INDEPENDENCE IN AMERICA CAMEO 2013 BOARD RETREAT JUNE 5TH, 2013 Carolyn Ockels: Managing Partner Steve King: Partner Emergent Research

Highly Interactive Session Overview and Profile of the Independent Workforce Income and Demographics Independent Worker Challenges How CAMEO and its Members Can Help SESSION OVERVIEW AND AGENDA

THE U.S. INDEPENDENT WORKFORCE CLOSE TO 17 MILLION Definition of Independent Worker: -21+ years old -Works 15+ hours a week -Job status is one of the following: Self-employed Fixed-term contract Independent consultant/freelancer Work through temp agency On-call arrangement Own business w/less than 5 employees Expected to grow to 23 million by 2017

Small Enterprise Mid Market Micro Businesses Main Street HOW INDEPENDENTS MEASURE UP WITH SMALL BUSINESS # of Firms 1.7M 550K 100K Number of Employees Including Owner US Census data 2010;, 2100; US BLS data 2011, 2012; Emergent Research estimates 3.6M Independent Workers (those working half-time or more) 17M 1

28 MILLION AMERICANS THINK THEY MAY BECOME INDEPENDENT OVER NEXT 2-3 YEARS

THE TRENDS DRIVING THE GROWTH OF THE INDEPENDENT WORKFORCE Traditional jobs harder to find Traditional jobs less attractive Technology making Independent work cheaper and easier Independent work perceived as viable; entrepreneurship seen as cool Demographic and social shifts –Encore careers –Portfolio careers –Growing interest in work/life flexibility –Shifting family structures Contingent Workers: % of U.S. Workforce 20% 0% 40%

THE MAJORITY OF INDEPENDENT WORKERS CHOSE THE PATH OF INDEPENDENCE

INDEPENDENTS FOLLOW THEIR PASSIONS… …AND VALUE FLEXIBILITY AND CONTROL OVER THEIR LIVES

MOST INDEPENDENTS SATISFIED WITH INDEPENDENCE

INDEPENDENT WORKERS PLAN TO STAY INDEPENDENT

MOST INDEPENDENT WORKERS EARN A SIGNIFICANT INCOME Overall *- $61,000 Gen Y - $35,000 Gen X - $51,000 Boomers - $84,000 Matures - $64,000 Contribution to Household Income * Median Gross Income % of IWorkers

65% are highly satisfied 43% plan on staying independent 15% plan on building a bigger business But … – 31% would rather have a traditional job – Only 32% say they will not go back to a traditional job – 25%-35% dislike independence GEN Y THE JOYS AND WOES OF INDEPENDENCE Gen YNot Gen Y Inability to Find Employment 32%8% Lost Job16%20% Offered Independent Work 29%19% Gen YNot Gen Y Trapped10%3% Bored11%2% Stagnating11%5%

Work to live; not live to work 75% highly satisfied – 13% satisfied 64% plan on staying independent – 6% plan on seeking FT job 12% plan on building a bigger business They’re artsy – About 50% of all independent artists, writers and performers are Gen X – 22% of Gen X independents describe themselves as artist/writer/performer GEN X CHOOSING INDEPENDENCE Gen xNot Gen X Chose Independence68%51% Lost Job13%22% Inability to find employment when entering job market 4%18%

68% are highly satisfied – 20% satisfied – Only 7% responded 5 or lower 71% plan on staying independent 11% plan on building bigger business 58% chose independence BABY BOOMERS TIRED OF WORKING FOR THE MAN …OR JUST CAN’T FIND A JOB BoomersNot Boomers Control schedule75%63% More flexibility70%61% Like being own boss68%53% Lack of politics54%41% BoomersNot Boomers Loss of job26%16% More friends working as independents 21%16% Plan on seeking FT Job 5%17%

MATURE INDEPENDENTS WORKING ON THEIR TIME AND TERMS 89% highly satisfied (74%) or satisfied (15%) 73% plan on staying independent – None plan on seeking a full-time job – 11% plan on retiring next 2-3 years 52% feel more secure as independents 54% work hours per week vs. 34% for non matures Much less concern about challenges than other cohorts 38% said wanted to work; 24% said needed to work Key ReasonsMatures Control schedule79% More flexibility63% Like being own boss57% Supplement Retirement56% ChallengesMaturesTotal Uncertain income stream 48%55% Worry about next job20%39% Concern about benefits27%37% Lack of job security21%36% I feel more secure working independently 52%39% Worried about the future 11%30%

In Most Ways, Women and Men Are Similar Skew Young; Women Are: – 58% of Millennials – 52% of Gen X – 44% of Boomers – 31% of Matures More Worried About Future – 36% of women vs. 25% of men Work Fewer Hours, Earn Less – Age major factor WOMEN FLEXIBILITY, IMPACT WomenMen Work/Life Flexibility 55%45% Able to Make Impact 43%32% Time with Children/Parents 22%4%

INDEPENDENCE IS NOT FOR EVERYONE AND MANY ARE UNHAPPY Based on Surveys, Interviews and Focus Groups we think: About 50% of independents are happy being independent About 25% are neutral About 25% are unhappy Key Satisfaction Drivers: Choosing independence Success/Income Length of time being independent Feel secure Confidence in skills

THE CHALLENGES OF INDEPENDENCE

KEY SUCCESS FACTORS Choosing Independence Viewing oneself as a business owner Spending time “running the business” and having the skills to do so A strong work related network Marketing and sales skills Confidence in skills and abilities Able to deal with lack of security

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