Monday, 26 January 2015

Having a boss could be bad for you: Freelancers are happier and earn more


Working for yourself could be the secret to happiness, a new report from Brighton University’s Business School has suggested. 

It said the nation's freelancers are happier, primarily because they don't have a permanent boss and so don’t have to face criticism or unfair demands. Nor do they have to battle it out with colleagues to get ahead, and they actually take home a fatter pay check.  

Researchers said that it was the ideal lifestyle, allowing people to work from home and a variety of other locations, and work only for themselves. 

"For many, freelancing is emerging as the ideal lifestyle, especially in creative and digital industries where people can work from any location, including home, and which demand high levels of innovation," Dr Jonathan Sapsed, who headed the report, told the Sunday Times. 

In recent years, the number of self-employed people in Britain has swelled, as the UK leads western Europe for self-employment. In August it reached the highest level since records began, with 4.6 million people or 15 per cent of the workforce working for themselves, according to official figures. 

Dr Sapsed said, "What we found was a very positive picture where freelancers act more like entrepreneurs. They are professional, business-like, good at self-promotion and managing multiple brands." 

Ed Vaizey, the culture, communications and creative industries minister, said the findings of the study showed the vitality of the freelance economy. 

‘The self-employed play a key role in driving the culture of innovation in the creative and digital industries and are a vital part of Britain’s economic growth,’ he said. 

This reinforces the view that we're headed towards a dramatically different economy in which most workers will be independent contractors. Freelancers will work on demand for whoever needs their services rather than for fixed periods of time for a single employer.  

As The Economist describes, workers will be on a platform that matches them with customers and provides verification, security and payment systems. This is the world of Uber and will increasingly be the world of just about everything: handyman services, cooking, laundry, shopping, scheduling, personal training, coding, doctoring, lawyering, bossing and creating everything from television ads to Ebola suits. As these services spread, they will create the "on-demand economy" or the "platform economy."  

Mary-Anne Slaughter, CEO of The New American Foundation, believes The Economist missed a deeper transformation, however: a set of forces that will reshape not only ways of working but also patterns of consumption. The clue to this blind spot, she says, lies in the following sentence: "The on-demand economy is unlikely to be a happy experience for people who value stability more than flexibility." For middle-aged professionals and everyone else who must combine breadwinning and caregiving, flexibility is the Holy Grail. 

Flexibility allows lawyers, businesswomen, bankers, doctors and many other professionals to continue to advance in their careers or at least stay in the game while being the kind of parents they want to be. As a result, the economy will become on-demand by the providers of services as much as by the consumers. 

The most important dimension of this flexibility is that it allows workers to have both a job and time to do other things they care about. Now you can spend your money on experiences, which psychologists have long known make us happier than material things. Those experiences for young and old include sports, travel, the arts and the ability to make all sorts of things. It will be an economy that allows people time to both make a living and do what they most care about. The lucky ones care about their work not just as a source of income but for its own sake, as something that we enjoy doing and/or are deeply committed to as part of our life's purpose. Even so, however, we are one-dimensional and boring if we care only about work. 

Thus, working freelance can improve our quality of life whilst also ensuring a better work life balance – and that has got to be a good thing.

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