1099 workforce report preview

Requests for Startups © 2015 All rights reserved ● RFS 1099 Economy Report ● Table of contents ● www.requestsforstartups.com

The 20151099 Economy

Workforce Report

Requests For Startups

Requests for Startups © 2015 All rights reserved ● RFS 1099 Economy Report ● www.requestsforstartups.com

Published on May 20, 2015

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http://www.requestsforstartups.com/



Pay and lack of enjoyment leading reasons for attritionHowever, pay was the leading reason for a respondent to leave a 1099 job. Also notable is that lack of enjoyment was the 2nd most attributed reason.

Q. Why did you choose to leave the companies you no longer work for? (N = 771)

Key Findings: Cash is King for Sustainability

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Many are also working without insurance

N = 404

N = 397

A surprising 8% of ridesharing worker respondents and 16% of delivery worker respondents that drive for their jobs reported not having car insurance. More than a quarter of these workers, including those who do not drive, also reported not having health insurance.

Key Findings: Delivery Drivers Have Fewer Options

Q. For the following insurance products, choose what best describes / your current situation? (N = 435)

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Grow earnings and tax/legal are key pain pointsKey Findings: Needs and Opportunities

One way to gauge the needs of freelancers is to look at the respondents’ most common pain points.

Q. What are the biggest pain points you face in your work as an / independent contractor? (N = 910)

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Hourly WageHow much do you typically earn per hour as an independent contractor?

Earnings and Spending

18

25

15

19

25

N = 1089

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Car-Related ExpensesHow much do you estimate you spend on car-related expenses in the typical month for your independent contractor work?Ridesharing drivers spending on average $965 per month on car-related expenses, while delivery drivers spend $374.

Earnings and Spending

N = 1011

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Longevity in Industry

7

How much longer do you see yourself working as an independent contractor?

Work Life and Sustainability

N = 954

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Perks and BenefitsRank benefits in terms of desirability, with most desired being on TOP (1), least desired being on BOTTOM (9).

Needs and Desires

N = 940

3.15 | Health insurance

3.78 | Retirement benefits

3.79 | Paid sick, holiday, and vacation days

3.91 | Opportunities for advancement

5.40 | Sponsorship for further education

5.80 | Disability insurance

5.91 | HR support services

6.36 | Social interaction with coworkers

6.90 | Company-sponsored events

Mean rank (1- 9) Benefit|

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The OperatorsInterviews

What does the future of work look like?

“Labor is following the path of cloud-computing. This is in the sense that a couple decades ago, when you started a business you had to buy your own servers and set them up, whereas now you just outsource it to Amazon at a very low cost. We predict a similar trend in labor, where it will become decentralized and liquid. Intuit reports that by 2020, 40% of the American workforce will be independent workers. As it becomes easier and cheaper to find talent, companies will rely less on full-time employees and will hire on a task/project basis.”– Keith Ryu, CEO of OnboardIQ

“The future of work is way more dynamic and flexible than what we are used to today. People will educate and train themselves mostly online and be able to change careers multiple times during their lives. High skill jobs like doctors, engineers, designers will become more and more decentralized in the same way service jobs are changing with on-demand marketplaces. APIs will continue to replace middle management and you will have more and more software companies with engineers automating most of the clerical/administrative jobs.”– Daniel Yanisse, CEO of Checkr

“The days of punching a clock are over. The future of work will allow people to work when they want, how much they want, and for them to be recognized through automated reputations systems for the quality of the work they perform. This will enable entirely new lifestyles for people who are interested in pursuing things that require a less rigid schedule. This change in the relationship between worker and company will allow workers to pursue passions otherwise unattainable due to schedule or location restrictions.”– Cameron Doody, Co-Founder of Bellhops

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“With how fast this type of workforce has grown in our economy over the past few years, there's an information gap in how the independent workforce is structured, thinking and changing due to the lack of publicly available longitudinal data. Regulatory change will be extremely impactful in this space only if it has the right data to understand true cost of living and incentives needed. Until then, many on-demand business models that utilize independent workers may be running businesses that won't work from a unit economics perspective post-regulation.”– Joanne Yuan, Cowboy Ventures

The InvestorsInterviews

What does the future of the on-demand workforce look like?

“The on-demand workforce has grown rapidly in the last five years and this growth is not expected to slow down. In fact, some studies predict that 40% of the US workforce will be part of the on-demand workforce by 2020. Since practically one out of two US workers will be part of the on-demand economy, we expect it to be far more regulated and streamlined.

First the government will become more involved and eventually set clear guidelines for classifying the workers and determining their benefits. Second, the employers themselves will need to reconsider HR practices for these workers. They cannot use the same playbook they use for their employees. Some of the questions they need to address include: how do recruit, how to retain, how much to train them, what type of compensation and benefits, how much integration into the company culture, etc. Finally, the worker today should also see a growth in terms of the services that allow him to become part of the on-demand economy. We expect there to be hiring platforms, insurance services, loan services, and others.”– Mar Hershenson, Pejman Mar Ventures

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