the growth of freelancing

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The growth of freelancing/contracting, its causes, its consequences and the impact on government and wider society

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  • THE RETURN OF THE FREELANCER

    IN THE ECONOMY

    J.A. van den Born

  • THE FREELANCER IS OLDER THAN THE WAY TO ROME

  • IN THE MIDDLE AGES ENTREPRENEURS STARTED ORGANIZING THEMSELVES IN GUILDS

    TO ENSURE QUALITY CONTROL, INNOVATION AND EDUCATION

  • BUT IN THE 16TH CENTURY ECONOMIES OF SCALE

    STARTED TO KICK IN

    LEADING TO LESS SELF-EMPLOYMENT

  • WITH INDUSTRIALISATION MOST PEOPLE LOST THEIR CRAFT AND THEIR SKILLS

    AND POWER WENT TO THE CAPITALIST

  • LABORERS STARTED UNIONS IN THE

    BEGINNING OF THE 20TH CENTURY

  • ECONOMIES OF SCALE LED TO THE ARRIVAL OF THE MODERN ORGANIZATION

  • NEW COMPLEX ORGANIZATIONAL STRUCTURES EMERGED

  • AND FREELANCERS AND OTHER SELF EMPLOYED PROFESSIONALS SLOWLY DISAPPEARED IN THE ECONOMY

  • SINCE THE EARLY 90S THE NUMBER OF

    FREELANCERS IS GROWING AGAIN (AND FAST)

  • BECAUSE OF TECHNOLOGY THE FREELANCER

    DISAPPEARED, AND BECAUSE OF

    TECHNOLOGY THE FREELANCER WILL

    REEMERGE

  • INTERNET AND MODERN COMMUNICATION

    TECHNOLOGY HAVE FACILITATED THE SEARCHING

    AND FINDING OF THE RIGHT PROFESSIONAL SKILLS

  • THIS ALL HAPPENED IN THE LAST 20

    YEARS

  • AND THE ARRIVAL OF E-COMMUNITIES IS

    JUST STARTING TO HAPPEN

  • THE ARRIVAL OF STANDARDTECHNOLOGIES

    MAKES IT EASIER TO SWITCH BETWEEN

    EMPLOYERS

  • TECHNOLOGY IS CHANGING THE VERY HEART OF THE ECONOMY

    NEW PROFESSIONS EMERGE IN WHICH INNOVATION AND

    CREATIVITY ARE KEY

  • BUT WORK IS PERFORMED BY TEMPORARY TEAMS

    WORKING TOGETHER IN PROJECTS

  • ... THE PROFESSIONAL IS BECOMING MORE

    IMPORTANT THAN THE MANAGER

    BECAUSE PERSONAL KNOWLEDGE IS RAPIDLY

    BECOMING THE SOURCE OF COMPETITIVE ADVANTAGE

  • AND ORGANIZATIONS ARE BECOMING SMALLER AGAIN

    BECAUSE OF THE LACK OF ECONOMIES OF SCALE IN THE

    KNOWLEDGE BASED SERVICE ECONOMY

  • FREELANCERS ARE HAPPIER THAN

    EMPLOYEES

  • AND THE ECONOMY BENEFITS FROM MORE INNOVATION

  • MORE AGILE AND FLEXIBLE

  • THE VARIETY OF ALL THOSE SMALL

    ENTREPRENEURS

  • IS ALSO MUCH MORE INTERRESTING THAN ALL THOSE

    LARGE CORPORATIONS

  • AS INDIVIDUAL PERFORMANCE IS THE ULTIMATE YARDSTICK IN

    THE KNOWLEDGE ECONOMY

    WHETHER YOU ARE AN FREELANCER OR AN EMPLOYEE

  • AND BECAUSE EMPLOYERS ARE SWITCHING FROM OLD

    HIERARCHICAL STRUCTURES...

  • ...THE DIFFERENCE BETWEEN EMPLOYERS AND

    FREELANCERS IS ALSO DISAPPEARING

    ...TO NEW AND FLEXIBLE NETWORK STRUCTURES...

  • LEADING TO ONE UNIFIED NETWORKECONOMY

    WITH PLENTY OF LOOSE CONNECTIONS BETWEEN ACTORS WHO

    COOPERATE ON A PROJECT BY PROJECT BASIS

  • AND EVERYONE IN THIS NETWORK IS AN

    ENTREPRENEUR

  • BUT IS THIS AN IDYLLIC WORLD?

  • FREELANCERS HAVE MORE STRESS

  • THE AVERAGE INCOME OF FREELANCERS IS LOWER THAN

    THAT OF EMPLOYEES

  • MANY FREELANCERS ARE NOT INSURED

    AND BARELY SAVE FOR RETIREMENT

  • AND THE FREE MARKET IS NOT ALWAYS THE OPTIMAL

    SOLUTION

  • MANAGERS STILL MAKE MORE MONEY THAN

    PROFESSIONALS

  • HOW CAN THIS ALL BE TRUE?

  • THE FREELANCER HAS TO MAKE IMPORTANT DECISIONS

    IN A COMPLEX WORLD

  • MARKETS WITH PLENTY OF SUPPLY AND LITTLE DEMAND

    ARE NOT HEALTHY

    AND PROFESSIONAL FEES IN THESE MARKETS ARE VERY LOW

  • IN SOME MARKETS THERE IS ONE LARGE PLAYER

    WHICH LEADS TO MONOPOLY ABUSE

  • INDIVIDUALS WITH LIMITED SKILLS WILL FIND IT HARD

    TO EARN A LIVING

  • SOME FREELANCERS ARE ONLY INTERESTED IN

    EARNING FAST MONEY

  • CAPITAL REMAINS AN IMPORTANT

    PRODUCTION FACTOR

  • THE WORLD IS BECOMING LESS STRAITFORWARD

  • THE KNOWLEDGE ECONOMY NEEDS SPACE

  • AND VULNARABLE GROUPS NEED PROTECTION

  • THESE ARE NOT

    CONFLICTING

    GOALS

  • BECAUSE KNOWLEDGE CREATION NEEDS COOPERATION

  • AND A SENSE OF TRUST AND MUTUAL

    UNDERSTANDING

  • PARADOX: IN THE KNOWLEDGE ECONOMY

    INDIVIDUALS NEED TO OPERATE TOGETHER

  • DO NOT JUDGE THE KNOWLEDGE ECONOMY ON THE

    NUMBER OF LARGE COMPANIES

    ...BUT ON THE SIZE AND INNOVATION POWER OF NETWORKS

  • FOSTER

    DIVERSITY,

    INNOVATION &

    CREATIVITY

  • INVEST IN KNOWLEDGE