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v
JUNE 2016

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Table of Contents
• Overview
• Key Findings
• Employers are Recognizing the Benefits of New Workforce Trends
• Workforce Trend: Use of Contingent Workers
• Workforce Trend: On-Demand Economy Principles
• Workforce Trend: Automation
• Companies are Questioning the Social Contract
• Companies Prefer Traditional Employment for Now

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OVERVIEW

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Purpose and Methodology
The Workforce of the Future Survey by Burson-Marsteller, the Markle Foundation, The Aspen Institute
Future of Work Initiative and TIME sheds light on how hiring practices have been and will be affected
by new models of employment such as contingent work and the On-Demand Economy.
From June 5-16, 2016, Penn Schoen Berland (PSB) conducted 800 interviews with employers, defined
as: Employees or business owners who make hiring decisions for their organization. The margin of
error for the total sample is +/- 3.46% and larger for subgroups.
This survey builds off the November 2015 On-Demand Economy Survey by Burson-Marsteller, The
Aspen Institute and TIME, which surveyed 3,000 adult Americans to understand the size and
composition of the On-Demand Economy in the United States and to provide insights into trends
surrounding the On-Demand Economy and its participants (both workers and users).
There are interesting parallels between the two surveys and particularly between the opinions of
workers and employers about this new way of doing business. Therefore, there are times throughout
this presentation where the results from both surveys are compared.
Overview

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Audience, Sample Size and Margin of Error
Audience Audience definition Sample Size Margin of Error
Employers
Employees or business owners who make hiring decisions for
their organization
800 +/- 3.46%
• Company Size: 1-100 Employees Employers whose organizations employ 1-100 people. 357 +/- 5.19%
• Company Size: 100-1000
Employees
Employers whose organizations employ 100-1000 people 252 +/- 6.17%
• Company Size: 1000+ Employees Employers whose organizations employ more than 1000 people 191 +/- 7.09%
• Uses Independent Contractors Employers whose organizations use independent contractors 478 +/- 4.48%
• Does not use independent
contractors
Employers whose organizations do not use independent
contractors
322 +/- 5.46%
• Will use more independent
contractors
Employers who state that in the next 5 years their organizations
will use more independent contractors
331 +/- 5.39%
• Will use fewer independent
contractors
Employers who state that in the next 5 years their organizations
will use fewer independent contractors
331 +/- 5.39%
• Will use and provide more On-
Demand Economy services
Employers who state that in the next 5 years their organizations
will use and provide more On-Demand Economy Services
280 +/- 5.86%
• On-Demand Economy Workers
From The Future of Work Survey: People who offer services as
part of the On-Demand Economy
645 +/- 3.86%
Overview

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KEY FINDINGS

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Summary of Key Findings
We are at a critical point in the evolution of the modern workforce. The traditional
employment model is shifting as companies increasingly use contingent workers and embrace
the principles of the On-Demand Economy. These trends have the potential to change
conventional employment and are forcing employers to reevaluate the social contract and
other core elements of the employer-worker relationship. Though the workforce has not yet
changed dramatically, it is clear that we are witnessing a fundamental shift.
1. Employers are Recognizing the Benefits of New Workforce Trends
Independent Contracting and On-Demand Economy forces are becoming key parts of the workplace and present
clear cost and scalability benefits, threatening the traditional employment model.
2. Companies Have Doubts About the Continuing Applicability of the Social Contract
New workforce trends are making companies re-evaluate the social contract, and the relationship between employers
and workers is evolving.
3. Companies Prefer Traditional Employment Arrangements for Now
Employers prefer traditional employment and will still hire full-time employees instead of contractors when they can,
because full-time employees provide more long-term value and are more invested in their companies.
Overview

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KEY FINDING: EMPLOYERS
ARE RECOGNIZING THE
BENEFITS OF NEW
WORKFORCE TRENDS

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WORKFORCE TREND: USE OF
CONTINGENT WORKERS

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The majority of companies are currently using independent
contractors in some capacity
60
50
66
70
3
2
3
4
37
48
31
26
All Employers
1-100 Employees
100-1000 Employees
1000+ Employees
Respondents were shown the following:
We would now like to ask you some questions about your company and workforce. The next series of questions are about non-employee contingent
workers. These are workers who work for an organization on a non-permanent basis and typically work on a Form 1099, as opposed to full time, W2-based
employees of an organization.
Contract or non-employee contingent workers are also known as freelancers, independent contractors, or temporary contract workers. They do not include
workers, part time or full time, who are issued a Form W2.
Does your organization use non-employee contingent workers?
Showing %
Yes Don’t know No
Workforce Trends: Contingent Workers
…And they use these workers predominantly for low-skilled work or ad-hoc projects

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Employers who use
independent
contractors
Satisfaction with independent contractors is extremely high,
even among those who say they will hire fewer in the future
IF USES INDEPENDENT CONTRACTORS: Generally speaking, how satisfied have you and your
organization been with the performance of the non-employee contingent workers that you’ve
used? Showing %
50 45
59
47 53
36
-3 -2 -5
Total % Very
Satisfied
Don’t know
Total % Somewhat
dissatisfied
Total % Somewhat
Satisfied
Total % not
Satisfied at all
Will use more
independent contractors
Will use fewer
independent contractors
97% satisfied 98% satisfied 95% satisfied
Workforce Trends: Contingent Workers

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Independent contractors allow companies to save money on
benefits and tailor their workforce by size and skillset
Below is a list of potential arguments an organization could make in favor of hiring a non-employee contingent worker instead of a full-time, W2-based
employee. Please indicate whether, based on your experience, you agree or disagree with these arguments for hiring non-employee contingent workers.
Showing % among employers who use independent contractors, Ranked by Total Agree
41
50
37
36
41
33
36
34
35
34
29
29
26
28
26
23
17
49
36
47
47
41
49
43
45
43
44
49
44
45
40
39
41
33
1
1
1
4
1
1
1
1
1
2
3
1
2
3
7
10
13
13
13
13
14
15
17
15
15
22
21
21
23
24
37
3
3
2
3
4
4
4
5
5
6
6
3
6
9
11
10
10
Allows my company to quickly adjust our workforce as needed
Saves my company money on benefits
Allows for completion of specific tasks or deliverables
Their flexibility makes it easier to find workers right away
Allows for hiring more specific skills
Non-employee contingent workers can start working right away
It is simpler dealing with the tax situation of non-employee contingent workers
Saves my company money on administrative costs
Saves my company money on salary
The process of hiring non-employee contingent workers is simpler
Non-employee contingent workers have fewer demands and expectations
Allows for greater choice of candidates
It is easier to find non-employee contingent workers
My organization spends less on tools, equipment, and office space
My organization spends less on training
Non-employee contingent workers take less time to train and get up to speed
Non-employee contingent workers are more efficient
% Strongly Agree Don’t know
% Somewhat
Disagree
% Somewhat Agree % Strongly Disagree
Workforce Trends: Contingent Workers

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Those currently using independent contractors are much more
likely to see contractors as a solution for increased demand
56
41
77
2
2
3
42
58
20
All Employers
Uses Independent Contractors
Does not use Independent Contractors
Which of the following is closest to your view? Showing %
Contracting work out makes it easier to
accommodate ebbs and flows in demand
and work volume than having a full-time
employee because we pay for work only when
we need to.
Having a full-time employee on hand is
easier to accommodate the ebbs and flows
in demand and work volume because they
are trained to do the job and can react
quicker.
Don’t know
Workforce Trends: Contingent Workers

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The majority of employers have used more independent contractors in
the last 5 years and those who use contractors are most likely to use
more in the next 5 years
41
31
17
12
41
57
All Employers
Uses Independent Contractors
…more
independent
contractors.
…fewer
independent
contractors.
Don’t know
In the next five years, my organization will use…
36
31
2
1
62
67
All Employers
Uses Independent Contractors
…more
independent
contractors.
…fewer
independent
contractors.
In the last five years, my organization is using…
Workforce Trends: Contingent Workers

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WORKFORCE TREND:
ON-DEMAND ECONOMY
PRINCIPLES

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Employers are familiar with and favorable towards the On-
Demand Economy
Respondents were shown the following definition:
The On-Demand Economy can be defined as an industry that
encourages consumers to share use of goods and services rather
than own them individually. Using online technology, consumers
have access to goods and services provided by companies and
other consumers, and can use those goods and services when
needed and offer their time or property to earn extra income.
Services within the On-Demand Economy typically include ride
sharing, accommodation sharing, on-demand professional
services and food delivery, and on-demand car rental services.
Workers in the On-Demand Economy are principally non-
employee contingent workers. Proponents of the On-Demand
Economy argue that this provides workers with added flexibility,
while critics argue they do not have the same benefits as
traditional full-time employees and their status is a cost-saving
mechanism for the companies of the On-Demand Economy.
This economy has also been called the sharing economy, gig
economy, or 1099 economy.
71% of employers say they are
familiar with the On-Demand
Economy
68% say they are favorable towards
the concept
Workforce Trends: On-Demand Economy Principles
35% say they will use and provide
more On-Demand Economy services
in the next 5 years

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Both employers and workers see the On-Demand Economy as a completely
different way of doing business, and agree that the On-Demand Economy
creates wage-earning opportunities
Which of the following is closest to your view? Showing %
The On-Demand Economy is…
Workforce Trends: On-Demand Economy Principles
30
34
31
7
1
7
62
65
62
All Employers
Will use and provide more On-Demand
Economy services in the future
On-Demand Economy Workers
…a completely
different way of doing
business
…not that
different from the
traditional way of
doing business
39
22
32
10
11
52
78
57
All Employers
Will use and provide more On-Demand
Economy services in the future
On-Demand Economy Workers
…creating more
opportunities for workers
by bringing more wage-
earning opportunities to
more people.
…eliminating
traditionally secure
jobs and creating
part-time, low-paid
work.
The On-Demand Economy is…
Don’t know

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Nearly half of Employers feel they will use and provide more
On-Demand Economy services in the next five years
Which of the following is closest to your view Showing % among All Employers
In the next five years, my organization will…
…use more
On-Demand
Economy
services
…use fewer or
no On-
Demand
Economy
services.
Don’t know
34 19 47
Workforce Trends: On-Demand Economy Principles
…be providing
more On-Demand
Economy services
…not be
providing more
On-Demand
Economy services
In the next five years, my organization will…
42 15 43

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Employers who will use and provide more On-Demand Economy services
are optimistic about the On-Demand Economy’s benefits
Do you agree or disagree with the following statements:
Net Agree (total agree-total disagree), ranked by employers whose organizations will use and provide more On-
Demand Economy services in the future
75
70
69
67
61
54
47
24
23
38
49
30
33
30
17
49
24
24
The On-Demand Economy will make it easier for workers to develop
skills that make them competitive in the job market
The On-Demand Economy will give more opportunities for work for
more people
The On-Demand Economy will make it easier for workers to build
careers
The On-Demand Economy is good for society
Working in the On-Demand Economy is a good source of primary
income
Some full-time jobs and tasks within my organization could easily be
replaced by On-Demand Economy services
The On-Demand Economy helps companies take advantage of
workers by not providing benefits and protections
On-Demand Economy companies are exploiting a lack of regulation
for immediate growth
The move towards an On-Demand Economy will mean workers will
have fewer opportunities for training
Workforce Trends: On-Demand Economy Principles
Net Agree, All Employers
Net Agree, Employers whose organizations will use and
provide more On-Demand Economy services in the future

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WORKFORCE TREND:
AUTOMATION

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Employers have and will move towards more automation, but right now
automation is limited by the scale of the company
Which of the following is closest to your view Showing %
36
54
24
18
2
2
1
5
62
45
75
77
All Employers
0-100 Employees
100-1000 Employees
1000+ Empoyees
…invested in
automating
more tasks
and functions
…not invested
in automating
more tasks
and functions
25
38
16
10
7
8
4
8
68
53
80
81
All Employers
0-100 Employees
100-1000 Employees
1000+ Empoyees
…invest in
automating
tasks and
functions
…not invest in
automating
tasks and
functions
Don’t know
In the last five years, my organization has…
In the next five years, my organization will…
Workforce Trends: Automation

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Employers are split as to whether automation will replace workers, or allow
more workers to be hired through efficiency
Which of the following is closest to your view? Showing %
40
31
48
46
13
21
5
9
47
48
47
45
All Employers
0-100 Employees
100-1000
Employees
1000+ Empoyees
Automation in my organization
will lead to more workers being
replaced as technology allows it to
operate leaner.
Don’t know
Automation in my organization
will allow more workers to be
hired as technology allows it to
grow.
Workforce Trends: Automation

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KEY FINDING: COMPANIES HAVE
DOUBTS ABOUT THE
CONTINUING APPLICABILITY OF
THE SOCIAL CONTRACT

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The strong majority of employers feel that companies will
move towards a more on-demand labor model
Do you agree or disagree that more companies and organizations will move towards more of an on-
demand labor model? Showing %
70
75
64
88
10
6
15
3
20
19
21
9
All Employers
Uses Independent Contractors
Does not use Independent
Contractors
Will use and provide more
On-Demand Economy
services in the future
% Total Agree Don’t know % Total Disagree
Companies Have Doubts About the Continuing Applicability of the Social Contract

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Almost 7 in 10 agree the social contract should be reformed
for independent contractors
How much do you agree with the following statement: The social contract – whereby health, retirement, and other
benefits are generally tied to traditional, full-time W2-based employment – should be reformed as more workers move
towards independent contract work? Showing %
20
20
20
32
48
50
45
52
7
5
10
1
16
17
15
9
9
8
10
5
All Employers
Uses Independent Contractors
Does not use Independent
Contractors
Will use and provide more On-
Demand Economy services in the
future
% Strongly Agree Don’t know
% Somewhat
Disagree
% Somewhat Agree % Strongly Disagree
Companies Have Doubts About the Continuing Applicability of the Social Contract

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Employers and workers disagree on whether workers
should be provided benefits
Do you agree or disagree with the following statements:
Showing % Net Agree (total agree – total disagree)
52
37
34
28
27
27
21
-12
44
44
40
54
28
24
32
11
Net Agree, All Employers
Net Agree, On-Demand
Economy Workers
On-Demand Economy workers don't have the financial safety net other workers do
On-Demand Economy services are reliable
On-Demand Economy companies are trustworthy
On-Demand Economy workers should be given more benefits as part of their job
On-Demand Economy companies care about peoples’ privacy
On-Demand Economy companies don't invest in training of their workers
On-Demand Economy companies care about their workers
On-Demand Economy workers have the same job
security as employees at traditional companies
Companies Have Doubts About the Continuing Applicability of the Social Contract

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There’s a large discrepancy between benefits offered to
full-time workers and independent contractors
Please indicate which of the following benefits your organization offers to full-time, W-2 employees and to non-employee
contingent workers. Select all boxes that apply. Showing %, ranked by benefits provided to full-time employees
80
80
76
72
70
70
68
68
66
56
51
47
46
40
33
32
17
13
26
19
12
14
22
19
15
16
14
13
32
13
21
19
Healthcare
Paid vacation
Tax withholding
Maternity leave
401k
Dental
Bereavement leave
Family leave
Vision
Paternity leave
Education Reimbursement
Non-401k retirement planning options
Work from home
Stock options
Public transportation subsidies or reimbursements
Parking reimbursement
Offered to full-time, W2-based employees
(among All Employers)
Offered to independent contractors
(among employers who hire independent contractors)
Companies Have Doubts About the Continuing Applicability of the Social Contract

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Two-thirds of employers feel they should not be responsible for providing benefits
to independent contractors, but don’t agree on who should
Which of the following parties do you believe should be responsible with providing benefits for non-employee
contingent workers? Showing % among All Employers
22
18
9
6
4
1
6
Workers themselves
Private companies that help workers
manage/gain benefits
The government
Worker associations
Unions
Other
Don't know
From employers
…And half of employers do not believe they are responsible for providing training to independent contractors
34
66
Not from Employers
Companies Have Doubts About the Continuing Applicability of the Social Contract

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KEY FINDING: COMPANIES
PREFER TRADITIONAL
EMPLOYMENT FOR NOW

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Employers prefer hiring full-time employees and think full-time
employees provide value over the long term
Companies Prefer Traditional Employment for Now
Which of the following is closest to your view Showing %
My company generally
seeks to limit the
number of full time
employees in favor of
non-employee
contingent workers.
Hiring a non-employee
contingent worker is
better for my
organization because it
saves us money on taxes
and benefits we would
otherwise have to pay
hiring a full-time
employee.
My company generally
seeks to limit the
number of non-
employee contingent
workers in favor of full-
time employees.
67
63
73
6
5
9
27
33
19
All Employers
Uses Independent
Contractors
Does not use
Independent Contractors
58
49
71
5
3
7
37
48
21
All Employers
Uses Independent
Contractors
Does not use
Independent Contractors
Hiring a full-time
employee is better for
my organization
because they provide
more value over the
long term despite
having to pay more up
front on taxes and
benefits.
Don’t know

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Employers evaluate full-time employees and independent
contractors on the same criteria
You will now see a list of attributes someone might take into account when considering a candidate for hire. Please drag
these attributes into the adjacent container in order of their importance when considering...
Showing Attributes Ranked by employers who use independent contractors
Past Professional Experience
Relevant Years of Work
Education
Professional Portfolio
Writing and Speaking Ability
References
Desired Compensation
Professional Network
Cultural Fit
Past Professional Experience
Relevant Years of Work
Education
Professional Portfolio
Writing and Speaking Ability
References
Desired Compensation
Professional Network
Cultural Fit
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
A full-time, W2-based employee: An Independent Contractor:
Companies Prefer Traditional Employment for Now

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Offering benefits to employees remains a critical component
of attracting talent, and employers expect workers to grow
with their companies
Which of the following is closest to your view? Showing %
79 3 18All Employers
Providing workers with benefits is necessary
to attract and retain workers.
Don’t know
Providing workers with benefits is not
necessary to attract and retain workers.
78 3 19All Employers
I expect workers to stay on and grow their
careers with my organization in the long
term.
Don’t know
I expect workers to stay on with my
organization in the short term, then find an
opportunity elsewhere.
Companies Prefer Traditional Employment for Now

33.
33
16
14
15
12
12
11
10
12
10
10
12
8
10
42
40
37
35
31
32
33
30
30
25
22
26
22
1
1
1
2
1
1
1
1
2
1
2
2
24
31
31
33
34
35
36
33
35
39
35
40
38
17
13
15
20
22
21
19
24
24
24
30
24
28
Non-employee contingent workers are not as loyal
Non-employee contingent workers are not always available when I need them
Non-employee contingent workers are not as invested in their product
Non-employee contingent workers are harder to retain
Non-employee contingent workers are not as reliable
Non-employee contingent workers do not understand my organization or objective
Relying on non-employee contingent workers increases administrative burden…
Non-employee contingent workers are not as skilled as full-time employees
Non-employee contingent workers are not as motivated
Non-employee contingent workers take longer to train and get up to speed
Non-employee contingent workers are more expensive
It is harder to find non-employee contingent workers
The process of hiring non-employee contingent workers is more difficult
% Strongly Agree Don’t know
% Somewhat
Disagree
% Somewhat Agree % Strongly Disagree
Employers are looking for engaged, loyal employees and
independent contractors do not meet that expectation
Below is a list of potential arguments an organization could make against hiring a non-employee contingent worker instead of a full-
time, W2-based employee. Please indicate whether, based on your experience, you agree or disagree with these arguments.
Showing % Total Agree (Strongly + Somewhat Agree) among employers who use independent contractors
Companies Prefer Traditional Employment for Now

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Conclusion
There are plenty of signs indicating traditional employment is still the most common model
governing the workplace. But, dig a little deeper, and one can see some changes to the traditional
model as a result of emerging workplace trends:
• Most companies today are using independent contractors in some capacity and are satisfied with their work
• The criticism against contingent workers is they are not as invested in the company they work for or their
output as much as full-time employees
• Employers feel companies will, in time, move to a more On-Demand labor model and agree On-Demand
Economy principles signal a shift in how work gets done
Given these factors, it is clear that the short-term benefits of contingent workers and long-term
value of full-time employees are odds in today's economy, and as employment models change, so
too will the employer-worker relationship.
Conclusion