Building a Culture for 1099 Workers
On Redefining Work Culture For the New Millennia
I was at the UN a few years ago listening to a talk on cultural differences. A gentleman from South America (I don’t remember his precise nationality) was talking about how different cultures perceive of self-identity. He pulled a well-dressed young man up to the stage and asked him to introduce himself. The young man said, “Hey, my name is Dan, and I’m an analyst at Goldman Sachs.” The South American gentleman pointed out that Dan’s introduction wasn’t the norm for many cultures around the world. In certain cultures, for example, folks identified themselves by their parents. A different way Dan might have introduced himself would be, “I’m Dan, son of Eric and Diane, grandson of George and Martha.” It’s a very American thing, the notion that our identities are defined by what we do.
But our society is putting us through an identity crisis.
The rise of the new “1099 economy” challenges the very idea of employment. We’re in an interesting era, where on-demand startups are delighting customers all around the nation, but inevitably, are really rattling ideals that are heavily embedded in our culture.
Our society really values this thing we call a “job.” And we’ve been raised to feel entitled to the things that a job affords us.
- Stability (the 9 to 5)
- Benefits (the health, the dental, the 401k)
- Structured Growth (there is a ladder to climb)
Consequently, being an independent contractor (“1099”) encompasses the opposite of stability and progress. The 1099 is widely recognized as a temporary and disposable worker, and in traditional workplaces, this is mostly accurate.
In 2006, the last time the federal government counted, the number of independent and contingent workers — contractors, temps, and the self-employed — stood at 42.6 million, or about 30% of the workforce. (Source)
1099's are on the rise, and employers need to do their part in redefining what it means to be one.
How Startups Can Change the Meaning of 1099's
The handful of on-demand startups have begun to reshape the lives of workers. They’re pitching the life of a 1099 as a positive one — one that values the scarcity of time, the freedom of the individual to make elective choices indefinitely, and one that allows fluidity between a “9 to 5” and an enjoyable form of side income. The monikers for 1099's are rather upscale-sounding, entrepreneurial, and dignified (e.g., Uber Partners, Handy Professionals).
In a sense, these descriptors for the new 1099 worker are not just marketing speak, they’re achievable. We’re moving in the right direction, as companies who have succeeded in the creation of new 1099 economies create significant value adds to workers.
The key tenets of the new 1099 work life are quite attractive:
- The employer acts as an agency to connect you with clients. Volume of work is controlled solely by you (the new 1099). In contrast, traditional 1099's are picked up and dropped on a need-to-keep basis.
- Technology enables you autonomy, to pick up and work as you please without much employer interfacing. In contrast, traditional 1099's still interface with employers as a regular employee would.
- Mobility within, and between, organizations is possible. You can realistically, and practically, juggle multiple “employer” (1099) relationships, with some companies allowing movement toward higher tiers of commission with a predictable structure.
The New Culture for 1099 Economies
We’re fostering a new definition of “working class.” An unstructured work life tailored to the needs of parents, young adults, and those who are traditionally employed, is a progressive and positive thing. However, there are right and wrong ways to execute, and the law should quickly adapt to new conventions. 1099 startups are steadily changing the landscape of the job market. Legislation desperately needs a nuke and pave.
Workers of the new 1099 economy should need protection from only the following:
- Inability to earn a living wage due to an unjust commission split.
- Inability to decline work at will.
- Employers who prohibit them from working for multiple employers simultaneously in order to support a living wage.
Perhaps, in the near future, the way we self-identify as a culture will shift over to newer ideas. The new 1099 economy is breeding jacks of all trades, eliminating a class of blue collars, and creating a new kind of entrepreneur.
It’s an optimistic view, and we’ve certainly got a long way to go, but the more of us that see the potential of where we could be, the closer we get to where we want to be.
Vivian Xue is the co-founder and CEO of Pamper.
