April 30, 2025 • 9 mins
In a continuation of our review of The Upwork Research Institute’s new Future Workforce Index, Dr. Gabby Burlacu reveals how and why independent skilled professionals are redefining the modern workplace. We explore four distinct models of independent work—and why they’re growing. The episode also compares aspects of freelance to full-time employment, revealing surprising advantages in earnings, satisfaction, and future-readiness. Plus, we examine how traditional talent models may be holding back both organizations and individuals. Whether you’re a business leader adapting your workforce strategy or a skilled worker navigating change, this episode is packed with actionable insights on building a more agile, empowered, and future-ready career or team.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:01):
(gentle upbeat music)
- Hello and welcome to "Workweek,"
the podcast where wetackle one big question
about the rapidly evolving workplace,
explore what the researchsays about the issue
and explain what it all means for you.
I'm Dr. Gabby Burlacu, Senior Manager
with the Upwork Research Institute,
or rather, what you'rehearing today are my thoughts
(00:22):
and ideas guided by insightsfrom the Research Institute
and brought to you by adigital proxy of my voice
that was created by ourteam with the help of AI.
In this week's episode,we're going to return
to the Future Workforce Index Report
published by the Upwork ResearchInstitute just last week.
So if you missed last week's episode,
I encourage you to pause now and catch up
(00:43):
so you don't miss some important context.
This week we're going tolook at data from the index
to challenge you to thinkmore deeply about what humans
and AI can create together.
In last week's episode,we discussed how the rise
of the freelance knowledge worker,
28% of knowledge workers today,is challenging organizations
to move away fromtraditional hiring approaches
(01:03):
to access the skills they need.
This week we are asking the question,
"What's behind the shift toindependent skilled work,
"and does that shifthave a larger meaning?"
Our research not only uncovered how
and why many skilled professionals
choose to work independently,
but also dug deeply into their experiences
and thought processeswhen it comes to work,
(01:24):
and we learned sometruly interesting things.
First, we learned these workersare not a homogeneous group.
Rather, they are a highlydiverse set of people
who are building independent careers
in a variety of different ways.
Specifically, we found four modes
that skilled independentprofessionals align with,
meaning they take on one
or more personas as theymanage their workload
and access opportunities.
(01:46):
The first mode we identifiedwas the business owner.
This is a freelancer
who approaches their workloadlike running a business.
They often manage aportfolio of multiple clients
and projects at once.
The second mode we notedwas the agency freelancer.
This person teams up withother independent professionals
to broaden the scope of their services.
The third mode was themanaged services freelancer.
(02:08):
These freelancers specialize
in providing functional managedservices to organizations
through an intermediary,
creating a blend ofstability and flexibility.
And finally, we identifiedthe AI-enabled freelancer
who positions themselves as a package deal
with AI-enabled tools embeddedinto their service delivery.
This mode, in particular,is poised to grow
(02:29):
with more freelancers saying they plan
to work this way in the coming five years.
These aren't mutuallyexclusive categories,
and many freelancersnavigate their business
through multiple modes.
At the same time, a smallsubset of these freelancers
are actually full-time employees as well.
Skilled moonlighters or peoplewho provide skilled services
or consulting alongsidetheir full-time work,
(02:51):
generate an average ofone-third of their income
through independent opportunities.
Each of these models offers a unique way
for skilled to navigate the workforce
while maintaining autonomyand career control.
And when we look acrossall these different modes
of working, we see someinteresting characteristics emerge.
For one thing, skilled freelancers
(03:12):
as a whole are highly educated,
nearly twice as likely tohave a postgraduate degree
as their full-time employee counterparts.
They also have strong specialization
and expertise such as AIdevelopment, marketing,
and creative design.
So why are knowledge workerschoosing to take the reins
of their own career,
leaving behind the supposed stability
(03:33):
offered by full-time employment?
What we're finding
is that traditional employmentmodels are under pressure,
and freelancers arefinding independent work
to be a reliable path to gaining control,
financial stability, and career growth.
This isn't just their imagination.
Our research suggestssome very good reasons
for professionals to consider freelance.
For example, skilled freelancers
(03:55):
tend to earn more thanfull-time employees.
The median 2024 earningsfor freelancers was $85,000,
surpassing their full-timeemployee counterparts
by six-and-a-quarter percent.
We also found 78% of skilledfreelancers to be satisfied
with their pay levels, asentiment shared by only 64%
of full-time employees.
(04:16):
Freelancers also found that their skills
were more in demand.
Fully, 88% of skilled freelancers
believe their skills aremore in demand than ever
compared to just 75%of full-time employees.
And whereas 82% of freelancers
say there are moreprofessional opportunities
available to them todayversus one year ago,
only 63% of full-timeknowledge workers say the same.
(04:39):
And that's because theseindependent professionals
have the right skills fora changing world of work.
Our data suggests thatindependent skilled workers
are more proficient notonly in using AI tools,
but also in the human skill sets needed
in an AI-empowered future.
They're stronger in criticalthinking, problem solving,
collaborating, and being creative
than their full-time employee peers.
(05:00):
And this illuminatesthe fundamental problem
with traditional talent models today.
They are relatively limitedand freelancers are proof
of what's possible without those limits.
But that begs the question,"What do we mean by limited?"
For starters, we can lookat the way people learn
and where they accesscontinuing education.
While full-time employeesunderstandably rely more
(05:21):
on formal organizational trainingfor continuing education,
freelancers have a wider variety
of learning sources available to them.
When it comes to AI, for instance,
they are more likely to be hands-on
and self-taught and to experiment.
Our research found
that nearly one inthree C-level executives
are uncomfortable with workers
looking outside the company's structure
(05:42):
to pursue developmenton key topics like AI.
But research has consistently shown
that traditional organizational learning
and development is a poor fitfor something as fast moving
and nuanced as AI
Another challenge limitingtraditional talent models
is the relative senseof control people want
over their work experience.
83% of skilled freelancers
(06:03):
say their work contributes positively
to their mental, emotionaland physical wellbeing.
Conversely, previous UpworkResearch Institute research
has found that 71% of full-timeemployees are burned out
and overwhelmed by their workload.
Having a sense of control,flexibility and ownership
are key motivators drivingpeople to freelance,
(06:24):
and so is the freedom to pursue work
that is personallymeaningful or interesting.
As we shared last week,
the number of skilled professionals
choosing to work independently
is probably going to grow,
with 36% of full-time workers now saying
the traditional work model
may not be working for me anymore.
(06:47):
And on that note, I wantto wrap this episode
as we always do by givingyou an actionable insight
and a reflection to consider
to help you navigate thisevolution in skilled work.
For business leaders, we talked last week
about the importance
of leveraging this growingindependent talent pool,
but this week let's also consider
how the practices within our organizations
might be limitingpeople, whoever they are,
(07:08):
from reaching their full potential.
Our people limited in terms of how
or what they're enabled to learn?
Are they barred from trying new tools
or technologies thatthey could have access to
and that could help them?
Are they forced to adapt to workflows
or processes that are inefficient
when a better way is possible?
Identify one factor within the workplace
(07:28):
that may be limiting your workers.
Because creating an environmentwhere people can learn,
thrive and perform is fundamental
to having skilled engagedtalent in the future of work.
For skilled workers, it isbecoming increasingly clear
that there's more than onepath to connect to growth
and earning opportunities.
If you are alreadyworking as a freelancer,
consider the ways you canarticulate to potential clients,
(07:51):
how you've channeled thefreedom to learn, grow,
and discover into better service delivery,
enabling you to better meet their needs.
If you work full-time
or in a more traditional work model,
consider whether there are partsof your own work experience
that make you feel limited in some way.
As you identify them,create an action plan
for how you might address them.
And if it's related toan organizational policy
(08:13):
or practice, consider sharingthem with your managers
so you can start to inspire change,
and create a work environment that unlocks
and amplifies your potential.
For both business leadersand skilled workers,
I wanna leave you with thesame reflection question.
The World Economic Forum reports
that in the next five years,
39% of worker skills willbecome transformed or outdated.
(08:35):
The workforce is changing,and that can frankly be scary,
but your response to these changes
doesn't have to happen all at once.
Rather, your re-skilling
and up-skilling journeycan be incremental.
So the question I wannaleave you with is this.
What one new skill canyou commit to learning
and practicing in the next three months?
Thank you for joining me ontoday's episode of "Workweek."
(08:56):
I'm Gabby Burlacu,
and if you found thisconversation insightful,
be sure to subscribe and sharethis episode with a friend.
The future of work is changing fast.
Let's navigate it together.
(gentle music)
(gentle upbeat music)
- Hello and welcome to "Workweek,"
the podcast where wetackle one big question
about the rapidly evolving workplace,
explore what the researchsays about the issue
and explain what it all means for you.
I'm Dr. Gabby Burlacu, Senior Manager
with the Upwork Research Institute,
or rather, what you'rehearing today are my thoughts
(00:22):
and ideas guided by insightsfrom the Research Institute
and brought to you by adigital proxy of my voice
that was created by ourteam with the help of AI.
In this week's episode,we're going to return
to the Future Workforce Index Report
published by the Upwork ResearchInstitute just last week.
So if you missed last week's episode,
I encourage you to pause now and catch up
(00:43):
so you don't miss some important context.
This week we're going tolook at data from the index
to challenge you to thinkmore deeply about what humans
and AI can create together.
In last week's episode,we discussed how the rise
of the freelance knowledge worker,
28% of knowledge workers today,is challenging organizations
to move away fromtraditional hiring approaches
(01:03):
to access the skills they need.
This week we are asking the question,
"What's behind the shift toindependent skilled work,
"and does that shifthave a larger meaning?"
Our research not only uncovered how
and why many skilled professionals
choose to work independently,
but also dug deeply into their experiences
and thought processeswhen it comes to work,
(01:24):
and we learned sometruly interesting things.
First, we learned these workersare not a homogeneous group.
Rather, they are a highlydiverse set of people
who are building independent careers
in a variety of different ways.
Specifically, we found four modes
that skilled independentprofessionals align with,
meaning they take on one
or more personas as theymanage their workload
and access opportunities.
(01:46):
The first mode we identifiedwas the business owner.
This is a freelancer
who approaches their workloadlike running a business.
They often manage aportfolio of multiple clients
and projects at once.
The second mode we notedwas the agency freelancer.
This person teams up withother independent professionals
to broaden the scope of their services.
The third mode was themanaged services freelancer.
(02:08):
These freelancers specialize
in providing functional managedservices to organizations
through an intermediary,
creating a blend ofstability and flexibility.
And finally, we identifiedthe AI-enabled freelancer
who positions themselves as a package deal
with AI-enabled tools embeddedinto their service delivery.
This mode, in particular,is poised to grow
(02:29):
with more freelancers saying they plan
to work this way in the coming five years.
These aren't mutuallyexclusive categories,
and many freelancersnavigate their business
through multiple modes.
At the same time, a smallsubset of these freelancers
are actually full-time employees as well.
Skilled moonlighters or peoplewho provide skilled services
or consulting alongsidetheir full-time work,
(02:51):
generate an average ofone-third of their income
through independent opportunities.
Each of these models offers a unique way
for skilled to navigate the workforce
while maintaining autonomyand career control.
And when we look acrossall these different modes
of working, we see someinteresting characteristics emerge.
For one thing, skilled freelancers
(03:12):
as a whole are highly educated,
nearly twice as likely tohave a postgraduate degree
as their full-time employee counterparts.
They also have strong specialization
and expertise such as AIdevelopment, marketing,
and creative design.
So why are knowledge workerschoosing to take the reins
of their own career,
leaving behind the supposed stability
(03:33):
offered by full-time employment?
What we're finding
is that traditional employmentmodels are under pressure,
and freelancers arefinding independent work
to be a reliable path to gaining control,
financial stability, and career growth.
This isn't just their imagination.
Our research suggestssome very good reasons
for professionals to consider freelance.
For example, skilled freelancers
(03:55):
tend to earn more thanfull-time employees.
The median 2024 earningsfor freelancers was $85,000,
surpassing their full-timeemployee counterparts
by six-and-a-quarter percent.
We also found 78% of skilledfreelancers to be satisfied
with their pay levels, asentiment shared by only 64%
of full-time employees.
(04:16):
Freelancers also found that their skills
were more in demand.
Fully, 88% of skilled freelancers
believe their skills aremore in demand than ever
compared to just 75%of full-time employees.
And whereas 82% of freelancers
say there are moreprofessional opportunities
available to them todayversus one year ago,
only 63% of full-timeknowledge workers say the same.
(04:39):
And that's because theseindependent professionals
have the right skills fora changing world of work.
Our data suggests thatindependent skilled workers
are more proficient notonly in using AI tools,
but also in the human skill sets needed
in an AI-empowered future.
They're stronger in criticalthinking, problem solving,
collaborating, and being creative
than their full-time employee peers.
(05:00):
And this illuminatesthe fundamental problem
with traditional talent models today.
They are relatively limitedand freelancers are proof
of what's possible without those limits.
But that begs the question,"What do we mean by limited?"
For starters, we can lookat the way people learn
and where they accesscontinuing education.
While full-time employeesunderstandably rely more
(05:21):
on formal organizational trainingfor continuing education,
freelancers have a wider variety
of learning sources available to them.
When it comes to AI, for instance,
they are more likely to be hands-on
and self-taught and to experiment.
Our research found
that nearly one inthree C-level executives
are uncomfortable with workers
looking outside the company's structure
(05:42):
to pursue developmenton key topics like AI.
But research has consistently shown
that traditional organizational learning
and development is a poor fitfor something as fast moving
and nuanced as AI
Another challenge limitingtraditional talent models
is the relative senseof control people want
over their work experience.
83% of skilled freelancers
(06:03):
say their work contributes positively
to their mental, emotionaland physical wellbeing.
Conversely, previous UpworkResearch Institute research
has found that 71% of full-timeemployees are burned out
and overwhelmed by their workload.
Having a sense of control,flexibility and ownership
are key motivators drivingpeople to freelance,
(06:24):
and so is the freedom to pursue work
that is personallymeaningful or interesting.
As we shared last week,
the number of skilled professionals
choosing to work independently
is probably going to grow,
with 36% of full-time workers now saying
the traditional work model
may not be working for me anymore.
(06:47):
And on that note, I wantto wrap this episode
as we always do by givingyou an actionable insight
and a reflection to consider
to help you navigate thisevolution in skilled work.
For business leaders, we talked last week
about the importance
of leveraging this growingindependent talent pool,
but this week let's also consider
how the practices within our organizations
might be limitingpeople, whoever they are,
(07:08):
from reaching their full potential.
Our people limited in terms of how
or what they're enabled to learn?
Are they barred from trying new tools
or technologies thatthey could have access to
and that could help them?
Are they forced to adapt to workflows
or processes that are inefficient
when a better way is possible?
Identify one factor within the workplace
(07:28):
that may be limiting your workers.
Because creating an environmentwhere people can learn,
thrive and perform is fundamental
to having skilled engagedtalent in the future of work.
For skilled workers, it isbecoming increasingly clear
that there's more than onepath to connect to growth
and earning opportunities.
If you are alreadyworking as a freelancer,
consider the ways you canarticulate to potential clients,
(07:51):
how you've channeled thefreedom to learn, grow,
and discover into better service delivery,
enabling you to better meet their needs.
If you work full-time
or in a more traditional work model,
consider whether there are partsof your own work experience
that make you feel limited in some way.
As you identify them,create an action plan
for how you might address them.
And if it's related toan organizational policy
(08:13):
or practice, consider sharingthem with your managers
so you can start to inspire change,
and create a work environment that unlocks
and amplifies your potential.
For both business leadersand skilled workers,
I wanna leave you with thesame reflection question.
The World Economic Forum reports
that in the next five years,
39% of worker skills willbecome transformed or outdated.
(08:35):
The workforce is changing,and that can frankly be scary,
but your response to these changes
doesn't have to happen all at once.
Rather, your re-skilling
and up-skilling journeycan be incremental.
So the question I wannaleave you with is this.
What one new skill canyou commit to learning
and practicing in the next three months?
Thank you for joining me ontoday's episode of "Workweek."
(08:56):
I'm Gabby Burlacu,
and if you found thisconversation insightful,
be sure to subscribe and sharethis episode with a friend.
The future of work is changing fast.
Let's navigate it together.
(gentle music)
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