Contractor Class Workforce on the Rise

According to a June 2015 article by TechCrunch, a growing class of independent workers in the U.S. is increasing. Hiring independent workers is now a growing trend in the “1099 Economy,” that is made up of an on-demand independent workforce, which caters to a wide range of services from legal to public relations.

Although this trend isn’t a new phenomenon, we continue to benefit from the 1099 workforce. Companies such as Uber and OrderUp, an innovative food delivery service providing San Diegans with quality food through its mobile web app, have been reaping the substantial benefits of utilizing independent workers for its business.

The current employment sector is growing to favor independent workers in the workspace. Disruptive innovation, creating a new market and value network, will eventually change the dynamic of the typical nine-to-five job. Could full-time employees soon be replaced by contractors that can be hired with the click of a button?

According to the article more than 40 percent of the workforce in 2020 will be made up of independent workers. This wave of independent workers are also changing how they do work. Many freelancers choose to join coworking spaces such as Hera Hub to get their work done and collaborate with other like-minded, driven individuals.

Coworking spaces allow contractors to thrive in the fast-paced environment they are used to working in. According to a January 2015 article by the Huffington Post 90 percent of individuals felt more confident working at a coworking space.

The on-demand economy of independent workers looks for flexibility and independence to work on multiple projects that are not tied down to one specific industry. It’s not surprising that freelancing is attracting the millennial workforce as they choose to venture in entrepreneurship and working from home.

Hiring independent workers allows businesses to focus on specific projects when hiring contractors and work more efficiently to get the job done. For example, platforms such as Upwork , an online platform where you can hire and work as a freelancer, are also taking the world by storm enabling companies and businesses to meet professionals who can focus on delivering quality services within given deadlines. A knowledge-based workforce allows individuals to be hired by skill almost as “talent assemblers” as the article mentions.

This realization that workers can feel empowered through freelancing is motivating and dynamic for the business industry. Project-based work has the potential to lead to more innovation across every industry.
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Felena Hanson is a long-time entrepreneur and marketing maven. Her latest venture, Hera Hub, is a spa-inspired shared workspace and community for female entrepreneurs who need a productive, professional place to work on a flexible basis. She has three locations in San Diego County and is expanding nationally via a franchise model, starting with the launch of the first Hera Hub franchise in Washington D.C. in Spring 2015.