, independent workers have come to feel more secure in their jobs than previously². This is despite all the concerns I mentioned earlier.

What’s crazy is that people employed full-time also view the idea of independent work as less risky than they did in the past – 29% say it is less risky than permanent employment in a 2021 survey vs 18% in a 2018 survey².

I think that suggests fully employed people are really starting to consider this way of work.

Which means maybe my prediction will come true?! 😉

Let’s make The Shift!

Lindsey

Sources:

1. McKinsey American Opportunity Survey Spring 2022.

2. MBO Partners’ 2021 State of Independence report and Harvard Business Review.