on demand workforce surveythe on demand workforce is the future of the american economy (top 2 box)...
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This document contains confidential information for use by TD Ameritrade Holding Corporation and its subsidiaries.
January 2019
Examining the new version of the American Dream
1
On Demand Workforce Survey
1/30/2019
Table of contents
1. Methodology……………………………….……….. 3
2. Work Is Getting Re-Worked…………..…..……… 4
3. Free Range Mentality………................................ 11
4. Dollars & Sense………......................................... 21
2
3
Methodology
• Full-time Freelancers – identified as self-employed full-time
• Side Hustlers – identified as employed full-time by a traditional company, but also working another part-time job as a contractor, consultant or freelancer
• Traditional Work – identified as employed full-time by a traditional company, but not having employment outside that job
Full-time Freelancers
(n=220)
This survey was conducted online within the United States by The Harris Poll on behalf of TD Ameritrade from September 28 - October 3, 2018, among 2,143 U.S. adults ages 18 and older. The Harris Poll is separate from and not affiliated with TD Ameritrade, which is not responsible for their services or policies. Key populations include:
Side Hustlers
(n=218)
Traditional Work (n=975)
About TD Ameritrade Holding Corporation
TD Ameritrade provides investing services and education to more than 11 million client accounts totaling approximately $1.2 trillion in assets, and custodial services to more than 7,000 registered investment advisors. We are a leader in U.S. retail trading, executing an average of approximately 900,000 trades per day for our clients, more than a quarter of which come from mobile devices. We have a proud history of innovation, dating back to our start in 1975, and today our team of 10,000-strong is committed to carrying it forward. Together, we are leveraging the latest in cutting edge technologies and one-on-one client care to transform lives, and investing, for the better. Learn more by visiting TD Ameritrade’s newsroom at www.amtd.com, or read our stories at Fresh Accounts. Brokerage services provided by TD Ameritrade, Inc., member FINRA (www.FINRA.org)/SIPC (www.SIPC.org). About The Harris Poll
The Harris Poll is one of the longest-running surveys in the U.S., tracking public opinion, motivations and social sentiment since 1963. It is now part of Harris Insights & Analytics, a global consulting and market research firm that strives to reveal the authentic values of modern society to inspire leaders to create a better tomorrow. We work with clients in three primary areas; building twenty-first-century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. Our mission is to provide insights and advisory to help leaders make the best decisions possible.
On Demand Workers (n=438)
Employees have lost trust in employers
5
WORK IS GETTING RE-WORKED
Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143
Compared to 10 years ago… % total
Most Americans believe that employers are becoming less loyal, making employees more expendable
56%
Employers are less loyal to employees
50%
Employees are more expendable
38%
Employers are less trustworthy
Therefore employees are less loyal
6
WORK IS GETTING RE-WORKED
Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143
Compared to 10 years ago… % total
And the burden it on them to become more like “CEO of 1” – responsible for their own income, and retirement
48%
Employees are less loyal to employers
33%
Employees are more responsible for their own
income, beyond salary
51%
Employees are more responsible for their own
savings / retirement
94%
Making work a more significant component of personal identity
Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143 7
WORK IS GETTING RE-WORKED
More than half say their work is a “major part of their identity”
“My work is a major part of my identity” (Top 2 box)
54% Total
67% On Demand Workers
70% Side Hustlers
Leading many to opt out of traditional paths and experiment with on demand
8
WORK IS GETTING RE-WORKED
Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143
Which of the following work arrangements most appeals to you?
37% 26% 38%
Millennials Want It All
Freelance or “on demand” job
A combination of both
Traditional work at a corporate job
64% of Americans would ideally like to include some form of freelancing in their careers
44% would ideally have both freelance and traditional work, compared to only 25% that want to freelance full-time.
Millennials are especially likely to choose freelancing flexibility over traditional corporate employment
9
WORK IS GETTING RE-WORKED
Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143
84%
74%
72%
57%
53%
75%
71%
65%
54%
48%
16%
26%
28%
43%
47%
25%
29%
35%
46%
52%
Would you rather…?
Work a 9 to 5 corporate job for 40 years Work 80 hours a week freelancing for 20 years
Millennials
Gen X
Young Boomers
Old Boomers
Silent Generation
Millennials
Gen X
Young Boomers
Old Boomers
Silent Generation
Work a 9 to 5 job and pursue passions on your own time Make work your passion and work around the clock
In fact, On Demand is seen as the vehicle to achieve the modern American Dream
10
WORK IS GETTING RE-WORKED
Freelancing is the modern version of the American Dream (Top 2 box)
60% The on demand workforce is the future of the American economy (Top 2 box)
56%
Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143
On Demand Workers 71%
Traditional Workers 57%
On Demand Workers 64%
Traditional Workers 54%
This is especially true for those who have already joined the On Demand Economy
Less than half say “freelancing is overrated” (45%), including 32% of on demand workers and 47% of traditional workers.
Over 1/3 of Americans would rather work harder longer to be able to define their career and pursue their passions
12
FREE RANGE MENTALITY
Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143
On Demand Workers
39% 39% Work 80 hours a week freelancing for 20 years
61% Work a 9 to 5
corporate job for 40 years
56%
39% 33% Make work your passion and work around the clock
67% Work a 9 to 5 job and
pursue passions on your own time
47%
39% 32% Determine my own annual income via freelance work
68% Have a concrete
salary from an employer
50% On Demand Workers
On Demand Workers
They also crave the ability to determine their own income
% Total % Total % Total
Would you rather…?
Those who do decide to take the plunge report higher quality of life
13
FREE RANGE MENTALITY
Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143
Happy With Work
Stressed With Work
84%
74% 77%
41%
61% 59%
Full-time freelancers experience the highest levels of happiness, with the lowest levels of stress
Full-time freelancers Side hustlers Traditional workers
Traditional workers
Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143
Side hustlers enjoy their hustles but feel they are getting spread too thin
14
FREE RANGE MENTALITY
Happy With Work
Stressed With Work
84%
74%
41%
61% 59%
They also report working 20 more hours each week than the average American
Full-time freelancers Side hustlers
84% of side hustlers are happy with their side hustle, while only 36% are stressed with their side hustle.
For the love of the hustle
Average work week (in hours)
29h Total
49h Side Hustlers
77%
Most begin side hustling for financial reasons
15
FREE RANGE MENTALITY
Source: The Harris Poll on behalf of TD Ameritrade (October 2018); Side Hustlers n = 216
59% of Americans expect to have a side hustle at some point in their life
26%
29%
32%
36%
38%
42%
44%
To dispel fears about my future finances
To pursue a passion
To save for retirement
To increase my nest egg
To meet my current spending
To save for major purchases
To pay off debt
Side Hustlers
Why are you working a side gig in addition to your full-time job?
Ladies Who Save
Women are 20% more likely than men to hustle to pay off debt
Side hustlers are more likely to see their work as a tool for financial security
16
FREE RANGE MENTALITY
Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143
Full-time freelancers, on the other hand, see the financial opportunity to control their own income
32%
52%
47%
37% Side Hustlers
Full-time Freelancers
Security: To Protect Myself Financially Opportunity: To Pursue My Dreams
Which of the following best describes the reason you joined the on demand workforce?
Freelancers are more lifestyle-focused than monetary on the other hand
17
FREE RANGE MENTALITY
Source: The Harris Poll on behalf of TD Ameritrade; Full-time Freelance n=220
The top reason for choosing to gig full-time is increased autonomy, followed by balance
13%
28%
37%
38%
50%
There was no other option for employment
To pursue more fulfilling/meaningful work
To increase my income
To improve work-life balance
For increased flexibility/independence
Full-time Freelancers
Why did you join the full-time On demand workforce?
55% Gen X
39% Millennials
Freelancers also tend to be more values-driven
18
FREE RANGE MENTALITY
Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143
60% of Full-time Freelancers have turned down a project that didn’t align with their values, compared to 59% of Side Hustlers and 43% of Traditional Workers
44%
33%
56%
67% On Demand Workers
Traditional Workers
Get a 20% raise but have to work at a job you hate
Take a 20% pay cut to work at a job you love
Would you rather…?
Overall, on demand workers have a higher appetite for flexibility
19
FREE RANGE MENTALITY
Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143
One-third of Americans are planning for high turnover in their work in the short- and long-term
expect to have at least 10 jobs over the course of their careers (Top 2 box)
33%
On Demand Workers 41%
Traditional Workers 33%
Have been at current work less than 2 years (Top 2 box)
32%
On Demand Workers 37%
Traditional Workers 26%
Plan to stay at current work less than 2 years (Top 2 box)
30%
On Demand Workers 34%
Traditional Workers 25%
Even traditional workers are looking for increased flexibility at the office
20
FREE RANGE MENTALITY
Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143
74% of Americans agree that Corporate America needs to become more flexible to compete with freelancing opportunities
11%
12%
28%
27%
45%
35%
38%
33%
44%
52%
15%
29%
32%
30%
48%
49%
53%
55%
62%
59%
12%
20%
25%
34%
42%
51%
57%
62%
66%
67%
Childcare provided on site
Financial advising included in benefits package
Time shifting
Unlimited vacation
The ability to work remotely
Option to work a 4-day workweek with 10-hourdays
Performance bonuses
Employer contributions to retirement plans
Excellent medical insurance coverage
Flexible benefits packages
Traditional Workers Side Hustlers Full-time Freelancers
Which of the following benefits would make you most likely to want to work at a traditional corporation?
23% Parents
13%
20%
22%
27%
11%
23%
25%
28%
11%
14%
22%
41%
Lack of a safety net
Irregular work schedule
Lack of traditional benefits
Financial uncertainty
Traditional Workers Side Hustlers Full-time Freelancers
Financial uncertainty is the top barrier to joining the on demand workforce
22
VIEWS ON FINANCES & RETIREMENT
Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143
But freelancers worry most about about the lack of benefits
What is the biggest drawback to joining the on demand workforce?
Agree an economy driven by on demand work is not sustainable long-term (Top 2 box)
57%
On Demand Workers 49%
Traditional Workers 60%
All workers desire to retire on a similar timeframe
23
VIEWS ON FINANCES & RETIREMENT
Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143
36% 26% 39% A combination of both
Pursue intermittent retirement
38% On Demand
34% Traditional
Somewhat or very likely to…
36%
Take a 1-year unpaid sabbatical
37% On Demand
31% Traditional
31%
36%
69%
64% On Demand Workers
Traditional Workers
Fully retire at age 75
Retire and continue part-time work at age 60
Would you rather…?
On demand workers are more likely to leverage their flexibility to create mini-retirement breaks
24
VIEWS ON FINANCES & RETIREMENT
Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143
On demand work helps bridge the gap from full-time work into retirement (Top 2 box)
69%
On Demand Workers 77% Traditional Workers 70%
69%
76%
79%
73%
76%
81%
Retire earlier
Continue to feel I have a purpose
Stay active and keep social
Traditional Workers On Demand Workers
Somewhat or very likely to work part-time in retirement to…
And many view on demand work as a tool to transition into retirement Both current on-demand and traditional workers equally believe this will help them stay active, maintain purpose and even achieve full retirement sooner
9%
10%
13%
14%
19%
52%
58%
63%
8%
8%
11%
14%
16%
59%
67%
73%
Stress
Fear
Anxiety
Worry
Concern
Rest
Enjoyment
Relaxation
Traditional Workers On Demand Workers
Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143 25
VIEWS ON FINANCES & RETIREMENT
Which of the following do you most associate with retirement?
Posi
tive
Nega
tive
Associated with retirement planning (On Demand Workforce)
1 Complicated (41%)
2 Stressful (39%)
3 Empowering (35%)
4 Approachable (31%)
5 Simple (20%)
6 Isolating (4%)
On Demand workers are more stressed about the prospect of retiring 66% of On Demand workers say it’s harder to plan for retirement as part of the On Demand workforce
3%
11%
18%
16%
12%
19%
14%
13%
17%
2%
7%
18%
19%
19%
27%
28%
31%
51%
1%
6%
22%
23%
24%
23%
18%
20%
59%
SEP IRA
Self-directed IRA
Roth IRA
Traditional IRA
Traditional pension plan
Investment / brokerage account(s)
Single-participant 401(k) plan
Health Savings Account (HSA)
Employee-sponsored 401(k)
Traditional Work Side Hustlers Full-time Freelancers
On demand workers have less choices available to them to participate in retirement plans
Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143 26
VIEWS ON FINANCES & RETIREMENT
Do you have any of the following retirement savings plans?
There are retirement offerings available that meet my needs (Top 2 box)
Full-time Freelancers 60%
Side Hustlers 69%
Traditional Workers 71%
Though slightly more likely to choose SEP and Self-Directed IRAs
Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143 27
VIEWS ON FINANCES & RETIREMENT
Freelancers are looking for retirement allies, especially on saving for retirement and investing
19%
25%
33%
35%
38%
41%
Planning for income interruptions
Debt
Saving for important life events / major purchases
Investing
Healthcare costs
Saving for retirement
Full-time Freelancers
Which of the following are the biggest aspects of financial planning that you need help managing?
expect financial companies to provide products and services that appeal to the on demand workforce (Top 2 box)
69%
On Demand Workers 74%
Traditional Workers 66%
55% Millennials
49% Millennials
53% Millennials
44% Millennials
Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143 28
VIEWS ON FINANCES & RETIREMENT
Freelancers are also looking for financial companies to provide education Education on financial best practices is a higher priority than funding or other types of support
32%
45%
46%
47%
59%
Partnering with co-working spaces
Providing funding for entrepreneurial ventures
Sponsoring freelance and on-demand communities
Education on business best practices
Education on financial best practices
Full-time Freelancers
How do you believe financial institutions can support the on demand workforce?
expect financial companies to help educate the on demand workforce when it comes to saving and investing (Top 2 box)
67%
On Demand Workers 75%
Traditional Workers 65%