Independent by Choice: GenX Workers Lead the Way

Freelancers, independent contractors, sole proprietors, consultants, temps, self-employed, or contingent—no matter what term you use, independent workers are a growing segment of the workforce.

Today’s independent workforce is 16 million strong in the U.S., and projected to grow to more than 20 million over the next two years, according to a recent study by MBO Partners.* While this number is impressive, even more interesting are the details about who makes up the independent workforce, how they became an independent worker, and how they feel about their work situation. Short answers: GenX, by choice, and they love it. Now the long answers…

The current independent workforce is heavily dominated by GenX (48%), followed by Boomers (30%), and is almost evenly split between men and women. Spread across the U.S. and throughout industries, the location and profession of independent workers is quite varied. Not surprisingly, creative/design is the top occupation—but at only 9%–followed by consulting (8%) and education/training (7%). Independent workers live anywhere in the U.S. and do practically any sort of professional work you can imagine.

This generational, location and professional breakdown debunks the common assumption that people become independent workers when they are laid off or lack job opportunities, or when they retire but want to work part-time. GenX workers are often making the choice to become independent at the prime of their career. Even if it was not originally by choice, in the long-run there seems to be a high level of satisfaction with an independent work situation. More than half (55%) of respondents said it was their proactive choice, which does mean that for 45% it was not by choice. However, 63% said that they plan to continue as an independent solo worker, with an additional 12% planning to build their solo gig into an employer business. Once they try independent work, an overwhelming majority find that they like it.

The main draw for independent workers is perceived freedom—they feel that they have more control over their schedule and career path. While some have chosen independent work as an opportunity to earn more money, most say they are driven by passion for the work they do and contributions they make more than money. Seventy-four percent of respondents are willing to give up the ability to make the maximum amount of money in exchange for more flexibility and time.

It should be noted that one other reason cited for becoming an independent worker is that their industry is moving in that direction. Among GenY workers, 41% indicated that they were unable to find traditional employment and were forced to create independent work opportunities for themselves. This does reflect the overall trend of businesses shifting to using more contingent workers rather than full time employees. With companies striving for more flexibility as well, this is a trend that we expect to continue.

* Source: The State of Independence in America, study conducted by MBO Partners, September 2011: http://info.mbopartners.com/stateofindependence

This article may be reprinted when the copyright and author bio are included. ©2011 Kristen Harris, Portfolio Creative, LLC.