Independent Contractors would choose not to do so in the future

While the number of independent workers 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.

A recent online poll by Deloitte of nearly 4,000 workers found that 67 percent of respondents who have worked as an independent contractor would choose not to do so again in the future. Additionally, more than 60 percent of employed workers said that their stability would suffer if they moved to independent contract work, and 42 percent worry about sacrificing good compensation and benefits.

Organizations have more to do to attract independent contractors

Four-in-ten respondents (41 percent) 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 percent) of those who worked as an independent contractor were very satisfied with their experience, and more than half (56 percent) said the most important benefit of full-time employment is the steady income.

Culture is key

There is more on respondents’ minds than financial security. Nearly half of respondents said that a company’s culture is “extremely important” in choosing where they want to work. Of those respondents, 53 percent of millennials and 50 percent of Generation X respondents noted that culture is “extremely important,” while only 40 percent 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 percent) of all respondents believing that it would be difficult for an independent contractor to understand and connect with a company’s internal culture. Forty-four percent of those who have worked as an independent contractor agreed, as did half of the millennial cohort who responded to the survey.

Interest in contract work remains

Despite the challenges, more than one-third of respondents (34 percent) said they would consider working independently. Women clearly see the upside of the flexibility that contract work offers. Almost half (46 percent) 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 percent of men versus 27 percent of women. Men also indicated more satisfaction with independent contract work than women (50 percent vs. 45 percent respectively).