Freelancing in Australia: A National Survey of the New Workforce

2. 0/ %*1%,!,),$6 • An online survey of 1,049 Australian adults who have earned income from work in the past 12 months • Data collected July 19 - July 31, 2014 by independent research firm Edelman Berland • Results are weighted to ensure demographic representation in line with the Australian Bureau of Statistics Labour Force Survey • Overall margin of error of ±3.04% at the 95% level of confidence Intelligent NON-FREELANCERS Definition: - Individuals who earned income through work but have not engaged in supplemental, temporary, project- or contract-based work, within the past 12 months. Sample n=738 FREELANCERS Definition: - Individuals who have engaged in supplemental, temporary, project- or contract-based work, within the past 12 months. Sample n=311 Engagement © Copyright 2014 Daniel J Edelman Inc.

3. 12!6,' 130 Elance-oDesk commissioned Edelman Berland, an independent research firm, to conduct a study of the freelance workforce within Australia with the following objectives: 1. Quantify the number of people freelancing in Australia and their economic 2. Assess the state of freelancing, especially current demand for freelance 3. Gather insights into drivers and barriers impacting freelancing 4. Gauge the outlook for freelancing, especially among millennials (AKA Gen Y) This results deck is organised in sections to detail results on each of these objectives. Intelligent impact services as they become the majority of our workforce Engagement © Copyright 2014 Daniel J Edelman Inc.

4. 6#+!+$0ț6,' 13Ȝ 1. Freelancing quantified • There are ǘǽǜ*)),+-,-)!,+$#/)+ 4,/(+201/)– 30% of our national • People who freelance contribute an estimated ʏǚǖ)),++#/)+ /++$01,,2/ 2. The state of freelancing • ǜǙʢ,#+,+Ȓ#/)+ /0say they4,2)!4))+$1,!,4,/( outside their primary job 1, • 3/%)# (58%) of those freelancing !,0,,21,# %, rather than necessity • The top drivers of freelancing are: ǖǽ/++$51/*,+6, Ǘǽ3+$#)5)0 %!2), and Intelligent workforce ,+,*6 *(*,/*,+6 ǘǽ3+$1%#/!,*1, %,,04% %-/,' 101,4,/(,+ • ǘǖʢ,#*,,+)$%1/04%,%3-/*/6',%31%,2$%1,21.211+$to work completely independently – this represents more than 218,000 people Engagement © Copyright 2014 Daniel J Edelman Inc.

5. 6#+!+$0ț ,+1ǽȜ 3. Insights into barriers and drivers • +!+$4,/(and, correspondingly, + ,*01)16 are the 1,-///01,!,+$*,/ • ǚǞʢof freelancerssaid 1 %+,),$6%0*!10/1,#+!#/)+ 4,/( • ǘǕʢof freelancers have !,+-/,' 1,+)+, and of those, %)##+!-/,' 1041%+1%/ • ǛǙʢof freelancersagreed that 0, )*!0!/01 ))6 %+$+$1%!6+* 0,# • +0+!6,,*/0/#/)+ +$*,/1%++6,1%/$$/,2-0. Over a third of • /)+ +$03)2!with 59% agreeing that freelancers offer skills that might be difficult to Intelligent #/)+ work !60 +14,/(+$ in the freelancer market 4. The outlook for freelancing • ǜǖʢ,##/)+ /0say the 01!60/61%!#,/#/)+ +$and ǚǝʢ0! #/)+ +$0 //-1%0*,//0- 1!1,!6 than it was three years ago Gen Ys (33%) and over 55s (35%) are freelancers find traditionally Engagement © Copyright 2014 Daniel J Edelman Inc.

7. %//ǘǽǜ*)),+-,-)#/)+ +$+ 201/) respondents to determine the percent who earned freelance income in the past year. Results showed that ǘǕʢ,#1%201/)+4,/(#,/ 0!,+$#/)+ 1316. • Based on the Australian Bureau of Statistics’ September 2014 Labour Force report which estimates there are 12,350,400 people in the labour force, we estimate that the Australian labour force currently includes ǘǽǜ*)),+-,-)4%,/#/)+ +$ǽ • A November 2013 study by the Australian Bureau of Statistics found there were 986,400 “independent contractors” – which is defined as people who operate their own business and who contract to perform services for others without having the legal status of an employee. There has never been a study that includes other types of freelance workers to quantify the total number of people actually doing freelance work. • %0#/)+ /0 ,+1/21+01*1!ʏǚǖ)),+++2))6+#/)+ Intelligent • Our survey of over 1,000 Australian workforce members rigorously screened /++$01,,2/ ,+,*6ǽ Engagement © Copyright 2014 Daniel J Edelman Inc.

9. ,4!!4.2+1#6#/)+ /0Ȅ Each respondent ran through a series of questions that carefully qualified their employment status and income in order to detect freelancing that might otherwise go unrecorded. The following definitions and examples explain 5 segments of freelancers captured: 1.

10. +!-+!+1,+1/ 1,/0(35% of the independent workforce / 1.3 million professionals) – These “traditional” freelancers don't have an employer and instead perform freelance, temporary, or contract work on a project-to-project basis. 2. ,,+)$%1/0 (19% / 704,000) - Professionals with a primary, traditional job who also moonlight doing freelance work. For example, a corporate-employed web developer who does projects for non-profits in the evening. 3. 3/0#!,/(/0(23% / 852,000) – People with multiple sources of income from a mix of traditional employers and freelance work. For example, someone who works the front desk at a dentist’s office 20 hours a week and fills out the rest of his income driving for Uber and doing freelance writing. Intelligent Engagement © Copyright 2014 Daniel J Edelman Inc.

11. ,4!!4.2+1#6#/)+ /0Ȅț ,+1ǽȜ 4. *-,//6,/(/0(20% / 741,000) - Individuals with a single employer, client, job, or contract project where their employment status is temporary. For example, a business strategy consultant working for one startup client on a contract basis for a month-long project. 5. /)+ 20+004+/0(3% / 111,000) – These freelancers have between one and five employees, and consider themselves both a freelancer and a business owner. For example, a social marketing guru who hires a team of other social marketers to build a small agency, but still identifies as a freelancer. In order to qualify, freelancers had to have earned freelance income within the past 12 months. The following slide demonstrates how freelancers were screened through the survey questionnaire. Intelligent Engagement © Copyright 2014 Daniel J Edelman Inc.

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21. Now that I am semi-retired, I can enjoy [extra income] without all the ardours of a permanent job. To make more money. To spend more time with family. So that I can be my own boss and make my own choices. I want to enjoy doing projects that have some meaning. So I can enjoy more free time, no stress at work, less admin duties. To pursue my creative outlets. I see it as a way to slowly develop my own financial independence so that I can continue to make money well into the future despite my location or age or physical limitations. Intelligent ,/1%+%)#,##/)+ /0$+ #/)+ +$6 %, Ǿ+,1+ 0016 It’s a change from the normal job, exciting, get to travel, good money. To gain new skills and move my career forward. Engagement © Copyright 2014 Daniel J Edelman Inc.

24. ,01,#20+1/!1,+)',0-/,)6%3 ,4,/(/04%,/*,,+)$%1+$ȁ 10% Of all workers with a primary 704K Moonlighters Intelligent employer have done work outside of their main job in the past year to earn additional money Engagement © Copyright 2014 Daniel J Edelman Inc.

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33. 211 %+,),$60*(+$10/1,#+! 4,/( Accessing information is far easier today. I complete tasks around 300% faster today than say 5 years ago. It helps me provide far better quality work. Technology has allowed me to work from home and autonomously. More mobile, work on the go. Intelligent 59% Agree that technology has made it easier to find freelance work Social media and the internet have made it possible for me to market myself to an audience at very low cost. The ripple effect of 'word of mouth' now being linked with technology enables referrals to spread ten fold. It is much easier to work from multiple offices and geographic locations. Organisations with tighter budgets are looking for greater workforce flexibility. Engagement © Copyright 2014 Daniel J Edelman Inc.

43. %0012!6 ,**00,+!6ǿ )+ Ȓ,0( Elance-oDesk is the world’s largest online workplace. More than 2.5 million businesses and 8 million freelancers tap into www.Elance.com and www.oDesk.com to work together via the Internet. As our increasingly connected and independent workforce goes online, talent—like software, shopping and communications before it—is shifting to the cloud. This shift is freeing professionals from set-time-and- place work, while also making it faster and easier for businesses to hire. Elance-oDesk is headquartered in Mountain View, California, with offices in San Francisco, California, and Oslo, Norway. Intelligent Engagement © Copyright 2014 Daniel J Edelman Inc.