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03 December, 2012

Age of the Freelancer

Gary Stern writing last week for Fortune Magazine talked about the Age of the Freelancer. As he notes this is not a new phenomena, but it is seeing a resurgence of late. In September a survey taken of over 300 freelance workers found that 57% saw an increase in income during 2012.

I have talked about the changing landscape of work in past posts. As Mr. Stern points out this is not a new trend. What it signals is the end of the traditional career of staying put for 30+ years. The benefits for the employer are just too great for them to continue to hire primarily full time salaried employees and remain competitive globally.

I see this as a sad trend, but one that may be impossible to avoid. My greatest concern is that even if employers raise salaries enough to equate to what a worker was receiving in salary and benefits in the past (health, disability, retirement, etc.) will employees remain disciplined enough to go out into the free market and invest those extra dollars wisely? For most the health coverage will remain essential and as the nation settles into life with the Affordable Care Act it should become easier and more affordable to purchase this coverage as an individual. The bigger concern will be retirement. Currently the trend that is seeing modest positive gains is to automatically enroll an employee into a 401K or similar plan offered through the employer.

As Social Security and Medicare begin to loose footing, and more workers are not seeing these benefits from employers will we be self-disciplined enough? I hope for the best and fear for the worst.

Thoughts?

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