The New Face Of The American WorkforceThe New Face Of The American Workforce

why you’re doing workforce engagement all wrong

What We’ll Cover1. Why You’re Doing Engagement All Wrong

2. The New Face Of The American Workforce• The 5 ShiftsThe 5 Shifts• The 2 Disruptions• The 5 Key Findings

YOU’RE DOING ENGAGEMENT ALL WRONG

1. DISENGAGEMENT MEANS YOUR BUSINESS IS LOSING MONEYBUSINESS IS LOSING MONEY

Disengagement Costs Businesses $500 Billion Each Year!

YOU’RE DOING ENGAGEMENT ALL WRONG

2. PEOPLE CRAVE PURPOSE, CONNECTEDNESS & VISIONCONNECTEDNESS & VISION

More Than 50 Million Individuals Filed 1099’s Last Year

YOU’RE DOING ENGAGEMENT ALL WRONG

3. ENGAGEMENT CONNECTS PASSION WITH ACTIONPASSION WITH ACTION

70% of traditional W2 employees are disengaged from their daily workdisengaged from their daily work

93% of freelancers are committed to their & their clients’ success!

The New Face Of The American Workforce

S fThe 5 ShiftsThe 2 DisruptionsThe 2 Disruptions

The 5 Key FindingsThe 5 Key Findings

The Outsourcing Appetizer

The 5 Shifts1 The Outsourcing Appetizer

The Organization – Individual Inversion

1

2

The ICT Revolution

The Great Recession

3

4 The Great Recession

The Passion Culture

4

5

The 1st Shift

Outsourcing Whets Enterprise Appetite for External Expertise

The 1 ShiftThe Outsourcing Appetizer

• Talent Is Untethered From Geography Through Technology

• Just In Time Was Working Well for Supply Chain

On Demand

• Just-In-Time Was Working Well for Supply Chain

• Focus Shifts To Program & Process Management

Lower Overhead – Lower Cost

• Economic Differences Lower Operational Costs

• External Expertise Offloads Internal Overhead

The 2nd ShiftThe Enterprise Expertise Proxy Is Eroded By Actual Individual Experts

The 2 ShiftThe Organization – Individual Inversion

Specialized Solutions

• Institutional Knowledge

• Process & Technology Expertise

Individuals Are Requested Who Possess

Require Deep Insight

• Site & Solution Specific Insight

Elastic Expertise Becomes The Mode

• “One Throat To Choke” Models Resulted in Strangled Supply

• Direct To Expert Required More Responsibility

• Direct To Expert Delivers Better, Faster Results

Which Takes Time To Develop

That Companies Will Pay For Only

Once

The 3rd Shift

Communication & Collaboration Technology Brings Expertise Into The Room

The 3 ShiftThe Evolution Of ICT

• SOCIAL – powers individual expertise location

SO – MO - LO

• MOBILE – powers solution acceleration & expert ubiquity

• LOCAL – powers rapid consummation & community

LAST MILE EXECUTION

• Where offshore & electronic deliverables break down

• Rediscovery Of The Human Element At Point Of Delivery

The 4th Shift

A Perfect Storm Of Trends To Spur The Freelance Economy

The 4 ShiftThe Great Recession

TRENDS CONVERGE

• ECONOMIC – Boomers & Millennials Alike Turn to Freelancing

l d i b k l

SHORTER TERM PROJECTS

• ON DEMAND – cloud computing, Obamacare, consumer marketplaces

• DISENGAGEMENT – dissatisfaction grows as options emerge

• Projects & PMOs Go LEAN

• Project Lifecycle Shift Drive Up Reliance on Short-Term Contractors

The 5th Shift

Do What You Love Drives The Hunt For New Opportunity

The 5 ShiftPassion Culture

• WORK – already more than a place we go due to always on technology

• BLURRED BORDERS – between work & life due to shifting expectations

IF WORK IS YOUR IDENTY, YOU HAD BETTER LOVE WHO YOU ARE

BLURRED BORDERS between work & life due to shifting expectations

CONSPICUOUS SUCCESS OF PASSION COMPANIES

• Millennials enjoy massive success “doing what they love”

• Ideas are imbued with a new potential energy

• Ideas soak up capital fleeing traditional, recession afflicted, investment areas.

• Social proof and funding via kickstarters, angels & VCs become popular

The 2 DisruptionsThe Disengagement Disruption

The 2 Disruptions1

The Freelancer Disruption2

Dissatisfaction Grows Among Traditional W2 EmployeesDissatisfaction Grows Among Traditional W2 Employees

The Disengagement DisruptionDissatisfaction Grows Among Traditional W2 EmployeesAwareness of the squeeze their companies are putting on them due to the recession & increasing visibility of conspicuous success by passion-based entrepreneurs feeds growing dissatisfaction.

Dissatisfaction Grows Among Traditional W2 EmployeesAwareness of the squeeze their companies are putting on them due to the recession & increasing visibility of conspicuous success by passion-based entrepreneurs feeds growing dissatisfaction.

Loss of Visibility Of PurposeLoss of Visibility Of Purpose

01cause

01cause

01cause

Loss of Visibility Of PurposeEmployee visibility of purpose is comprised of 3 elements:1. A thriving relationship with the immediate supervisor2. Belief in senior leadership3. Pride in working for the company.Loss of these sets employees adrift and spurs disengagement

Loss of Visibility Of PurposeEmployee visibility of purpose is comprised of 3 elements:1. A thriving relationship with the immediate supervisor2. Belief in senior leadership3. Pride in working for the company.Loss of these sets employees adrift and spurs disengagement

02cause

02cause

02cause

Erosion of Connectedness At WorkCulture abhors a vacuum. With increasingly fractured teams and absent an intentional focus on connectedness, belief in Sr. leadership erodes which causes satisfaction and engagement to plummet.

Erosion of Connectedness At WorkCulture abhors a vacuum. With increasingly fractured teams and absent an intentional focus on connectedness, belief in Sr. leadership erodes which causes satisfaction and engagement to plummet.

03cause

03cause

03cause

pp

Gallup’s Global Disengagement FindingsDisengagement is a global problem• 87% Global Disengagement• 70% U.S. Disengagement

Gallup’s Global Disengagement FindingsDisengagement is a global problem• 87% Global Disengagement• 70% U.S. Disengagement

04cause

04cause

04cause70% U.S. Disengagement

• $450 – 550 Billion in losses in the U.S.70% U.S. Disengagement

• $450 – 550 Billion in losses in the U.S.

HELLO BUSINESS?

THIS IS YOUR WAKEUP CALL

one sector consistently outperforms others on engagement…

Image via Flickr User Claire Sutton

The Freelancer Disruption

34%• 53 million freelancers in the U.S.

• Increasing spending on contractors

2014

and freelance

• 18% of total workforce – 20% in 2

years. (SIA)

• Technology allows direct engagement 36% of Businesses Plan towith experts anywhere the work

requires.

36% of Businesses Plan to increase spending on contingent workers in 2015

40%• 60 million + freelancers 2020

contingent workers in 2015 (up from 24% in 2014)-TEKsystems nov 6, 2014

The 5 Findings1 Opt-In Freelancing1

2

p g

Regular Income

3

4

Entrepreneurs & Owners

Committed to Success4

5 Overwhelmingly Satisfied

Methodology

“Field Nation Provider Engagement Study”

Conducted Fall 2014

N=847

Modelled On Gallup Employee Engagement Survey

Measured self typing, engagement and satisfaction with freelancing

Correlated engagement factors such as autonomy competence and relatedness to responsesCorrelated engagement factors such as autonomy, competence and relatedness to responses

All responses were anonymous

Finding 1Freelance Contractors Who Selected The Lifestyle

vs Those Who Felt They Had No Other Options g

Freelancers Chose Freelancing

88SIGNAL:

• Strong Autonomy

88%Strong Autonomy

• Strong Sense Of Purpose

Opted In Forced In

Finding 2Contracting Income gFreelancing Provides An Important &

Regular Income Stream

96%OUTER RING:

• 96% Contracting / Freelancing is Regular Income96% INNER RING:

• 73% Contracting / Freelancing is Primary Income

SIGNAL:

• Strong Competence

• Strong Engagement

Finding 3How Freelancers See Themselves gIndependents See Themselves As

Entrepreneurs

52%THE MAJORITY

• 52% Consider Themselves Entrepreneurs & Small

Business OwnersBusiness Owners

THE MINORITY

• 45% See Themselves As Independent Contractors45%SIGNAL:

% p

THE EXCEPTION

• 3% View Themselves As Temporary Help

• Strong Competence

• Strong Autonomy

Finding 4Success Focus For Customers & Self gCommitment To Success

93%OUTER RING:

• 93% Committed to the Success of the Customer93% INNER RING:

• 90% Committed to the Success of Their Business

SIGNAL:

• Strong Relatedness

Finding 5Daily & Overall Satisfaction gSatisfaction

97%OUTER RING:

• 97% Satisfied Day-to-Day97% • Of Those, 63% Replied “I love what I do.”

INNER RING:

SIGNAL:

• Strong Engagement

• 95% Satisfied Overall with Their Freelance Career

Strong Engagement

The Conclusion

1 Opt-In Freelancing: Autonomy1

2

p g y

Regular Income: Competence

3

4

Entrepreneurs & Owners: Relatedness

Committed to Success: Competence4

5 Overwhelmingly Satisfied: Engagement

The Shifts The Disruptions The Findings

The Outsourcing Appetizer

p g

11 The Disengagement Dilemma Opt-In Freelancing1 The Outsourcing Appetizer

The Organization – Individual Inversion

1

2

1

2

The Disengagement Dilemma

Freelance Disrupts Fulltime

p g

Regular Income

1

2

The ICT Revolution

The Great Recession

3

4

Entrepreneurs & Owners

Committed to Success

3

4

The Passion Culture

4

5 Overwhelmingly Satisfied

4

5

We Are Breaking The Barriers To Work

We Are Helping YouWe Are Helping YouGet Work. Done.Get Work. Done.

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