FREELANCE, REDEFINED. | www.bothpro.com

Changing the way WORK worksErik Vonk, Founder & CEO B0TH

www.bothpro.com

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2

Synopsis

THEN

Exchanging competencies for income (working) is facilitated through employment

Employment attaches work/life enablers to the employer

NOW

25% of the skilled workforce is deployed on a project-basis

Length of a “permanent job” = < 3 years

Employment is a rigid remnant of the Industrial Revolution

False sense of security

Framework for work/life enablers

3

Synopsis

Mismatch in old design and current application of

employment hinders flexible work arrangements

Work needs a new platform

Flexwork needs regulatory support

4

Dilemma

Unfair trade-off between

IndependenceWork / Life

Enablers

5

Unthinking the Past

THEN

Generalists and team members

Exchange control over destiny for entitlements and status

NOW

Specialists are in higher demand

Independence and mobility are key to utility

WHAT you do is more important than WHERE you do it

Job security replaced by income security

6

Fundamental Realities

Economic resources transition from fixed

resources to on demand resources:

Facilities and real estate

Capital

Skills (people)

The Economy

7

Companies increasingly look for

functional specialization

Companies increasingly synchronize

expenses to revenues

Companies

Fundamental Realities

8

Out-sourcing reigns

Projects /gigs are replacing employment

Enterprises contract for deliverables

Contracts are performance oriented and

shun entitlements and benefits

The Concept of Work

Fundamental Realities

9

Retirement takes on another meaning

Either by choice or

Forced by

economic realities

An Aging Workforce

Fundamental Realities

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Generational Comparison

Matures Boomers Gen X Gen Y

Defining Idea Duty Individuality Diversity Innovation

Style Team Player Self-absorbed Entrepreneur Solo-preneur

Reward me because

I’ve earned it I deserve it I need it I can do it

Technology Rotary phones Touch tone phones

Cell phones I-phones

Work is Obligation Adventure Challenge Self-fulfillment

On the edge Save the world Save the country

Save yourself Save the planet

Source: Yankelovich Monitor

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Mega Trends

Information technology

Demographics

Ageing population

Changing (work) values, norms and preferences

Job security has been replaced by income security

International labor and migration rules

Enterprises source skills globally

Globalization

Internet and broadband enhance networking

Promote Flexible Work Arrangements

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Mega Trends

Shift in balances of power

Nations face increasing need to share focus on global

commons (i.e. terrorism, climate change, depleting

resources, etc), humanity (health, poverty, digital divide, etc)

and regulatory approaches

Dependency on oil is causing transfer of wealth

Workforce specialization

Fosters mobility

What you do is more important than where you do it

Global financial structure

System overhaul re-defines deployment of talent

Promote Flexible Work Arrangements

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The Evolution of Work

1492 – 1800 countries globalized

1800 – 2000 companies globalized

2000 – 2040 individuals globalize

Control Over Destiny

Worker’s identity,

status , security

and destiny tied

to worker

INDEPENDENT

WORKER CULTURE

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The Workforce of One is Here

WSJ – Feb 8, 2010How to Succeed in the Age of Going SoloBy Richard Greenwald

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The Workforce of One is Here

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Employer Attitudes

Focus on core competencies

Need for flexible cost structure

Continuous access to high quality talent

Compliant legal, regulatory and tax framework

Minimized liabilities

Fair pay for flexible work

Screened / background checked workers

To be considered a desirable place to work

The Freedom to Chose for Flexibility

The Freedom from Fear of Losing Control

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Individual Desires

Focus on marketing skills and applying competencies

Be paid in a timely manner

Continuity in health, retirement and financial benefits

Clear and compliant legal, regulatory and tax framework

Be unburdened from administrative, tax, legal, accounting

and record keeping obligations

Be part of a professional community and support network

The Freedom to Chose for Independence

The Freedom from Fear of Losing Work/Life Enablers

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Contractor Compliance

IRS/G

VT IC

Qu

alific

atio

ns

YES

MAYBE

NO

1099

Vendor

Vendor

W-2

W-2

Solo

Biz

Personally

Independent

Continuously

deployed

Bill Rate

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Personal Independence

1099

1099/W-2 W-2

$

Continuity in Engagements

Workforce

of One /

Solopreneur

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Important Aspects of Work

EmploymentTemporary

employment1099

Arrangement

WorkforceOf

ONE

Clear, compliant, legal, regulatory and tax framework YES YES NO YES

Payment in a timely manner YES YES MAYBE YES

Permanence/continuity of work/life enablers NO NO NO YES

Support infrastructure, accounting, tax, legal, technical resources YES PARTIAL NO YES

Replaces work arrangement with vendor relationship NO NO NO YES

Supports independent exchange of competencies for income NO NO YES YES

Always independentalways In control NO NO NO YES

Cost efficient model(fees, taxes, structure, etc.) NO NO YES YES

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Work Needs a New PlatformArrangement Platform Relationship

Permanent Job W-2

Employer / Employee

B2BVendor /

Client

The B2B Platform is the Missing Link

Flex Work

Transition

Experts

Interim

Executives

Pseudo W-2

1099

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Analogy of Platforms

LIVING PLATFORM WORK PLATFORM

RENTAL PROPERTY• Apartment• Home

All amenities are semi-permanent and shared

W-2• The “Permanent” Job

HOTEL ROOM• Motel• Inn & Suites• Resort

All amenities are available between check in and check

out

PSEUDO W-2• Payroller• Staffing Firm• Contractor

NO SHELTER• Stay with family/friends

• No support• No status• Risky

1099• No engagement

platform

HOME OWNERSHIP• Condo• Home

YOU own and CONTROL your amenities and your property

B2B• DBA• S-Corp• LLC

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Predictions

Increase in self-employment

Over-supply

Pressure on remuneration

Increasing job mobility

Continued shift in income generation activities

Functional specialization will gain further importance

Increase in civic servants as a % of the total workforce

Health & retirement benefits will favor individual plans

Baby Boomers dominate the workforce (%)

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Conclusions

Multiple engagement platforms is a must

Support independence and independents

Flexible engagements can serve as a base for loyalty

Watch compliance

Community building

FREELANCE, REDEFINED. | www.bothpro.com

Changing the way WORK worksErik Vonk, Founder & CEO B0TH

www.bothpro.com

.