As we say goodbye to 2017, it is time to take a collective deep breath and reflect on the past year. 2017 was defined by profound changes, challenges, and inspiring achievements—especially with regard to enterprise software and the freelance economy. It's prediction season and before we can look ahead to 2018, we have to see how well our 2017 predictions panned out.
Last year’s predictions were pretty spot on:
- Trump is a boon to the freelance economy. CHECK -rollback of regulation means more companies are engaging freelancers
- Uber loses more cases but makes no change. CHECK - Changing CEO’s doesn’t count
- Death of 50% by 2020. BIG CHECK - no one is saying this anymore
- Agreement on what we call this economy. HUGE MISS - I still read about everything from the gig economy to liquid workforce to on-demand to freelance!
- The corporate freelance tidal wave begins - MINI CHECK - Corporations everywhere are embracing freelance, but tidal wave was a bit much.
These trends will all continue throughout 2018 - the upcoming year poses compelling opportunities and excitement and more opportunity to prove our powers of prediction!
So bring on 2018...
The theme for 2018 is trust. The last twelve months have seen seismic cultural shifts in politics and entertainment, the fallout from security breaches at Equifax, and the manic swings of Bitcoin. The public is left exhausted and wary of just about everything. The resulting mindfulness will impact the 57+ million people who freelance in some form or fashion and the thousands of businesses around the world looking for new and creative ways to empower their extended workforce. Enterprises, workers, and customers all benefit from a transparent system that values and promotes integrity.
So, without further ado, here are my 5 predictions for the freelance economy in 2018:
1. Cybersecurity Scrutiny: Every week of 2017 brought a new cybersecurity revelation. Russia hacked the DNC, China hacked the DOD, and internet privacy appears to be DOA. The new year will continue this trend. In the wake of the Equifax and Uber hacks, a major trusted company or government agency will concede that they too have been hacked. Something businesses can do immediately is to only use platforms with rigorous security standards. SOC 2 isn’t required for a freelancing platform, but in 2018 smart companies will decide that SOC2 compliance is an essential for conducting business and protecting their most sensitive data.
2. Data Will Rule: Next year, vendor management systems (VMS) and HR management information systems (HRMIS) will better connect the dots and talk to each other seamlessly. The integration of these technologies empowers enterprises to not only track when and where a worker is, but also the volume and frequency of work, satisfaction levels, on-time percentages, hourly rates, other key data points. These granular details will help businesses and workers eliminate inefficiencies and streamline workflows while improving the quality of SLAs and customer satisfaction.
3. 1099 Workers’ Comp Revolution: The employer-worker dynamic will forever change in 2018 as businesses forgo government regulation and protect themselves through mechanisms like WorkMarket’s 1099 workers’ compensation. Antiquated laws and attitudes about the freelance economy are giving way to the reality of independent contracting as a mainstream way of life. Both employers and 1099 contractors will enthusiastically embrace insurance policies that protect businesses and individuals from the consequences of workplace accidents and injuries.
4. 34 is the new 50: A few years ago the conventional labor analyst’s go-to-take was that “50% of the workforce will freelance by 2020”. As we called last year, this has stopped, but what will take its place? What is the composition of the workforce going to be? There is a complex equation around cost, IP, business process, regulation, institutional knowledge and many other factors. The outcome of the equation determines your labor force mix between freelance, temps and W2. In 2018 people will start to understand that without fundamental regulatory reform few things change the labor equation and the 34% range that has held the last few years is here to stay.
5. Enterprises Embrace workOS: In 2018, enterprises will demand that freelancer engagement is automated, centralized, and intelligent. From worker procurement to vetting, compliance, drug testing, payments, and the spectrum of local legal requirements, enterprises will seek a single source of truth on a user-friendly, comprehensive platform. The next twelve months will see a significant rise in companies—from Nokia and Walmart to Accenture and P&G—adopting workOS to organize their workforces and manage productivity.
And there you go. I hope you are looking forward to the next year as much as I am. Between AI, blockchain, and whatever Elon Musk is up to—automation and digital technology aren’t just changing the modern enterprise, but are impacting everyday people’s lives. With a mobile device anyone can join the workforce, and take command of their destiny. Happy New Year!
