Traditional Employment Remains Most Popular Choice Despite Recent Popularity of Gig Economy
Independent contractors, otherwise known as gig workers or freelancers, are self-employed individuals who are hired by businesses on a project basis.
TORONTO, Nov. 29, 2023 (GLOBE NEWSWIRE) -- The desire of employees and job seekers for more flexibility has upended the workforce and caused worry amongst companies that they will lose employees to the gig economy, but traditional employment remains the most popular among both employers and job seekers according to a recent survey from The Harris Poll commissioned by Express Employment Professionals.
Independent contractors, otherwise known as gig workers or freelancers, are self-employed individuals who are hired by businesses on a project basis. Oftentimes, the service provided by gig workers is arranged through an online platform or mobile application, for example, through a food delivery service app. These workers receive payment for their services, are responsible for handling their own taxes, and are not eligible for benefits.
On the other hand, “T4 workers” are considered employees of a company, and their employer withholds income taxes, employment insurance, Canadian pension plan deductions, among others. T4 employees are also typically eligible for benefits such as health and dental.
Close to half of Canadian employers (44%) say they are worried they will lose employees to independent contracting positions, with employers reporting they’ve lost 15% of their employees, on average, to this type of work in the past two years alone.
Despite this concern, many companies employ independent contractors, with more than a quarter (27%) reporting they currently employ them and another 33% who report they do not currently but have in the past.
But most companies that use independent contractors say they only do so when they aren’t able to fill open full-time positions (71%).
A strong preference among employers remains for full-time T4 employees, with 79% of companies saying they plan to hire full-time employees by the end of the year. Only a quarter of companies (26%) plan to hire part-time employees and slightly under a quarter (22%) plan to hire contract or temporary employees.
Traditional employment is also favoured by job seekers. When it comes to what types of positions they are willing to accept, a large majority of job seekers prefer full-time (73%), a much smaller proportion are open to part-time positions (38%), and only a quarter are open to contract or freelance opportunities (25%).
It is no surprise then that a large majority of employers (76%) and job seekers (73%) believe gig economy work will never replace traditional employment.
“Traditional employment will always remain popular because it provides flexibility with security, allowing individuals to pursue their passions while enjoying stability,” said Bill Stoller, Express Employment International CEO. “It fosters a sense of unity and belonging, making employees feel like valued members of a team rather than solitary contributors, and allows them to experience the camaraderie and shared purpose that comes with working alongside colleagues in a permanent long-term job.”
Survey Methodology
The Job Insights survey was conducted online within Canada by The Harris Poll on behalf of Express Employment Professionals between June 8 and June 22, 2023, among 507 Canadian hiring decision-makers (defined as adults ages 18+ in Canada who are employed full-time or self-employed, work at companies with more than one employee, and have full/significant involvement in hiring decisions at their company). Data were weighted where necessary by company size to bring them into line with their actual proportions in the population. Respondents for this survey were selected from among those who have agreed to participate in our surveys. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within + 4.6 percentage points using a 95% confidence level.
The Job Seeker Survey was conducted online within Canada by The Harris Poll on behalf of Express Employment Professionals from June 13 and June 26, 2023, among 507 adults ages 18 and older who are employed or not employed but looking for work and looking for a new job. Data are weighted where necessary by age, gender, race/ethnicity, region, education, marital status, household size, household income and propensity to be online, to bring them in line with their actual proportions in the population. Respondents for this survey were selected from among those who have agreed to participate in our surveys. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within + 5.6 percentage points using a 95% confidence level.
If you would like to arrange for an interview to discuss this topic, please contact Ana Curic at
(613) 858-2622 or email [email protected].
About Bill Stoller
William H. "Bill" Stoller is chairman and chief executive officer of Express Employment
International. Founded in Oklahoma City, Oklahoma, the international staffing franchisor
supports the Express Employment Professionals franchise and related brands. The Express franchise brand is an industry-leading, international staffing company with franchise locations in the U.S., Canada, South Africa, Australia and New Zealand.
About Express Employment Professionals
At Express Employment Professionals, we’re in the business of people. From job seekers to client companies, Express helps people thrive and businesses grow. Our international network of franchises offers localized staffing solutions to the communities they serve across the U.S., Canada, South Africa, Australia and New Zealand, employing 579,000 people globally in 2022 and 10 million since its inception. For more information, visit ExpressPros.com/CA.
