Did you know that 48 per cent of the world is already self-employed?

The world has changed. That is a fact.

We have already seen major shifts in the way we live and work because more people are embracing independent work. But what does the rise of independent working mean within the context of larger, global shifts?

Let’s take a look at what’s going on now, with concrete examples from Singapore.

Independent doers

The changing workforce

The self-employed population is an extremely diverse group. Not only because their occupations are different; their circumstances and motivations differ greatly, and thus their challenges differ too.

So, when looking at the global self-employment rate of 48 per cent, it is important to note that this includes self-employment by choice as well as due to necessity.

In this article, I will dive deeper into those who are self-employed by choice, and I will refer to them as “Independent Doers”. Rather than focusing on their employment status, let’s look at some of their key traits and attitudes towards work.

Independent doers could include freelancers (e.g. programmers, creatives, editors, social media marketers), start-uppers (founders of start-ups and start-up teams), entrepreneurs, trainers/coaches, and many more.

Some general traits of an Independent Doer could be:

1. A purpose-driven self-starter

2. Game-changing personality

3. Global citizens able to operate anywhere in the world

4. Well-informed on global trends and developments

Independent doers actively choose independent work over traditional employment as they want better opportunities to apply their skills, to make an impact, and to have the flexibility of structuring their work based on their goals. Those who are highly skilled could even earn more when working independently.

As their work is purpose-driven, having fixed work structures (e.g. regular locations and hours) is not as important as working towards their goals. Many independent doers put in longer hours despite flexible schedules.

With millennials soon becoming a significant part of the workforce, it is no surprise that this new way of working is becoming increasingly popular. Millennials are bringing with them new attitudes and values to the workforce. To them, work is not just about making ends meet – it is about personal identity, purpose, and growth.

Also Read: 3 types of hobbies every growth-minded individual needs to cultivate

Since stability is no longer a priority, more are breaking away to chart their paths. For instance, those with creative talent are pursuing their passions and taking on less conventional careers in industries such as the arts, media and entertainment. In these industries, it makes sense to be involved in multiple projects on a freelance basis, to build up good portfolios and networks.

Even for those with more traditional full-time jobs, they are likely to work for multiple employers throughout their careers instead of sticking to one job.

And for those who find purpose in helping to make a change in the world, having the freedom to innovate, push boundaries and take action would naturally appeal to them and put them on the path towards becoming entrepreneurs.

Ultimately, being an independent doer is a mindset rather than a type of employment. With shifting values and attitudes already happening in the workforce, we will be seeing more and more people adopting this mindset and making the transition to independent work.

 The changing world

The driving force of technology

Aside from changing values and attitudes, technological shifts in the global economy are also enabling the rise of independent work.

The Fourth Industrial Revolution is upon us. The continued emergence and evolution of technology has caused a great impact on the way we live and work. We can find an abundance of information at our fingertips on the internet, connect with others instantly over social media, and buy almost anything through e-commerce.

More importantly, technology has helped grow the on-demand economy whereby consumers can connect to service providers and get their requests addressed in real-time.

Websites and applications like Upwork and Freelancer have fuelled the growth of freelance work, opening up opportunities for Independent Doers to meet clients, showcase their skills, collaborate with partners and more – without the traditional need for a corporate support structure.

In addition to the ease of finding projects, new software technology has also enabled Independent Doers to work and collaborate remotely. Useful tools such as Slack, Trello and Podio foster efficient and effective collaborations which can all take place online.

Technology has indeed been a major driving force behind many of the changes we experience today. Independent doers who can optimise the use of technology to aid them in their work will find themselves ahead of the curve.

The changing workplace

We all work differently

In response to the changing workforce and new ways of working, even corporate companies are re-inventing themselves to attract and retain talents. This is evident from key trends, namely – the transition from hierarchical to flat organisation structures, from fixed to flexible working hours, and from working in the office to working anywhere.

Co-working spaces are gaining popularity on a global level as they offer attractive alternative working arrangements. And moving from one co-working space to another is made easier today through solutions such as Doerscircle’s office pass (powered by Workbuddy), which allows members easy access to co-working spaces across different locations through monthly membership plans.

Even big, well-established companies are realising that in order to attract and retain talents in today’s world, they would have to re-invent themselves and move away from traditional structures.

Standard Chartered engaged WeWork to design and run one of their offices in Hong Kong, to foster innovative thinking, networking and learning amongst its staff.

Transforming the workplace from a traditional, corporate environment typical of a financial institution into a more laid-back setting similar to a co-working space speaks volumes about Standard Chartered’s efforts to embrace the workplace of the future.

Also Read: What makes investments in fintech and alternative lending in SEA promising?

Interestingly, multiple studies show increased productivity and job satisfaction as a result of these trends. As such, countries around the world are beginning to take concrete steps in efforts to improve workers’ welfare and productivity.

For instance, new legislation in 2020 will allow employees in Finland to decide when and where they work for at least half of their working hours. Australia and the UK are also adopting more flexible work arrangements.

Changing the workplace culture and physical environment is no easy feat, and it begins with recognising that we all work differently. As more millennials enter the workforce, governments and corporates need to start adopting new modes of working and to move in the direction as set by Independent Doers.

Rise of the independent doer in SouthEast Asia

Southeast Asia is an entrepreneurial hotbed

Southeast Asia’s economy has one of the highest growth rates in the world. Start-ups based in Southeast Asia have higher levels of investor confidence – tech companies have raised a total of US$24 billion since 2015. This is indicative of strong innovative and entrepreneurial energy in the region.

Furthermore, the internet economy is booming with 350 million Internet users living in the region, as reported in a study by Google and Temasek. By 2025, the internet economy is estimated to exceed US$240 billion, and 1.7 million jobs will be created for highly skilled professionals.

Just like in the rest of the world, digital marketplaces play a considerable role in the rapid growth of the freelance ecosystem in Southeast Asia. Platforms such as Workana and Payoneer are expanding to the region.

In 2018, the Philippines ranked fourth out of 200 countries in terms of membership on Freelancer, with 93,000 freelancers and employers using the site.

Although there are still many who are self-employed out of necessity in the region, it is worth noting that there is increasing demand for independent doers with more specialised skills and experiences such as in IT, marketing and finance.

According to the Q3 2018 employment index published by Monster, the fastest-growing freelance roles in Singapore, Malaysia and the Philippines are as follows[7]:

Source: Monster Employment Index Q3 2018 Report

Monster reports that the freelance economy will continue to grow in the coming years, with even traditional industries such as Engineering and Production starting to engage Independent Doers.

The booming internet economy has indeed unlocked many new opportunities for independent doers. With higher levels of investor confidence, we will likely be seeing more emerging independent doers willing to leap to start or scale their businesses.

Independent doers in Singapore

Challenges and support

As of 2018, the self-employment rate in Singapore is 14.6 per cent.

There have been more efforts in recent times to understand the steadily growing community of Independent Doers in Singapore, as more Singaporeans are choosing to take up independent work.

For instance, the Tripartite Workgroup on Self-Employed Persons was formed by the government in 2017 to investigate challenges faced by the self-employed through a series of public consultations.

The Infocomm Media Development Authority also conducted a study on media freelancers in Singapore to identify areas that could be improved to help media freelancers advance their careers.

To better support freelancers in the arts industry, the National Arts Council has created a dedicated platform providing resources related to financial planning, legal services, professional development, and more.

These government initiatives are certainly timely, and they represent a good start towards exploring new systems to help Independent doers in various spheres of the economy.

While we are moving in the right direction in recognising that more support is needed for independent doers, a deeper understanding and more targeted solutions would help to address their needs truly.

Independent doers in Singapore like elsewhere in the world face many practical challenges in their journey. They are responsible for every aspect of their careers, and that means having to manage a business on top of doing what they love.

Some essential areas which they would have to look into include office spaces, business solutions (e.g. financial management, data, CRM), healthcare, legal issues (e.g. IP rights, contracts) and many more.

They most often face significantly higher costs when purchasing solutions such as insurance, healthcare, mobile, or software plans.

Many would also find these issues complex and difficult to understand, or simply do not have the time to seek out information or advice. All in all, being an Independent Doer could feel very much like a solitary journey.

Let’s look at some common issues faced by Independent Doers by using Singapore as an example:

1. Healthcare and retirement

It has been observed that Independent Doers in Singapore lack healthcare and retirement savings.

Independent work could be unstable at times, especially if the monthly income of Independent Doers could vary greatly depending on the number of projects he/she is involved in.

One in four Singaporeans who are self-employed have not been contributing to their Medisave accounts, and hence are saving less for healthcare. To address this, a “contribute-as-you-earn” model, whereby independent workers will have small contributions paid to their MediSave accounts when they provide services to the government, will be rolled out beginning from 2020.

2. Loss of income due to illness or injury

Prolonged illness or injuries sustained during work could seriously jeopardise the career and livelihood of Independent Doers.

Many Independent Doers in Singapore are not covered by insurance plans that provide protection against loss of income.

3. Payment-related disputes

Independent Doers commonly face payment-related disputes, which arise out of the lack of proper, written contracts. Their terms of services may not be properly documented, and this could pose a challenge when disputes arise.

To address this, the government has established a set of guidelines on best practices for engaging freelanc…