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Meet the 4 types of Gen Z freelancers and their secret weapon

Kelly MonahanPh.D., is the CEO and Director of the Upwork Research Institute and the author of How behavioral economics influences management decision making: a new paradigm.

Generation Z is poised to overtake Baby Boomers in the job market, signaling a seismic shift in today's job market. This is the fastest growing generation of workers, with 17.1 million entering the workforce in 2023. By 2030, Generation Z is expected to make up 30% of the workforce -American work, according to Johns Hopkins University.

Generation Z has developed a distinct worldview shaped by their shared experiences, but they bring a rich tapestry of perspectives and values ​​to the workforce. Our latest study of nearly 1,100 Gen Z workers in the United States shows a widespread and critical shift, as Gen Z abandons conventional nine-to-five jobs for more diverse and flexible independent careers.

What truly sets Generation Z apart is their break from conventional career trajectories. 53% of Gen Z professionals surveyed said they are opting for freelance work, with more than half (53%) of Gen Z freelancers doing freelance work for at least 40 hours per week. This significant trend can be attributed to several factors, including a broader ambition for freedom, control and autonomy in their professional lives.

A more diverse and dynamic modern career

With so many people opting for more independent career opportunities, it's no surprise that Gen Z values ​​flexibility and inclusiveness in their work environment, with 70% favoring flexible schedules and 64% seeking exempt environments. limitations of age, race or gender expectations. The shift to self-employment among Generation Z reflects not only their pragmatic approach to professional fulfillment, but also their adoption of new, distributed ways of working that align with their values.

However, Generation Z is not a monolith. In fact, different types of independent careers among Gen Z, uncovered by research, highlight a rich tapestry of career motivations and aspirations that go beyond simple financial stability.

Portfolio careerists: As the predominant group (comprising 39% of Gen Z freelancers), portfolio careerists leverage their specialized skills across diverse clients and industries, seeking both autonomy and deeper purpose in their work.

Independent consultants: Representing 26%, this cohort appreciates the flexibility that freelancing offers, allowing them to fit their work schedules around their personal lives.

Temporary workers: Although smaller in number (at 7%), this group uses self-employment to balance caregiving tasks while maintaining authenticity in their professional role.

At the Moonlight: 24% of our respondents consider self-employment primarily as a way to supplement their income.

Gen Z business founders: The smallest group at 3%, they are driven by a desire for total control over their career and financial independence.

Understanding these various motivations is crucial for companies looking to innovate and remain competitive. By aligning their organizational structures and recruiting strategies with the unique values ​​and expectations of each type of freelancer, companies can not only attract top talent, but also foster a work environment that maximizes productivity and satisfaction. This strategic alignment becomes a key driver for building a resilient and adaptable workforce model, which is particularly important in the context of an ever-changing labor market.

Generation Z embraces Generation AI

The research findings revealed another crucial aspect about Gen Z freelance talent: their growing adoption of generative AI. As many as 61% of Gen Z freelancers integrate AI into their workflows, demonstrating a higher rate of technology integration than their full-time counterparts, of whom only 41% do so. This preference also highlights Gen Z's proactive approach to leveraging cutting-edge technologies, not only to boost their own productivity and market competitiveness, but also to differentiate themselves in a crowded field.

Additionally, this trend presents a unique advantage for businesses. Engaging with AI-savvy Gen Z freelancers allows companies to avoid the time-consuming and often costly process of training existing employees. Notably, 39% of these freelancers have already obtained AI certifications, equipping them with skills immediately beneficial for projects requiring advanced technological applications. Access to these up-to-date, AI-savvy freelancers provides businesses with a flexible and efficient way to accelerate their own adoption of new technologies.

The shift to self-employment among Generation Z presents undeniable implications for organizations seeking to thrive in a changing job market. With the baby boomer generation expected to retire at a faster rate than new entrants from Generation Z, to remain competitive, companies must understand where the next generation of talent is concentrated and reshuffle their structures accordingly. To attract the best talent, employers will need to adapt to new decentralized ways of working, promoting adaptability and innovation.

Creating an inclusive culture is also imperative to attracting and retaining Gen Z talent. When companies create environments where talent can show their authentic selves, freelancers and full-time employees are free to bring diversity of thought and experiences at their work. Organizations that prioritize openness and authenticity create environments where diverse perspectives flourish, enriching the quality of work and fostering innovation. In this way, business leaders can position their organization to thrive in an era defined by the evolving preferences and behaviors of Generation Z.

It is clear that there is a paradigm shift in the modern workforce, characterized by a move away from traditional employment models towards more flexible and empowered career paths. From the diverse modes of self-employment adopted by Generation Z to the adoption of cutting-edge technologies such as AI, it is clear that this generation is fundamentally reshaping the dynamics of work.

By embracing the talents and preferences of what might aptly be called the “independent generation,” organizations can position themselves for success in an era defined by innovation, flexibility, and inclusiveness.

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