The Top 9 Workforce Terms You Need to Know
Learning the language of the gig economy, agile and contingent workforce helps us navigate our careers.
Over the last 10 years, the work world has been highly impacted by new workforce trends that have changed the way we work. These trends have shaped the language of the work world by giving us new terminology that reflects how employers are hiring and managing their workforce, and also describes how we are choosing to work. In order to effectively navigate your career, being well versed in terminology is necessary as you plan your next moves or search for new opportunities.
To help you get started, here are the top 7 terms you need to know and why.
Let's start with agile workforce.
Today, an agile workforce is a talent pool that is nimble, flexible and responsive in a globally competitive market or in uncertain economic climates. It mixes full-time, part-time and independent workers, giving employers the opportunity to better respond to both customer demands and the next generation of workers who desire flexibility and lifestyle-driven work lives.
Additionally, an agile employer is a goal driven company that values collaboration, adapting to change, and trusting it's flexible workers. Pre-pandemic, employers were beginning to shift to an agile workforce. Post pandemic, after surviving one of the biggest disruptions of our time, employers realize the importance of being responsive to change and disruption. In a recent Randstad 2021 Talent Trends, 77% of employers said they planned to create more workforce agility. Workers who understand the agile mindset of employers will be better able to adapt and respond to employer needs.
Let's talk independent workforce.
An independent workforce is nothing new. For years, employers have hired an independent workforce of on-demand labour such as contractors, consultants, or freelancers. However, what has changed is the accelerated global growth of the independent workforce among highly skilled workers as companies learn how to respond to demands, disruption and competition through the use of technology.
Pre-pandemic, it was estimated by employer's in Randstad's Workforce 2025 report, that by 2025, 35% of the Canadian workforce would be made up of independent workers. In 2016, McKinsey Global Institute published one of the most comprehensive reports on the impact of an on-demand workforce across the globe called Independent Work: Choice, Necessity and the Gig Economy. At this time, it was estimated that 68M Americans were independent workers out of choice or necessity.
As businesses become more agile, they hire more independent workers. Workers who have the capacity to navigate both traditional and non-traditional opportunities will have an advantage because they will be adaptable, flexible and agile.
Let's look at the term independent worker.
An independent worker is a highly skilled worker who often specializes in a specific skill set or knowledge base allowing employers to tap into skills that are not present in their core workforce. Because they are self-employed and not on payroll, they are expected to take care of their taxes, benefits and pension. Their ability to network, build relationships with employers, and develop an entrepreneurial mindset is key to their success. The independent worker has also been called a contractor, consultant, freelancer or gig worker.
Professionals today need to know the difference between being an employee or an independent worker. In some cases, especially with more employees working remotely, on call, casually or seasonally, the lines can be blurry. Yet, it's important that professionals know the differences in order to ask the right questions in an interview, effectively negotiate an offer and also know how to do your taxes.
What’s the difference between traditional and non-traditional workers?
The traditional workforce is made up of permanent workers. This could be permanent part-time or permanent full-time workers who are often working on salary with benefits and have set hours. On the other hand, the non-traditional workforce is made up of on-demand workers whose hours will change depending on the needs of the employer. There are two groups of workers that make up the non-traditional workforce.
First, there are workers that are hired as employees and they work on-call, casually, seasonally, flexible part-time or full-time on contract. With this model in Canada, the employer takes off the workers pay tax, Employment Insurance and CPP. Secondly, there are workers that are hired as self-employed independent workers such as freelancers, contractors and consultants. Independent workers pay their own taxes and contribute to their own benefits.
The non-traditional workforce has grown because it allows employers the opportunity to dial up or dial down their workforce, hire workers with specific skills to work on certain projects or hire workers who want more freedom and flexibility in their work lives
What about the gig economy?
Over the years, the term "gig economy" has evolved globally and now includes subsections. It is now the umbrella term for on-demand labour and can be described as an economy of trading goods and services that supports temporary work as opposed to permanent work.
As already mentioned, the need for employers to dial up or dial down their talent pool to be responsive to disruption, consumer demands and to stay competitive in their industry has driven the growth in the gig economy (on-demand labour). Because of technology access and a globally talented workforce, solopreneurs, startup companies and established employers now have access to remote, independent workers from around the world through talent hubs such as Fiverr, Freelancer.com, HireMyMom and Upwork, to name a few. This creates the opportunity for workers from around the globe to create lucrative side hustles, become a digital nomad or work from anywhere in the world.
Which brings me to remote workers.
A remote worker is characterized by their lack of physical presence in the workplace. Consequently, the pandemic accelerated the growth in remote work and normalized it. A remote worker can now work from the top of Mt. Everest (depending on the Wifi connection) or can be minutes from the office working from home.
Although the pandemic forced many of us into remote work, now that we are used to it, many employers and workers want to continue working either fully remote or in a hybrid model. Additionally, remote workers have realized they can move out of larger centers to smaller more affordable communities or take advantage of locations where the sun shines brighter and hotter. The shift to a remote workforce isn't going to go away. From an employers perspective, it saves significant costs in housing workers. From the workers perspective, it saves precious time and the costs associated with a daily commute, a work wardrobe, lunches out, and parking.
We can’t forget side hustles.
A side hustle is a side income in addition to your full-time job. It can be a casual job, task-based gigs, freelance work, or an entrepreneurial venture. A side hustle job is a great way to get your foot in the door of a new industry or make extra income. A side hustle gig is a great way to build your skills or a portfolio of work. A side hustle business is a great way to flex your entrepreneurial muscles.
Over the last 10 years, side hustles have grown out of choice or necessity. Gig platforms have made it easier to pick up task-based side hustles. The growth in remote work has reduced commute time making it easier for workers to fit in a side hustle. As well, the desire for flexibility and autonomy have made many workers take an entrepreneurial risk and start a business based side hustle.
Side hustles also add extra income to our bank accounts as the cost of living increases making it a growing necessity for many families to have an extra source of income to add to their full-time salary.
Finally, what is a portfolio careerist?
Portfolio careerists are workers that income stream by combining full-time, part-time, freelance, contract, consulting, seasonal, project based or entrepreneurial ventures. (Typically, not all of the above simultaneously, but SOME of the above simultaneously). Someone who has a side hustle can also be classified as a portfolio careerist because they are streaming income from two sources, a full-time job and a side hustle income.
The portfolio career approach to work is nothing new. People have been income streaming for centuries. The farmer who worked off the farm, sold cattle, eggs and rented out a room in their home is an example of a portfolio careerist. However, the term portfolio careerist is a relatively new term in North America. We have been called multi-trackers, slash careerists and, of course, the bad word of the 1950s, wait for it...MOONLIGHTER. Remember when you couldn't have that night time gig singing in seedy bars because it would look bad to your daytime employer? Well, those days are over.
Prior to the pandemic, the trend towards a portfolio career was growing. Today, the growth in portfolio careers has coincided with the growth in gig work across North America. It also reflects the need for workers to be more flexible, able to adapt to workforce trends, labour market shifts, and pivot to meet their personal, career and financial needs.
The changing world of work has rapidly generated new opportunities. We now have a a talent pool of non-traditional workers and new terminology that workers need to know to effectively navigate their careers. This new vocabulary both shapes and reflects how employers are managing their workforce and how we are working.
Gail Kastning is a Certified Career Strategist and a portfolio careerist. She regularly interviews portfolio careerists and people with out of the box careers. She features them on her blog and in her speaking engagements.
This is Why Contracting is a Great Idea
Why is contract work a great career strategy? Job seekers often think they have to find a full-time, permanent position and they overlook the opportunities that come with short-term contracts. In this blog article, I share the value I see in short-term contracts. Whether they are employee contracts or independent contracts, I have found high value in my career doing contract work from the beginning of my career to mid-career while raising a family and now moving into the later stages of my career. Contract work has given me the opportunity to share my skills and knowledge and support companies as they grow.
I’ve been an independent worker (contractor, consultant and freelancer) for several years, and I can tell you with certainty, contract work can be highly rewarding. Over the years, I’ve been given the opportunity to help more organizations and add value to their business by coming in on contract. It has been a great strategy during transition periods, and it has created better flexibility and balance in my work life.
Contract work grows in tough economic times when employers are uncertain about the economy. Labour market reports from the U.S., Japan and Canada, all show spikes in part-time and contract work after major recessions. Given these trends, we can most likely expect to see short-term employee contracts plus a growth in the demand for independent workers as we move into the future.
Whether we are graduating from post-secondary, are mid-career or are highly experienced individuals, during tough economic times, employers are tentative about making permanent promises. Job seekers must then adjust their expectations so we can connect with the expectations of employers and the opportunities they have.
Here are some of reasons why taking a contract is a great idea.
Get Our Foot in the Door
When I first graduated from university with a teaching degree, there was very little full-time permanent positions available for the hundreds of graduates. In order to get our foot in the door, we had to take a short-term contract. Typically, the contracts were anywhere from 4 months to one year. The benefit of contract work is that the company gets to test drive us and we get to test drive them. It’s kind of like dating and finding out whether or not you are a good fit for one another. If it’s a good match and the company needs more help down the road, contractors who are independent workers can be called back in on a regular basis so it’s possible to create a continued stream of income.
Build Experience and References
If we are a new graduate or we are entering a new occupation, new industry or even a new field within an industry, taking a short contract is an excellent way to share our talents, build some experience and get a reference to add to our resume. Job seekers are often very focused on the long game of getting a permanent, full-time position and I always have to remind them that the people in those positions are may have taken a short contract and landed that permanent role because they got experience with the organization, had a reference from inside the building or from within the industry.
Learn Different Processes and Systems
Contracting to different companies also gives us the opportunity to see how things are done differently from one company to the next. This can be highly advantageous in terms of really understanding the industry, how it functions, and how each company has a place within the economy of the industry. It starts to give us a bigger, broader picture which is extremely helpful in terms of giving us perspective on the challenges and the gaps in service. This makes for great opportunity in the future to help out by becoming a consultant, or to solve problems or fill in gaps by starting our own business.
Opportunity to Collaborate with Different People
This past year, I had three contracts and I LOVED all of them because the people were so great to work with. I really like working with others and if I can get a contract that allows me the opportunity to collaborate, it’s even better. What I especially liked about these contracts was that they were all very different and the way in which we worked together was very different in each contract. This builds collaboration skills in us that we may not otherwise use in one job with one organization. In addition, having the opportunity to work with people from other disciplines helps us grow and build rich knowledge transfer opportunities that we may not get in one job.
Opportunity to Build our Network
We have to KNOW someone to get a job. It doesn’t matter if we apply online or we have a warm lead for a job. In order to get work, we have to know someone, talk to someone and build a relationship either through meeting in a formal interview or in a networking situation. When we take a short-term contract, we have the opportunity to meet people. Contract work helps us build our network because we have the opportunity to use our talents, experience and skills to help a company, work with others and build relationships. We have the opportunity to get inside the building and add value to a business.
Provides a Broader Perspective of the Industry
Contracting to different companies also gives us the opportunity to see how things are done differently from one company to the next. Depending on our industry, we may be able to hold multiple contracts simultaneously. In other cases, it may not be possible to have multiple contracts with competing companies in the same industry. However, depending on our goals for taking a contract, it gives us the opportunity to understand how things are done. This can be highly advantageous in terms of really understanding the industry, how it functions, and how each company has a place within the economy of the industry. It starts to give us a bigger picture and a broader perspective on the challenges and the gaps in service. This makes for great opportunity in the future to become a consultant rather than an independent contractor, and it can also lead to some independent contractors taking the leap into becoming entrepreneurs and hiring people to help fill in gaps or solve problems in their industry.
Contract work can be more flexible
Flexibility has been highly important to me and my family over the last 10 years. I have found that contract work has created the work/life balance that many people dream about but have a hard time creating with a permanent, full-time position. In my design contracts, I have been able to work from home or a co-working space. With my facilitation contracts, I’ve been able to organize my facilitation days around challenging family schedules. As a result, we have rarely needed childcare which has not only saved us thousands of dollars over the years, but it has allowed me to do what I love - be present for my family. I’ve also been able to set my hours with some of my onsite workplace training contracts. This flexibility has been AMAZING, has created balance for us and has given me the opportunity to grow my career by continuing to help organizations but keep the balance that I’ve wanted.
These are 7 reasons why I have included contract work into my career strategy.
If you want to learn more about career management in a changing world of work, hop into Career Corner Toolkit on my home page. It’s FREE. Every month, we cover topics that will add long-term career management tips and strategy that help you build an agile and resilient career.
Here are the Realities of Becoming a Freelancer
I became a freelancer after graduating from high school, getting my first job and then getting laid off in the pandemic. I’ve learned that freelancing certainly has it’s advantages and also has it’s disadvantages. Here are some of the realities.
When it comes to being a freelancer, there are many advantages that make freelancing seem nothing short of a dream job. However, wherever there are advantages, there are also disadvantages. All of which I will be exploring throughout this post.
I am a freelancer who has been working alongside Purposeful Careers for the past six months. I graduated from high school in 2019, and I took a stab at News Broadcasting in the Fall. I decided it wasn’t for me, and so I took it upon myself to get a job working at a grocery store over the course of the holiday season. Then I got a part-time job working for a company called Jiva who had originally approached me because they wanted me to help them do video work. Unfortunately, the pandemic hit, and I got laid off. I didn’t want to have a huge gap in my work history so I approached Purposeful Careers, and asked them if they needed help. I have interest in social media, so we decided I would help create posts.
My job can be compared to that of a social media marketer because over the past several months, I have been working on a graphic design platform called Canva, creating and putting together content for both Instagram and Pinterest. In just six months, I’ve been promoted to taking a stab at writing a blog post. So, here I am.
Freelancing involves working independently for multiple people and/or companies on a contract basis. In other words, a freelancer is a self-employed individual who offers various services to their clients. I have learned over the last six months that being a self-employed freelancer has both advantages and disadvantages that everyone who is thinking about it, should know before they dive in.
Some of the Advantages
Being a freelancer means that you are your own boss, and that you have freedom to choose. You can choose your work hours. You can choose who you want to work for, and for how long you want to work for them. You can choose where to work, and you can choose when to call it a day. For example, I work part-time, three days a week from the comfort of my couch, but I don’t get to choose my hours. I start at 1:00 PM and end at 5:00 PM. During that period of time, I get a new assignment or I continue to work on the assignment from the previous day. I get to go to work in what I would call “picked-up-off-the-street” attire (basically whatever I want).
I also enjoy being able to work without having the commitment of the commute. Being able to wake up, and start work from the comfy cushions of a worn-out-couch is one of the joys of freelancing. Being a freelancer means that you represent yourself, and your brand image, and the biggest advantages of being a freelancer is flexibility and freedom.
Another advantage is the fact that it’s been hard to find a traditional part-time or full-time job in this pandemic. Freelancing has given me the opportunity to learn new skills and get work experience that I wouldn’t normally be able to get. As well, because I don’t have a career direction chosen yet, I’ve been able to test drive social media content creation as a potential career.
Some of the Disadvantages
Keep in mind that as a freelancer, there’s bound to be disadvantages. You have your work cut out for you because it is your job to put yourself in the path of potential work, and find your own clients. As I mentioned, I approached Purposeful Careers after I got laid off. Purposeful Careers has now told other business owners about me so I could have potential clients in the future.
Your workload as a freelancer will vary, and you will not always have a steady stream of income. Not having a steady workload, and not being able to rely on a guaranteed stream of income can be a dealbreaker for some. In my experience, there will be days when my client suddenly decides that they don’t need me, and there will be days when my client is unorganized. For example, let's say I’m scheduled to work on Tuesday afternoon and on Tuesday morning my client says, “It’s okay. You don’t have to work today.” As you can see, being given short notice when it comes to when you work, and when you don’t work is something that freelancers have to deal with. Receiving short notice is a bummer, but in my eyes, it just means I can go back to bed. If you are the kind of person who needs consistency, and a steady income stream then freelancing is not for you.
Freelancing is a great opportunity to make money doing something that you want to, and already know how to do. Both the advantages and disadvantages are worth looking into if you are interested in becoming a freelancer. All in all, freelancing is a job that pretty much anybody can pursue, and if you were to give it a shot, you might find that it is a dream come true.
