Will Independent Contractors Ever Have Stability?
We should no longer view independent contractors as a minority in the workforce.
Independent contractors will make up 50% of the workforce by 2020. Yet, the way we support these workers fails to provide a sustainable way for them to live, work, and play. The American workforce has two classifications: W-2 workers and 1099 independent contractors. W-2 workers are employees of a company, taxes get deducted from their payroll, and they receive benefits from the employer. 1099 workers have to do their own taxes and don’t receive any benefits because they are independent.
The new norm.
With the rise of companies like Uber, TaskRabbit, and Orderup, independent contractors are able to turn gig work into a sole source of income. The gig economy has created the fastest growing workforce and created a new career. Yet, there is no stability for these workers. They have to take care of their own benefits and the platforms they use could be gone in an instant. Now, more than ever, there is demand for independent contractors get the same job security and benefits as W-2 workers.
Peace of mind.
This isn’t just a phase for the workforce. The American economy is turning to a service-based landscape, and the 1099 workforce will continue to grow with it. Until independent contractors can feel the same stability that W-2 workers have, they can’t give their full focus to their work. They will worry about what happens if they get sick or being responsible for bookkeeping. Many companies, like tilr, are working to build a foundation of stability for 1099 workers. But, until legislation gets passed, it’s on companies to provide the peace of mind these works deserve.
So what’s standing in the way? Download our white paper, The Need for a New Class of Worker, to see the roadblocks and the suggested pathways to the creation of the third class of worker.