NEW YORK, June 30, 2016 /PRNewswire/ -- A new national
survey sponsored and developed by the Aspen Institute's Future of
Work Initiative, the Markle Foundation, Burson-Marsteller and TIME looks at how
companies are coping with new employment models such as the growth
of contingent and contract work and the On-Demand Economy. The
survey was conducted by research firm Penn Schoen Berland
(PSB).
According to the Workforce of the Future Survey, a
majority of all employers, 56 percent, say having a full-time
employee makes it easier to accommodate the ebbs and flows in work
volume and report that contract workers are less loyal or invested.
Conversely, employers cite using independent contractors both for
the flexibility of hiring workers with specific skills as the need
arises (90 percent), as well as for cost-saving purposes such as
taxes and benefits (86 percent). Still, when presented with the
tradeoff, most employers (58 percent) say full-time hires are
better for their company because they provide more value over the
long-term despite having to pay more up-front on taxes and
benefits.
The survey is featured now in a story on Time.com. Read the
story by TIME San Francisco Bureau Chief Katy Steinmetz here.
KEY FINDINGS:
- WHILE MOST EMPLOYERS PREFER FULL-TIME EMPLOYEES, MORE THAN
HALF ARE CURRENTLY USING INDEPENDENT CONTRACTORS AND EXPECT
THEMSELVES AND OTHERS TO USE MORE IN THE FUTURE. A majority of
all employers, 67 percent, say their company seeks to limit the
number of contingent workers in favor of full-time employees, while
60 percent report using contingent workers. Of those who use
contract labor, a majority, 57 percent, expect to use more in the
future – and 70 percent of all employers predict that more
companies and organizations will move toward a more on-demand labor
model.
- WHILE FOUR OUT OF FIVE EMPLOYERS BELIEVE PROVIDING WORKERS
WITH BENEFITS IS NECESSARY TO ATTRACT AND RETAIN TALENT A MAJORITY
OF EMPLOYERS DO NOT FEEL RESPONSIBLE FOR PROVIDING BENEFITS TO
INDEPENDENT CONTRACTORS. Seventy-nine percent of employers
believe offering benefits to employees is a critical component of
attracting talent, which tracks with the earlier On-Demand
Economy Survey (an online survey of 3,000 adult Americans by
Burson-Marsteller, The Aspen
Institute and TIME fielded by PSB from November 16-25, 2015), which showed more
than half of On-Demand Economy workers (54 percent) believe they
should receive more benefits as part of their job. At the same
time, two thirds of employers feel they should NOT be responsible
for providing benefits to independent contractors, but don't agree
on who should bear that responsibility. And 50 percent don't think
they should be responsible for providing training or education to
independent contractors. Twenty-two percent of employers believe
workers themselves should be responsible for providing benefits, 18
percent believe private companies that help workers manage/gain
benefits should be responsible, while just 9 percent say it's the
government's responsibility.
For this survey, the definition of non-employee contingent
workers is those who work for an organization on a non-permanent
basis and typically work on a form 1099, as opposed to full time,
W2- based employees of an organization. Contract or non-employee
contingent workers are also known as freelancers, independent
contractors, or temporary contract workers. They do not include
workers, part time or full time, who are issued a Form W2. Penn
Schoen Berland (PSB) conducted 800
online interviews with employers (i.e., employers or business
owners who make hiring decisions for their organization), from
June 5-16, 2016.
"More than 80 percent of surveyed employers who use contingent
workers do so because it allows them to quickly adjust to changing
workforce needs or to hire people with specific in-demand skills,"
said Markle CEO and President Zoe
Baird. "This makes it all the more important to ensure all
workers have the skills they need in today's ever changing labor
market, whether they are full-time employees or contingent workers.
A more highly skilled workforce, one that can easily find pathways
to train and retrain, is critical to enabling everyone to see
themselves in the digital economy."
"The consensus that held the 20th Century social contract
together is coming apart," said Bruce
Reed, co-chair of the Aspen Institute's Future of Work
Initiative. "While companies prefer full-time employees,
more and more are using independent contractors to reduce costs,
and two-thirds say providing those workers benefits is someone
else's responsibility. We need a 21st Century social contract
that works for everyone by making it easier for employers to share
its responsibilities in investing in workers and easier for all
Americans to take more benefits with them from job to job."
The Workforce of the Future Survey also reveals insights
regarding the On-Demand Economy, defined for respondents as an
industry that encourages consumers to share the use of goods and
services rather than own them individually. Employers are both
familiar with (71 percent) and favorable (68 percent) toward the
On-Demand Economy, with 35 percent of employers saying they will
use and provide more On-Demand Economy services in the next five
years.
"This new survey reveals we are at a critical point in the
evolution of the modern workforce," said Donald A. Baer, Worldwide Chair and CEO,
Burson-Marsteller. "We started our
research into this trend with the release of The On-Demand
Economy Survey earlier this year, and the two surveys taken
together demonstrate how the relationship between employers and
workers is changing in this new environment."
Among the survey's other findings:
- BOTH EMPLOYERS AND WORKERS SEE THE ON-DEMAND ECONOMY AS A
COMPLETELY DIFFERENT WAY OF DOING BUSINESS. Sixty-two
percent of all employers believe that the On-Demand Economy is a
completely different way of doing business and 52 percent say the
On-Demand Economy is creating more opportunities for workers by
bringing more wage-earning opportunities to more people. Similarly,
according to the earlier On Demand Economy Survey, sixty-two
percent of On-Demand Economy workers say it is a completely
different way of doing business and 57 percent say it is creating
more opportunities for workers by bringing more wage-earning
opportunities to more people.
- ALMOST ALL EMPLOYERS ARE SATISFIED WITH THE PERFORMANCE OF
CONTINGENT WORKERS. Ninety-seven percent of employers who use
independent contractors report they are satisfied with their
performance, those employers who report they will use more
independent contractors are 98 percent satisfied and even those who
say they will use fewer independent contractors report a 95 percent
satisfaction rate with these workers.
- EMPLOYERS HAVE AND WILL MOVE TOWARD MORE AUTOMATION, BUT SO
FAR LARGE EMPLOYERS HAVE LED THE WAY. Sixty-two percent of all
employers say in the last five years, "my organization has invested
in automating more tasks and functions" as compared to 77 percent
of companies with 1000+ employees. In the next five years, 68
percent of all employers "will invest in automating tasks and
functions" compared to 81 percent of companies with 1000+
employees.
- EMPLOYERS ARE LOOKING FOR LOYAL, ENGAGED EMPLOYEES AND
INDEPENDENT CONTRACTORS DON'T MEET THAT EXPECTATION.
Fifty-eight percent of employers who hire independent
contractors agree that "non-employee contingent workers are not as
loyal." Additionally, 54 percent of employers agree that
non-employee contingent workers are "not always available when I
need them;" and 52 percent agree that non-employee contingent
workers are "not as invested in their product."
- THERE IS A LARGE DISCREPANCY BETWEEN BENEFITS OFFERED TO
FULL-TIME WORKERS AND INDEPENDENT CONTRACTORS. Eighty percent
of employers who hire independent contractors offer Healthcare
benefits to full-time, W2-based employees, while only 17 percent
offer those same benefits to independent contractors. Also, 80
percent of all employers offer paid vacation to full-time W2 based
employees, while just 13 percent offer these benefits to
independent contractors.
While the survey reports clear signs indicating traditional
employment is still the most common model governing the workplace,
there are definite changes to the traditional model as a result of
emerging workplace trends, which will impact the workforce of the
future.
Methodology
From June 5-16,
2016, Penn Schoen Berland (PSB) conducted 800 online
interviews with employers (i.e. employers or business owners who
make hiring decisions for their organization). The margin of error
for the total sample is +/- 3.46% and larger for subgroups. This
survey builds off the November, 2015 On-Demand Economy Survey by
Burson-Marsteller, The Aspen
Institute and TIME which surveyed 3,000 adult Americans to
understand the size and composition of the On-Demand Economy in
the United States and to provide
insights into trends surrounding the On-Demand Economy and its
participants (both workers and users).
About The Aspen Institute and the Future of Work
Initiative
The Aspen Institute is an educational and policy
studies organization based in Washington,
DC. Its mission is to foster leadership based on enduring
values and to provide a nonpartisan venue for dealing with critical
issues. The Future of Work Initiative is a nonpartisan effort to
identify concrete ways to upgrade the social contract and propose a
more inclusive and dynamic model of capitalism in the midst of
sweeping changes in the 21st-century workplace and workforce. For
more information, visit
www.aspeninstitute.org/programs/future-of-work/
About the Markle Foundation
The Markle Foundation
works to realize the potential of information technology to address
some of the nation's most challenging issues in national security,
health care, and the economy. Markle's current initiative, Rework
America, is focused on accelerating innovations that use the forces
of technology and globalization to return opportunities to
Americans in today's rapidly changing digital economy. For more
information, visit markle.org and follow us on Twitter
@MarkleFdn.
About Burson-Marsteller
Burson-Marsteller, established in 1953, is a
leading global strategic communications and public relations firm.
It provides clients with strategic thinking and program execution
across a full range of public relations, public affairs, reputation
and crisis management, advertising and digital strategies. The
firm's seamless worldwide network consists of 73 offices and 85
affiliate offices, together operating in 110 countries across six
continents. Burson-Marsteller is a
part of Young & Rubicam Group, a subsidiary of WPP (NASDAQ:
WPPGY), the world's leader in communications services. For more
information, please visit www.burson-marsteller.com
About Time Inc.
Time Inc. (NYSE:TIME) is one of the world's leading media
companies, with a monthly global print audience of over 120 million
and worldwide digital properties that attract more than 150 million
visitors each month, including over 60 websites. Our influential
brands include People, Sports Illustrated, InStyle, Time, Real
Simple and Southern Living, as well as more than 50 diverse titles
in the United Kingdom.
About Penn Schoen Berland
Penn Schoen Berland (PSB), a member
of Young & Rubicam Group and the WPP Group, is a global
research-based consultancy specializing in messaging and
communications strategy for blue-chip corporate, political and
entertainment clients. PSB's operations include over 200
consultants and a sophisticated in-house market research
infrastructure with the capability to conduct work in more than 90
countries. The company operates offices around the world, including
in Washington D.C., New York, Seattle, Los
Angeles, Denver,
London, Hamburg, Madrid and Dubai, which are supported by in-house field
capabilities and fully equipped to provide the complete creative
solutions PSB clients need. For more information, please visit
www.psbresearch.com.
For more information, including a presentation of the survey
results, visit
www.Burson-Marsteller.com/FutureofWorkforce
Contact:
Lisa MacSpadden
The
Markle Foundation
t: 212-713-7686
e: lmacspadden@markle.org
Laura Czaja
Burson-Marsteller
t: 212-614-3954
e: laura.czaja@bm.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/short-term-benefits-of-contingent-workers-and-long-term-value-of-full-time-employees-at-odds-in-todays-economy-300292750.html
SOURCE Burson-Marsteller