Intuit Study Shows Average Worker Relies on Three Income Streams
MOUNTAIN VIEW, Calif.–(BUSINESS WIRE)–
The 40-hour work week may be alive and well, but it looks nothing like
it did a generation ago – at least not if you’re part of the growing
ranks of people dipping a toe in the on-demand economy.
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A new study from Intuit Inc., “Dispatches
from the New Economy: The On-Demand Workforce,” shows that on-demand
economy workers average 40.4 hours per week, but rely on three different
sources of income to make up their entire paycheck. The typical work
week includes a mixture of: on-demand work (34 percent), a traditional
full or part-time job (30 percent), contracting and consulting (19
percent), and running a business (14 percent).
The new data comes from a study from Intuit Inc. (Nasdaq:
INTU) and Emergent
Research that examined people working via eleven on-demand economy
and online talent marketplace companies. Study participants included: Deliv,
Field Nation, Fiverr,
Partners, OnForce, Uber,
Upwork (formerly Elance-oDesk), Visually,
Wonolo, and Work
“The on-demand economy is reshaping the way people earn a living, take
control of their careers and support their families. From drivers, to
designers, to management consultants – people have more opportunities
than ever to supplement existing income streams or to take the leap into
being their own boss,” said Alex Chriss, vice president and general
manager of Self-Employed Solutions at Intuit. “But we must also
recognize the shadows that have emerged. The benefits infrastructure of
a generation ago was not built to accommodate the reality of work today.
At Intuit, we’re committed to building new solutions that deliver
certainty and stability for self-employed people who are stitching
together different income streams.”
On-demand Work Supplements Existing Income
The study shows that the on-demand economy is playing a unique role in
the labor market by providing people with flexible opportunities to
augment their existing work:
63 percent of on-demand workers indicate that “the primary reason I
work in the on-demand economy is to supplement my income.”
Other primary reasons for working in the on-demand economy include:
- “Creating and controlling my schedule” (46 percent)
- “A desire for greater work/life flexibility” (35 percent)
- “Being my own boss” (32 percent)
Only 11 percent reported turning to on-demand work “because of an
inability to find a job.”
High Satisfaction With On-demand Work
The study found that most people working in the on-demand economy are
satisfied, while key challenges focus on finding enough predictable work.
91 percent of people working on-demand jobs report that they like
controlling decisions about where, when and how they work.
70 percent of on-demand workers are satisfied with their work
On-demand workers are concerned with finding steady income, and cited
the following challenges:
- Getting enough work (57 percent)
- Not enough predictable income (50 percent)
- Getting paid the amount I feel I deserve (41 percent)
- Lack of job security (22 percent)
On-demand Workforce Demographics
People working in the on-demand economy are well represented across
Millennial, Gen X and Baby Boomer generations. The vast majority are
well educated, and men outnumber women.
- Male: 66 percent
- Female: 34 percent
- Millennials (18-34): 39 percent
- Gen X (35-51): 36 percent
- Baby Boomers (52-68): 24 percent
- Seniors (69+): 1 percent
- Less than high school: 1 percent
- High school/GED: 12 percent
- Some college or 2-year degree: 36 percent
- 4-year college degree: 31 percent
- Graduate or professional degree: 20 percent
- White: 64 percent
- African American: 12 percent
- Hispanic: 10 percent
- Asian/Pacific Islander/Indian sub-continent: 7 percent
- Other: 7 percent
Intuit’s QuickBooks Self-Employed
Feb. 1 is the deadline for businesses to send 1099-MISC forms to
self-employed people. For many people working in the on-demand economy,
this represents the first time they are confronted with a new set of tax
obligations. Intuit’s QuickBooks
Self-Employed product provides tax relief by helping on-demand
workers manage business and personal finances, handle taxes throughout
the year and meet compliance requirements.
Self-Employed Tax Bundle allows self-employed users to file faster
by exporting their Schedule C to TurboTax
Online. QuickBooks Self-Employed users find an average of ,809 in
potential tax savings per year.
Intuit offers the product directly to on-demand entrepreneurs through
partnerships with many of the leading on-demand economy marketplaces.
Long-term Growth of Self-Employment
research from 2015 showed that an estimated 7.6 million Americans
will be regularly working as providers in the on-demand economy by 2020,
more than doubling the current total of 3.2 million. The rise of the
on-demand economy is part of a broader long-term growth trend in the
contingent workforce, which has grown from 17 percent of the U.S.
workforce 25 years ago, to 36 percent today, and is expected to reach 43
percent by 2020.
A total of 4,622 workers who find work opportunities via the platforms
provided by the participating partner companies completed an online
survey between September 11 and October 1. The results were weighted to
reflect the proportion of workers in each of the following segments:
Drivers/Delivery, Online Talent Marketplaces and Field Service/Onsite
Talent. The weights were developed using earlier survey work that sized
the on-demand economy. The largest weighted share of on-demand worker
respondents from any single company is 16 percent, with most partner
companies providing less than 10 percent of the respondents. Please find
study highlights here.
About Intuit Inc.
Intuit Inc. creates business and
financial management solutions that simplify the business of life for
small businesses, consumers and accounting professionals.
Its flagship products and services include QuickBooks® and
TurboTax®, which make it
easier to manage small businesses
and tax preparation and filing.
Mint.com provides a fresh, easy and
intelligent way for people to manage their money, while ProSeries®
and Lacerte® are Intuit’s
leading tax preparation offerings for professional accountants.
Founded in 1983, Intuit had revenue of .2 billion in its fiscal year
2015. The company has approximately 7,700 employees with major offices
in the United States, Canada,
the United Kingdom, India
and other locations. More information can be found at www.intuit.com.
Intuit and the Intuit logo, among others, are registered trademarks
and/or registered service marks of Intuit Inc. in the United States and
About Emergent Research
Emergent Research is a
research and consulting firm focused on identifying, analyzing and
forecasting the key demographic, social, technology and economic trends
and shifts impacting business and society. Emergent Research partners,
Steve King and Carolyn Ockels, are co-authors of the Intuit
2020 Report and the Intuit
Future of Small Business Report Series.
Source: Intuit Inc.