Independent work: choice, necessity, and the gig economy



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Independent-Work-Choice-necessity-and-the-gig-economy-Full-report

Out of necessity
3,368
2,077
All workers


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McKinsey Global Institute
Independent work: Choice, necessity, and the gig economy
After controlling for choice, independent workers still report higher satisfaction 
in our survey than traditional workers
Narrowing our focus to compare survey respondents who are already working in the 
style they prefer, we find there is still a substantial difference in the satisfaction levels of 
independent workers and traditional employees. Free agents have an average overall 
satisfaction rating of 4.9, the highest of any group, compared to a 4.6 average for those 
doing traditional work by choice. This result holds across income and age groups, 
suggesting that freedom itself has real value for free agents.
To understand the nuances that go into overall satisfaction, we asked respondents to rate 
their satisfaction on specific dimensions, including their engagement with the work itself, 
their income security, the hours they work, and the benefits the receive. Exhibit 16 shows 
the results. The first column shows the mean response for traditional workers by choice, 
and we compare the responses of various groups to this baseline, starting with our two 
segments of independent workers by choice (free agents and casual earners). We then 
show the responses of those who are in traditional jobs out of necessity and those who are 
in independent work out of necessity.
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Free agents report higher satisfaction than workers who choose traditional jobs on 12 of 
the 14 dimensions, such as flexibility of schedule, creativity, the content of the work itself, 
recognition, and even income level. They had similar levels of satisfaction as traditional 
workers on the remaining two dimensions, income security and benefits. 
The satisfaction rates of casual earners track closely with those of traditional workers by 
choice. This may reflect that roughly 60 percent of casual earners also have traditional jobs 
(the remainder are students, retirees, or caregivers). Since our survey asked respondents 
to rate their satisfaction with work life in general, rather than in relation to a specific job, the 
answer for casual earners who are also traditional jobholders may reflect the combination—
which, in effect, allows them to enjoy the best of both worlds. On average, they report 
higher satisfaction on five of the 14 dimensions, including hours, flexibility of location, and 
independence in their work life; their satisfaction ratings are roughly equal on the other 
dimensions. This high level of satisfaction could stem from the fact that many casual earners 
have turned hobbies into paying assignments, or they enjoy work that provides a change 
of pace from their day jobs. Etsy surveyed its sellers and found that almost two-thirds used 
the platform for supplemental income, some to achieve greater financial independence 
and others to help support their families. But roughly three-quarters said they wanted to do 
something they enjoyed, and one-third said they wanted to fulfill a personal dream.
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  Statistically significant differences are lost if we separate independent workers by necessity into their two 
component segments (the reluctants and the financially strapped), due to the small sample size. We therefore 
pool together all independent workers by necessity. 
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Building an Etsy economy: The new face of creative entrepreneurship
, Etsy, July 2015. 
Free agents across both the EU-15 and the United 
States report the highest levels of satisfaction with 
their work lives of any group in our survey.


56
McKinsey Global Institute
2. Choice vs. necessity: Understanding the independent workforce 

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