Majority of contractors choose to join self-employed sector

(3 minutes to read)

Umbrella company contractors may have heard recent reports that claim the main reason for self-employment growth is due to workers being forced into the sector, as opposed to choosing this way of life.

The Association of Independent Professionals and the Self-Employed (IPSE) have responded to these reports and unsurprisingly, completely disagree.

Simon McVicker, Director of Policy and External Affairs, commented on the findings, “There is little evidence to suggest that the rapid growth in self-employment has been driven by people forced into this way of working.

“A small minority of unscrupulous companies may be offering a precarious form of employment without the rights that come with it. But research from the Department for Business, Innovation and Skills (BIS) shows that only 6 per cent of self-employed workers were asked to do this by their (then) employer. Of these, only half (3%) relied on their former employer for all or most of their work when actually starting, suggesting self-employment wasn’t a necessity.

He added, “The vast majority of the self-employed cite a number of positive motivations for working independently – according to research from BIS, more than three quarters said they found having more flexibility, independence and job satisfaction when working this way.

“IPSE’s own research looking at the UK’s 1.91 million freelancers strongly supports this. Survey data shows that almost nine in ten are satisfied or very satisfied with how they work – and only 2% are seeking an employee job in the foreseeable future.

“While the majority of the self-employed benefit from this way of working, it is right to address the problems more vulnerable workers may be facing. Being self-employed does come with the risk of having less job security, and this group are not afforded the same benefits as employees. The Government should be looking to plug these gaps to ensure workers are not exploited.

“As the number of self-employed workers continues to grow, it’s essential we don’t cast this entire group as vulnerable and instead focus on ways to help the self-employed to thrive.”


Daniele Cantello is an Contract Manager for Contractor Umbrella Ltd, one of the UK’s Most Respected Umbrella Companies. Learn more about Daniele on Google.


 

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