Deloitte survey: Independent contractors also value workplace culture

by Brianna Crandall — September 21, 2016 — While the number of independent contractors is expected to grow to 54 million people by 2020 (MBO Partners: State of Independence in America 2015), the rise of the “gig economy” many forecasters see on the horizon may develop slower than expected.

With implications for office design and space management strategies to attract and retain workers, a recent online poll by global consulting services firm Deloitte of nearly 4,000 workers found that 67% of respondents who have worked as an independent contractor would choose not to do so again in the future. Additionally, more than 60% of employed workers said that their stability would suffer if they moved to independent contract work, and 42% worry about sacrificing good compensation and benefits.

Organizations have more to do to attract independent contractors

Four in ten respondents (41%) recognize that independent contracting offers more flexibility to work where, when, and how they want to as compared to full-time employment. However, respondents cite inconsistent cash flow and lack of employer-paid benefits as drawbacks that discourage them from pursuing independent work.

Furthermore, less than half (48%) of those who worked as an independent contractor were very satisfied with their experience, and more than half (56%) said the most important benefit of full-time employment is the steady income.

Mike Preston, chief talent officer, Deloitte, advised:

In order to achieve business goals, organizations should look to attract all talent pools. Organizations should start thinking about the culture they have in place and the experiences they can design for contingent workers.

Culture is key

There is more on respondents’ minds than financial security, according to the report. Nearly half of respondents said that a company’s culture is “extremely important” in choosing where they want to work. Of those respondents, 53% of Millennials and 50% of Generation X respondents noted that culture is “extremely important,” while only 40% of Baby Boomers said the same.

Those who have previously worked as an independent contractor, however, agree — nearly half said that a lack of connection to a company’s culture would discourage them from working independently in the future. This also affects adaptation to a company’s culture, with nearly half (45%) of all respondents believing that it would be difficult for an independent worker to understand and connect with a company’s internal culture. A full 44% of those who have worked as an independent contractor agreed, as did half of the Millennial cohort who responded to the survey.

Mike Preston added:

Today’s workforce wants the ability to choose how they work — full-time or contract work. Regardless of what they choose, they crave a holistic experience that combines good compensation and benefits with a focus on well-being and career development.

Interest in contract work remains

Despite the challenges, more than one-third of respondents (34%) said they would consider working independently. Women clearly see the upside of the flexibility that contract work offers. Almost half (46%) of women respondents indicated the ability to attend to personal needs is an advantage of being an independent contractor.

While women recognize the benefits of contract work, men are still more likely to work as an independent contractor — 42% of men versus 27% of women. Men also indicated more satisfaction with independent contract work than women (50% vs. 45% respectively).

Methodology

The Evolving Workforce Survey gathered online responses from nearly 4,000 full-time, part-time, and independent contract workers across three generations in 13 major markets around the United States, including New York, Los Angeles, Boston, and Dallas.