freelancing in australia: 2015
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- 1. Copyright 2015 Daniel J Edelman Inc.1 Intelligent Engagement Freelancing in Australia: 2015 Results Deck October 27, 2015
- 2. Copyright 2015 Daniel J Edelman Inc. Intelligent Engagement 2 An online survey of 1,000 Australian adults who have done paid work in the past 12 months Data collected August 17 August 23, 2015 by independent research firm Edelman Berland 2014 data referenced in this presentation is from Edelman Berlands July 19 July 31, 2014 survey Results are weighted to ensure demographic representation in line with the Australian Bureau of Statistics Labour Force Survey Overall margin of error of 3.1% at the 95% level of confidence Research methodology
- 3. Copyright 2015 Daniel J Edelman Inc. Intelligent Engagement 3 Audiences NON-FREELANCERS Definition: - Individuals who earned income through work but have not engaged in supplemental, temporary, project- or contract-based work, within the past 12 months. Sample n = 676 FREELANCERS Definition: - Individuals who have engaged in supplemental, temporary, project- or contract-based work, within the past 12 months. Sample n = 324 AUS WORKERS OVERALL Definition: - AUS adults 18+ who have earned income from work within the past 12 months, including both freelancers and non-freelancers. Sample n = 1,000
- 4. Copyright 2015 Daniel J Edelman Inc. Intelligent Engagement 4 Upwork commissioned Edelman Berland, an independent research firm, to conduct a study of the freelance workforce within Australia with the following objectives: 1. Quantify the number of people freelancing in Australia for the second year in a row 2. Assess why people are freelancing 3. Explore the impact of investments in digital infrastructure on the economy 4. Gauge the outlook for freelancing, especially among Millennials as they become the majority of our workforce This results deck is organized in sections to detail results on each of these objectives. Study objectives
- 5. Copyright 2015 Daniel J Edelman Inc. Intelligent Engagement 5 1. Quantify the number of people freelancing in Australia for the second year in a row The percent of the Australian workforce freelancing increased by 2 percentage points since 2014, from 30% in 2014 to 32% now. Based on the Australian Bureau of Statistics August 2015 estimate of the civilian labor force at 12.5 million, that equates to nearly 4.1 million people 370,000 more people who have done freelance work than last year. 2. Assess why people are freelancing Australians are freelancing by choice 57% said they started more by choice primarily driven by flexibility and freedom. The majority (51%) of freelancers who left traditional employment now earn more and 69% indicated they earned more within a year or less. Technology is making it easier to find freelance work (68% of freelancers agree, compared to 59% in 2014). 58% of freelancers say they would not quit freelancing and take a traditional job with an employer -- no matter how much it paid. Key findings (by objective)
- 6. Copyright 2015 Daniel J Edelman Inc. Intelligent Engagement 6 Key findings (by objective) 3. Explore the impact of investments in digital infrastructure on the economy Nearly two-thirds of freelancers (65%) report that investment in Australias digital infrastructure will grow the economy. More than 3 in 4 freelancers (77%) believe that increased opportunities for freelancers are a positive step for the economy and 62% think we need more open discussion about freelancing. 4. Gauge the outlook for freelancing 72% of freelancers believe the best days are ahead for freelancing. Among all freelancers, nearly 3 in 4 (73%) would recommend freelancing to their friends and family with Millennials even more favorable at 75%. More than 3 in 4 (79%) non-freelancers said they are open to doing additional work outside their primary jobs to earn more money, if it were available.
- 7. Copyright 2015 Daniel J Edelman Inc. Intelligent Engagement 7 Quantifying the Freelance Workforce
- 8. Copyright 2015 Daniel J Edelman Inc. 8 Our survey of over 1,000 Australian workforce members rigorously screened respondents to determine the percent who earned freelance income in the past year. Results showed that 32% of the Australian workforce is doing freelance activity up from 30% in 2014. Based on the Australian Bureau of Statistics August 2015 estimate of the civilian labor force at 12.5 million, we estimate that the Australian workforce currently includes nearly 4.1 million people doing freelance work. This is an increase of 370,000 freelancers since our 2014 survey. The percent of the Australian workforce freelancing increased to 32% in 2015. Nearly 4.1M Australians are now freelancing "THE EMPLOYMENT SITUATION - JULY 2015." Bureau of Labor Statistics - U.S. Department of Labor, 7 Aug. 2015, http://www.bls.gov/news.release/pdf/empsit.pdf.
- 9. Copyright 2015 Daniel J Edelman Inc. 9 Starting with the general Australian workforce, each respondent ran through a series of questions that carefully qualified their employment status and income in order to detect freelancing that might otherwise go unrecorded. The following definitions and examples explain 5 segments of freelancers captured: 1. Independent Contractors (30% of the independent workforce / 1.2 million professionals) These traditional freelancers don't have an employer and instead do freelance, temporary, or supplemental work on a project-to-project basis. 2. Moonlighters (19% / 764 thousand) Professionals with a primary, traditional job who also moonlight doing freelance work. For example, a corporate-employed web developer who does projects for non-profits in the evening. 3. Distributed Workers (31% / 1.3 million) People with multiple sources of income from a mix of traditional employers and freelance work. For example, someone who works the front desk at a dentists office 20 hours a week and fills out the rest of his income driving for Uber and doing freelance writing. 4. Temporary Workers (16% / 639 thousand) Individuals with a single employer, client, job, or contract project where their employment status is temporary. For example, a data entry worker employed by a staffing agency and working on a three-month assignment. 5. Freelance Business Owners (4% / 163 thousand) These freelancers have one or more employees and consider themselves both a freelancer and a business owner. For example, a social marketing guru who hires a team of other social marketers to build a small agency, but still identifies as a freelancer. In order to qualify, freelancers had to have earned freelance income within the past 12 months. How did we quantify freelancers?
- 10. Copyright 2015 Daniel J Edelman Inc. 10 4% 16% 19% 30% 31% 639K Moonlighters Distributed Workers Temporary Workers Freelance Business Owners Independent Contractors S102New: Behind the scenes-Freelancer Specific Classification-Tracking n = 324 163K 764K 1.2M 1.3MGrowth in freelancing since 2014 was most notable in the Distributed Workers segment (from 23% of freelancers in 2014 to 31% now) The freelance workforce: 5 freelancer segments
- 11. Copyright 2015 Daniel J Edelman Inc. Intelligent Engagement 11 Why People are Freelancing: Going Solo vs. Traditional Employment
- 12. Copyright 2015 Daniel J Edelman Inc. 12 The majority of freelancers are starting by choice Choice 57% Necessity 43% Which is closer to the reason you originally started freelancing? Q48. Which is closer to the reason you originally started freelancing? n = 324 Q53. What do you think is different about the freelance job market today compared to 3 years ago? More people are choosing to work independently [Strongly + Somewhat Agree] n = 324 63%of freelancers agree that more people are choosing to work independently today compared to 3 years ago
- 13. Copyright 2015 Daniel J Edelman Inc. 13 60% 49% 65% 40% 51% 35% 18-34 35-54 55+ Reason for Freelancing - by Age [Freelancers] Choice Necessity The youngest and oldest generations are most likely to start freelancing by choice Q48. Which is closer to the reason you originally started freelancing? n = 324 * Small base size (n=54). Results should be considered directional only. *
- 14. Copyright 2015 Daniel J Edelman Inc. 14 Flexibility and freedom are key drivers for freelancing Q35b. Please indicate the degree to which each of the following is a reason why you freelance? (Top 2 Box) n = 94 full-time, n=163 part- time. Note - small base size for full-time freelancers. Results should be considered directional only. 76% 75% 74% 72% 68% 50% 51% 57% 52% 52% To work from the location of my choosing To have independence from things such as office dynamics To have flexibility in my schedule (i.e. what days or times I work) To be in control of my own financial future To be able to choose my own projects Top 5 Reasons for Freelancing Full-time freelancers Part-time freelancers
- 15. Copyright 2015 Daniel J Edelman Inc. 15 Schedule flexibility and good work/life balance are top characteristics freelancers associate with freelancing Q23: In your opinion, how well does freelancing fit each of these characteristics?(Top 2 Box) n = 324 78% 74% 73% 73% 72% 72% 72% Flexibility to work when I want Good balance (between my work and personal life) Opportunities to learn new things (challenging) Allows control of my own destiny Ability to work on interesting projects Flexibility to work where I want Provides the opportunity to pursue work I am passionate about or find meaningful Top Descriptors of Freelancing Freelancers
- 16. Copyright 2015 Daniel J Edelman Inc. 16 Why do Australians freelance? In their own words Q35a: Other than to earn money, why do you freelance? [Open End] n = 324 Freedom, love of doing what I do. To meet different people and to have more freedom and satisfaction. F
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