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    Business colonies on the rise


     

    There is no doubt that in the workplace of 2020, free agents will feature heavily—and employers need to start thinking about how they will thrive in this market.

    The numbers already show significant increase. The Kelly Services® 2011 Free Agent Survey found that today 44% of American workers across all industries classify themselves as free agents. That’s a 70% increase since 2008 according to the research, and it means that free agents—those who do not have full-time traditional employment with an organization—account for four out of every 10 workers employed in the U.S.

    And it's not just in the U.S. where this change is occurring. Global research firm IDC predicts that as soon as 2013, there will be about 1.19 billion free agents, or about 35% of the worldwide workforce.

    It's clear now that people will seek ever more innovative ways to work and collaborate as free agents, whether that means building business colonies, being part of synchronized workforces, or forming skill-set modules.

    Companies and individuals are seeking variants on the basic employment structure to do business together more effectively—and for the most part, it's working. But why are we seeing such large increases in free agency? What's driving this fast-paced change?

    From a basic business perspective, flexible and scalable workforce resources can help companies deliver projects faster and without the added processes and the expense of on-boarding permanent, full-time employees. It is also easier than ever to engage and disengage this type of workforce because of advances in technology, which yields cost savings and greater flexibility.

    Free agency is clearly advantageous for companies, but what about the free agents themselves? What's in it for them?

    Well, free agents are also realizing that there are benefits to this work-style. Some of the most talented people are choosing the projects they want to work on because of the freedom and mobility that the free agent employment style provides.

    For the free agent, there's no more "waiting" for the next promotion. There's greater ability to choose a project based on the skill-development opportunity it provides. And, there is a recognition that even permanent positions are less secure than they used to be. Employees would once trade salary expectations, seniority or role scope for the security of a permanent role, but this is less attractive now given continued economic uncertainty.

    Many talented professionals are weighing up the pros and cons of long-term traditional employment relationships with companies differently—and will likely do this more so into the future.

    The loss of longevity and predictability in employment has changed the way employees view their workplace. A 2011 report by Careerbuilder.com found that 76% of full-time workers would leave their current job if a better opportunity came along. And, the increasing supply of flexible work projects means that more of these people are now able to find that "better opportunity" faster.

    This post belongs to a new Ebook callend No Longer a Working Experiment. You can download a free copy of it here today.


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