Traditional notions of work are now being rethought, particularly with work being increasingly defined by what people do rather than where they do it. To benefit from new technologies and keep pace with innovation, organizations are increasingly loosening hierarchical structures, dispersing decision-making authority, and adopting startup-like qualities (Figure III). There is growing evidence that digital technologies are shifting labour markets toward more flexible and mobile working arrangements, with employment rising in categories grouped under “alternative work arrangements”.
Freelancing, self-employment, and temporary work, among other non-standard work relations, are expected to thrive under the structure provided by service apps on smartphones and digital platforms. The trend is set to stimulate the growth of the remote labour force globally, enabling employees to adopt a variety of flexible work models and employers to tailor hybridized labour pools. While changing perceptions about work and increasing technology penetration will eventually lead to mobile and virtual work options, remote flexible arrangements (with some office presence) are likely to remain the most common.
Digitalization of the workplace coupled with an increase in small and mid-sized enterprises (SMEs), demand for flexible workspaces, and inclination for innovative workplace cultures are spurring demand for space-as-a-service and revolutionizing the way people work today. Just as Japanese businesses famously modernized supply chains with the concept of just-in-time manufacturing, and the dot-com revolution transformed the global economy with e-commerce, the office communication landscape is evolving radically as businesses seek to rigorously manage costs and improve agility through more flexible work styles.
While such alternative working arrangements not only promote labour market participation, specifically for sectors traditionally excluded from job opportunities, their growing attractiveness also imply that an increasing number of highly educated professionals are opting to work as freelancers, which could shift the nature of informal employment in several emerging markets (e.g., Latin America, and Emerging Asia).
Frost & Sullivan estimates the total number of freelance workers to reach 564 million by 2025 – about 15.3% of the labour force – reflecting a compound annual growth rate (CAGR) of 6.6% from 2018 (Figure IV). More than half of these freelancers are expected to be based in Asia-Pacific, with Emerging Asia (India, Bangladesh, and Philippines in particular) contributing more than one-third of the total freelance workforce, whereas Africa and the Middle East are likely to have the smallest number of freelancers.
By 2025, developed economies (31% in Europe and 47% in North America) are forecast to have the highest proportion of their labour force engaged in flexible employment – many of whom are digital natives. These regions are likely to have in place network infrastructure, policies, and ecosystems to fully capitalize on future office communication patterns to cater to the flexible workforce.
Upwork and Freelancers Union recently revealed that 57.3 million people in the U.S. engaged in freelance work in 2017, contributing approximately US$1.4 trillion to the economy annually – an increase of nearly 30% from the year before1. Younger workers are driving the acceleration of the freelance workforce with almost half of working millennials freelancing, more than any other generation.
1 Individuals who engage partially or full-time in supplemental, temporary, project- or contract-based work: https://www.upwork.com/press/2017/10/17/-freelancing-in-america-2017/
Technology is a key enabler to flexible work models, with organizations increasingly connecting and collaborating remotely with freelancers and independent professionals through digital communication platforms. This is evident from research stating that companies supporting remote work benefit from 25% lower employee turnover than companies that don’t.
For employers, having a modern office communication environment is crucial to attracting and retaining talent, developing more engaged and productive employees, nurturing a culture of innovation, and staying ahead of the competition.
New tools and services transforming the traditional office space into a digital workplace could facilitate easier communication and more effective collaboration between employees, allowing businesses to stay agile, boost efficiency, and achieve higher productivity at a faster pace.
