Currently representing 1 million of Australia’s labour force, Independent Contractors, referred to as Independent Professionals (IPros) by Entity Solutions, is a growing sector of the country’s workforce.
To date, virtually no research has been conducted about IPros, in Australia and around the world. Management practice and expectations of work seem to remain firmly entrenched in traditional notions of standard employment.
Considering the above, a need has been identified by Entity Solutions: to establish and enhance our understanding of contracting experiences, issues and wellbeing from the IPros’ perspective. The outcome of this research is expected to provide valuable insights to the market and to highlight to organisations, how to best engage and work with this important and growing demographic.
As a result, Entity Solutions and Monash University have joined forces to develop a leading benchmark survey for identifying the trends, issues and attitudes of IPros in Australia. This landmark IPro Index will provide great insights into the professional contracting market and the journey that IPros are embarking on now and into the future.
Here are some highlights of the IPro Index 2009:
Section 1: Lifestyle
Key drivers behind IPros’ choice to engage in professional contracting work are sense of freedom, variety of work and perceived ability to earn more.
In contrast, a majority of IPros feel that being laid off, the fear of job loss, difficulty in finding permanent work and a tight labour market play “no role” in them choosing to engage in professional contracting work.
Highlights:
- 76% feel that “variety of work” plays “some role” and “major role” in them engaging in professional contracting work
- 75% feel that “perceived ability to earn more” plays “some role” and “major role” in them engaging in professional contracting work
Evidence of the positive lure contracting has for many continues, when the study participants were asked to rate their satisfaction with working as an IPro. Overall, IPros enjoy a high level of job satisfaction in relation to professional contracting work.
Highlights:
- 80% “slightly agree” to “strongly agree” that generally speaking, they are very satisfied with working as an IPro
- 87% “slightly agree” to “strongly agree” that they are generally satisfied with the kind of work they do as an IPro
- Only 21% “slightly agree” to “strongly agree” that they frequently think of quitting being an IPro.
Section 2: Wellbeing
The IPro Index looks at wellbeing from two perspectives. The first stems from the area of positive psychology and focuses on work engagement.
Highlights:
- 91% rated “often” to “always” proud of the work that they do
- 89% rated “often” to “always” feel happy when they are working intensely
The second perspective of wellbeing that the IPro Index looks at relates to the notion of self-efficacy or quite simply - the extent to which IPros feel competent to fulfil the requirements of their job.
Highlights:
- 88% rated “mostly true” and “completely true” that they can usually handle whatever comes their way
- 88% rated “mostly true” and “completely true” that past experiences in their jobs have prepared them well for their occupational future
Section 3: Commitment to current client
Much has been written about the need to gain commitment to the organisation from permanent employees. It is a need which becomes strangely vexed when the workforce involved are IPros. Given the well established link between individual wellbeing and organisational performance, it is an area we believe is worth investigating. Overall, IPros feel that their current client values their contribution and cares about them.
Highlights:
- 1 in 2 IPros rated “slightly agree” to “strongly agree” that they would be very happy to spend the rest of their career working for their current client organisation
- 1 in 2 IPros rated “slightly agree” to “strongly agree” that they really feel as if their current client organisations’ problems are their own
Section 4: Perceived support from current client
Apart from investigating IPros’ commitment to organisations, the IPro Index goes one step further in asking IPros about the reciprocal nature of the relationship – in other words, how committed they feel their client organisation were to them. IPros generally feel that their client organisation values their contributions and cares about their wellbeing.
Highlights:
- 72% “slightly agree” to “strongly agree” that their client organisation cares about their opinions
- 72% “slightly agree” to “strongly agree” that their client organisation has help available when they have a problem
The IPro Index provides further confirmation of these positive findings with a second dimension to the notion of IPro perceptions of the relationship.
Highlight:
- 78% “agree” and “strongly agree” that their client organisation has kept their promises
Section 5: Trends
The last item of the IPro Index looks at the trends within IPro employment. Study participants were asked two very simple questions. In providing an ‘opportunity’ measure, the questions combine both a subjective estimation of existing labour market vacancies, as well as their personal chance of finding alternative work.
Highlights:
- 57% of IPros thought finding work in their current geographical area as good as the one they had now, would be “somewhat easy” to “very easy”
However, this optimism is balanced against:
- 59% of IPros admitting that finding better work would be “quite difficult” to “very difficult”
The “special trend”
The special trend examined in detail in the IPro Index 2009 is the issue of the Global Financial Crisis (GFC).
While the general impact on employment is well known and has been a feature of the popular press for some months, the impact of the GFC on the IPro workforce has often been reported in both positive and negative terms with very little evidence offered for either view. There has been some negative impact but the key component of this is due to “adjusting expectations”.
Highlights:
- 46% reported the major impact as having to be more flexible in their earnings expectations
- 38% reported increased competition for work
- Only 24% reported a cut in pay rates
In conclusion…
Overall, IPros:
- are generally satisfied working as an IPro;
- are enthusiastic and inspired by their work;
- feel a sense of attachment to their current client organisation;
- generally agree that their current client organisation values and cares about them;
- believe it would be somewhat easy for them to find similar or better IPro work with another client organisation; and
- are a sustainable workforce in Australia.
To download a full IPro Index 2009, go to http://www.entitysolutions.com.au/entitysolutions/resourcecentre/