Does the American workforce need a new “social contract” to accommodate such burgeoning trends as gig workers? Or is that contract already taking shape?

That’s the question raised by a survey of U.S. managers by the Aspen Institute's Future of Work Initiative, the Markle Foundation, Burson-Marsteller and Time magazine.

The research found that, while the majority of employers still prefers to manage full-time workers, it’s a slim majority — just 56 percent. Slightly more — 58 percent — said they believe full-time employees offer greater value to the company over the long term.

But that mindset may be becoming passé. Nine in 10 say they regularly use or would use independent contractors for specific purposes — including saving money on employee costs by reducing the amount at stake in the payroll budget in benefits and taxes.

And many see what’s happening as a revolution of the workplace.

“Sixty-two percent of all employers believe that the on-demand economy is a completely different way of doing business and 52 percent say the on-demand economy is creating more opportunities for workers by bringing more wage-earning opportunities to more people,” the report says.

Perhaps more significantly, 97 percent of those who use contract workers are satisfied with their performance — even though many still say they are somewhat concerned about the lack of loyalty among such workers.

“The consensus that held the 20th century social contract together is coming apart,” says Bruce Reed, co-chairman of the Aspen Institute's Future of Work Initiative.

“While companies prefer full-time employees, more and more are using independent contractors to reduce costs, and two-thirds say providing those workers benefits is someone else's responsibility. We need a 21st century social contract that works for everyone by making it easier for employers to share its responsibilities in investing in workers and easier for all Americans to take more benefits with them from job to job.”

Findings from the survey

Specifically, here are the top findings from the survey:

Sixty-seven percent of respondents say their company limits the number of contingent workers in favor of full-time employees.
Sixty percent report using contingent workers.
Of those who use contract labor, 57 percent, expect to use more in the future.
Seventy percent of all employers predict that more companies and organizations will move toward a more on-demand labor model.
Seventy-nine percent of employers believe offering benefits to employees is a critical component of attracting talent — a strong majority, yet notable because 21 percent apparently don’t think benefits matter in the talent acquisition process.

The survey asked employers about their attitudes toward offering benefits, training and other “perks” to contract workers. The response:

Eighty percent of employers who hire independent contractors offer health care benefits to full-time employees, but only 17 percent offer those same benefits to independent contractors.
Eighty percent of all employers offer paid vacation to full-time employees, but only 13 percent offer these benefits to independent contractors.
Sixty-six percent said they should not be responsible for providing benefits to independent contractors.
Fifty percent don't think they should be responsible for providing training or education to independent contractors.
Twenty-two percent of employers believe workers themselves should be responsible for providing benefits.
Eighteen percent believe private companies that help workers manage/gain benefits should be responsible.
Nine percent say it's the government's responsibility.

Instant Insights /

Slight majority of managers values full-time workers over contractors

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