As leaders and managers seek greater workforce flexibility, there has been considerable discussion about the contingent workforce and gig economy. In particular, the gig economy is reported to be growing ‘exponentially’ in numbers and importance. New ways of working are emerging such as crowd work and work-on-demand, which allow employers and employees to efficiently match job opportunities to flexible working schedules are seen to be changing the way people engage with work.

The upside of working in the gig economy seems obvious and appealing for employees: choice, autonomy and flexibility. The downsides are not so apparent: greater employment uncertainty, social isolation and the commodification of work. 

But are these new forms of employment in the gig economy really something new or are they the most recent expression of an evolving issue? Are these forms of work just new labels for work that lies somewhere between ‘employee’ and ‘independent contractor’? 

Ultimately, the gig economy and contingent workforce have their roots in a shared desire of  both employers and employees for flexible working. 

Sorting fact from fiction

Different sources cite that between 17% and 30% of the Australian workforce are part of the contingent workforce or engaged in some form of ‘freelance’ work. The estimates vary considerably because the terms used to describe the contingent workforce are dogged by definitional issues . 

So, how do we get a clearer view? 

We might look at the changes in hours worked. If the rate of growth in more flexible forms of employment has been strong then it should be apparent in the Australian Bureau of Statistics Census data. 

• In 2011, of employed people in Australia, 10.8 % worked 1 to 15 hours, 9.4% worked 16 to 24 hours and 45.3% worked 40 hours or more.

• In 2016, of employed people in Australia, 11.4% worked 1 to 15 hours, 10.1% worked 16 to 24 hours and 43.0% worked 40 hours or more.

There are increasing number of Australian’s working less than full-time hours, and less Australian’s working what has been traditionally considered ‘full-time’ hours. There are lots of possible explanations for this. At about the same time, it was also reported that in 2016 more than 86 per cent of total net jobs created over 12 months were part-time. So, not only is there a shift in the pattern of working hours but there are also more jobs being created that require less than full-time employment.  

We might also expect to see a growth in contingent or flexible working is in the number of independent contractors. We found the number of independent contractors has remained steady since 2015 at about 9% of all employment. Importantly, in terms of flexible work, almost three quarters of all independent contractors are male and employed in the Construction industry. We will have closer look at independent contractors in a future post.

To see the issues more clearly we need to take a step back and look at the evolution of work in relation to society. 

The typical Australian sketches the outline of the change.

• In 1961, the typical Australian was a 29-year-old male working in an office environment, most likely working full-time.

• In 2011, the typical Australian was a 37-year-old female employed sales or administration, most likely part-time.

• In 2016, the typical Australian was a slightly older female (38 years old), most likely still working part-time in sales or administration.

Part-time work as a share of total employment in Australia has grown steadily over the past five decades from just under 10% in 1967 to 32% in 2017. There is no one clear factor driving this change but rather many drivers working together. However, it seems likely the growth in female participation in the workforce has had a substantial effect. Over 50 years, female participation has risen from 40% to 60% of the workforce with half of those employed part-time. 

The changes in the profile of the typical Australian say a lot about the way work has been changing as a feature of Australian society. It suggests the drivers of increased workplace flexibility have been persistently evolving over time. 

The demands modern life places on individuals and families has been, over the past 50 years, unrelenting. For employers, there has been pressure to accommodate these changes through greater flexibility in the way work is arranged. The forms of employment associated with the gig economy are the latest manifestation of a long run trend toward increased flexibility in the workplace. 

The place of work in our lives, and our relationship with work, has changed considerably over the past 50 years. Our question is: how effectively have we responded to the need for flexibility? 

Necessary but not sufficient

In Australia, the Fair Work Act (2009) sets clear rules and obligations in regard to enterprise bargaining and agreements such that every enterprise agreement must include a 'flexibility term'. Accordingly, the majority of Australian workplaces have policies and practices that support flexible work. While this is a necessary enabler of flexible employment, alone it is not sufficient. 

Implementing workplace flexibility can be challenging. It requires us to think about flexible work not as a slimmed down version of full-time employment but rather as a form of work that offers a different packaging of workforce capacity and capability. It requires us to think closely and creatively about workplace processes and relationships that are grounded in the assumption of a full-time workforce.

Our experience, and it seems the experience of others we speak to, is that ‘workplace culture’ is the most frequently cited reason for not accommodating flexible working practices. This suggests making the most of flexible work is not a technical problem to be solved through policy, procedure and process but rather a problem of leadership, culture and behaviour.

This is the first of an as yet unknown number of related posts in which we will explore the practice of flexible work. Our aim is to better understand the issues from the perspective of the employee (our next post), the employer (the one after that), and then we will consider what the pivot points for change might be. Along the way we may take the time explore related topics.

We are sorting through the issues for ourselves and writing them down as we go. If you have views on flexible work either as someone managing flexible work or someone working flexibly, we’d be happy to hear them.

About the Authors
Sally Dorsett is passionate about improving access to flexible work. She has been responsible for leading and implementing workplace change to improve flexible working practices throughout her career.

David Schmidtchen is fascinated by people, work and organisation. He interested in the growing diversity of employment types and how organisations will respond.

The views expressed in this article are the views of the authors, not their employer. 
This article is provided as general information not advice.

Sources

For a detailed breakdown of the gender composition of the Australian workforce see here.
Australian Bureau of Statistics Census, 2016
Australian Bureau of Statistics, Australian Social Trends, 2013 
Fair Work Ombudsman
Professor Bill Mitchell, Centre of Full Employment and Equity, University of Newcastle, 19 August 2016

Reserve Bank of Australia, The Rising Share of Part-time Employment, 2017