Portfolio career

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A portfolio career comprises a variety of roles rather than one job at a single organisation. It can be a career that combines multiple paid and/or voluntary roles. The philosopher and organisational behaviourist Charles Handy popularised the "portfolio" concept [1] in works like his 1994 book The Empty Raincoat. [2] Handy's recognition of the portfolio career-path came about when he realised that individuals would be required to develop portable skillsets to meet the needs of a fast-moving future workplace. [3] His prediction foresaw what is now known as the gig economy. [4]

Contents

In 2006 journalist Penelope Trunk wrote on her blog that the rise of portfolio careers came "as members of Generation X entered the workforce. Two-thirds of them were looking for an alternative to full-time employment as a more efficient path to self-discovery and finding the right career." [5]

Portfolio careers are often found in the creative industries where freelancing is the norm. [6] Economic conditions[ which? ] mean many are now[ when? ] actively choosing to pursue portfolio careers to make the most of their earning potential. [7] [ need quotation to verify ]

Advantages

Advantages of a portfolio career include work–life balance, job security, flexibility, variety, multiple income streams and the ability to pursue individual interest areas. [8]

Ben Legg, CEO of UK-based social enterprise The Portfolio Collective, said: "A portfolio career is much more resilient than having one permanent role. In addition to having multiple income sources, your work is always evolving, as old clients roll off and you win new ones." [9]

There are benefits for employers, too. Mike Bank, Director of FlexRoles.com, said: "Flex or Fractional roles offer numerous advantages for businesses operating in today's fast-paced, competitive environment... Portfolio professionals bring fresh perspectives and diverse experiences to the table. Their ability to work across different industries and projects fuels innovation, creativity, and outside-the-box thinking." [10]

Disadvantages

Disadvantages are the lack of stability, traditional career progression, fluctuation of earnings and a lack of identity. [11]

Herminia Ibarra, the Charles Handy Professor of Organisational Behaviour at London Business School, argues that the portfolio careerist is faced with the problem of identity. "There is no easy label, no shorthand. Inevitably, one resorts to explaining oneself with a laundry list, when the culturally appropriate answer is what the psychologist Kenneth Gergen called the progressive narrative: a story of hard work and linear ascent culminating in a recognisably top role." [12]

Scale

The Centre for Research on Self Employment, [13] a London-based think tank, estimates that 250,000 UK workers define their work as a portfolio career. [14] A study by the Henley Business School determined that in the United Kingdom 25 per cent of workers had a side job. [15] Ben Legg, CEO of UK-based social enterprise The Portfolio Collective, believes this number is likely to be in the millions by 2030. [16]

Some 45 per cent of working Americans report having a side job, making them portfolio careerists. [17] In the United Kingdom 60 per cent of students and graduates said they had a side job and 43 per cent needed the extra income to pay their rent. [18]

Portfolio careers may become more common as the world economy and job market work to recover from the COVID-19 pandemic. [19]

Issues

Sean Smith, a retired vice-principal, argues that "a new economy that requires aspirational young people to effectively become captains of their own cottage industries will require schools to think very differently". He believes that schools will need to redefine how they view work readiness and change the expectations of young people as they prepare for work. [20]

Tara Fenwick, Emeritus Professor of Professional Education in the School of Education at the University of Stirling, thinks "workers may need to educate clients about the nature of portfolio work; and employers who contract to portfolio workers must take more responsibility for negotiating fair contracts that are sensitive to overwork and unfair time pressures". [21]

Nomenclature

Young portfolio careerists are sometimes known as slashies or solopreneurs. [22] [23]

See also

Related Research Articles

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Temporary work or temporary employment refers to an employment situation where the working arrangement is limited to a certain period of time based on the needs of the employing organization. Temporary employees are sometimes called "contractual", "seasonal", "interim", "casual staff", "outsourcing", "freelance"; or the words may be shortened to "temps". In some instances, temporary, highly skilled professionals refer to themselves as consultants. Increasingly, executive-level positions are also filled with interim executives or fractional executives.

Freelance, freelancer, or freelance worker, are terms commonly used for a person who is self-employed and not necessarily committed to a particular employer long-term. Freelance workers are sometimes represented by a company or a temporary agency that resells freelance labor to clients; others work independently or use professional associations or websites to get work.

Self-employment is the state of working for oneself rather than an employer. Tax authorities will generally view a person as self-employed if the person chooses to be recognised as such or if the person is generating income for which a tax return needs to be filed. In the real world, the critical issue for tax authorities is not whether a person is engaged in business activity but whether the activity is profitable and therefore potentially taxable. In other words, the trading is likely to be ignored if there is no profit, so occasional and hobby- or enthusiast-based economic activity is generally ignored by tax authorities. Self-employed people are usually classified as a sole proprietor, independent contractor, or as a member of a partnership.

Guru.com is a freelance marketplace. It allows companies to find freelance workers for commissioned work. Founded in 1998 and headquartered in Pittsburgh, Guru was initially known as eMoonlighter.com.

Contingent work, casual work, or contract work, is an employment relationship with limited job security, payment on a piece work basis, typically part-time that is considered non-permanent. Although there is less job security, freelancers often report incomes higher than their former traditional jobs.

Green jobs are, according to the United Nations Environment Program, "work in agricultural, manufacturing, research and development (R&D), administrative, and service activities that contribute(s) substantially to preserving or restoring environmental quality. Specifically, but not exclusively, this includes jobs that help to protect ecosystems and biodiversity; reduce energy, materials, and water consumption through high efficiency strategies; de-carbonize the economy; and minimize or altogether avoid generation of all forms of waste and pollution." The environmental sector has the dual benefit of mitigating environmental challenges as well as helping economic growth.

Fiverr is an Israeli multinational online marketplace for freelance services. Fiverr's platform connects freelancers (sellers) to people or businesses looking to hire (buyers), encouraging a wide range of services in a free market. Fiverr takes its name from the $5 asking price attached to all tasks when the company was founded in 2010 in Tel Aviv, though many sellers now charge more.

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<span class="mw-page-title-main">Gender pay gap</span> Average difference in remuneration amounts between men and women

The gender pay gap or gender wage gap is the average difference between the remuneration for men and women who are working. Women are generally found to be paid less than men. There are two distinct numbers regarding the pay gap: non-adjusted versus adjusted pay gap. The latter typically takes into account differences in hours worked, occupations chosen, education and job experience. In other words, the adjusted values represent how much women and men make for the same work, while the non-adjusted values represent how much the average man and woman make in total. In the United States, for example, the non-adjusted average woman's annual salary is 79–83% of the average man's salary, compared to 95–99% for the adjusted average salary.

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India had 15 million independent workers or freelancers in 2020, with industries like IT, finance, HR and design hiring people on a project basis. 70 percent of freelancers from India reported working exclusively as freelancers, with 48 percent of them dedicating 30 hours or less per week to their work. In a report of (National Institution for Transforming India) NITI Aayog has estimated that India’s gig workforce or Freelancing will grow up to 2.35 crore by 2029-30. In 2020-21 the same was at 77 lakh. Out of this 26.6 lakh gig workers were from sales and retail trade.

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<span class="mw-page-title-main">Side job</span> Additional job providing extra income

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References

  1. Scanlan Stefanakos, Victoria (14 June 2013). "Why I Love Having A 'Portfolio Career' (And You Could, Too)". Forbes. Retrieved 26 September 2020. [...] economist and management writer Charles Handy, who popularized the idea, described in his book The Empty Raincoat:
    'Going portfolio means exchanging full-time employment for independence [...].'
  2. Handy, Charles B. (1994). The Empty Raincoat: Making Sense of the Future (revised ed.). London: Random House (published 1995). ISBN   9780099301257 . Retrieved 26 September 2020.
  3. "How to... become a portfolio worker". Personnel Today. 2003-05-06. Retrieved 2020-11-14.
  4. "Unknown". www.ft.com.(subscription required)
  5. Trunk, Penelope (4 July 2006). "The Portfolio Career: To Find Fulfillment Try Simultaneous Careers". Penelope Trunk. Retrieved 23 August 2023.
  6. Quick, Miriam (23 July 2019). "Portfolio career". BBC Worklife. Retrieved 26 September 2020. Portfolio careers are common in the creative industries, where freelancing is normal and low incomes often make a second job a necessity.
  7. Quick, Miriam (2019-07-19). "Portfolio career". BBC Worklife. Retrieved 2020-11-14.
  8. Layton, Rachael (2017-06-05). "The pros and cons of a portfolio career". Women's Agenda. Retrieved 2020-11-14.
  9. "Interview". portfolio-collective.com. Retrieved 2020-11-13.
  10. FlexRoles. "What is a Flex / Fractional Role?". FlexRoles.com. Retrieved 2023-08-14.
  11. "The Pros and Cons of a Portfolio Career". Eluceo. 2020-11-01. Retrieved 2020-11-14.
  12. "Unknown". www.ft.com.(subscription required)
  13. "Home | CRSE". www.crse.co.uk.
  14. "The Freelance Project and Gig Economies of the 21st Century" (PDF). crse.co.uk. Retrieved 2020-11-13.
  15. "The Side Hustle Economy" (PDF). assets.henley.ac.uk. Retrieved 2020-11-13.
  16. "What Is A Portfolio Career?". portfolio-collective.com. 11 August 2020. Retrieved 2020-11-13.
  17. Dixon, Amanda. "Survey: Nearly 1 In 3 Side Hustlers Needs The Income To Stay Afloat | Bankrate.com". Bankrate.
  18. "Two in five young Brits rely on 'side hustle' to make ends meet". finance.yahoo.com.
  19. "Creative Ways to Thrive in a Bleak Job Market". Rewire. September 11, 2020.
  20. "Are we preparing pupils for the gig economy?". Tes.
  21. "Contradictions in portfolio careers: Work design and client relations". www.researchgate.net. 2006. Retrieved 2020-11-13.
  22. Guardian Staff (April 23, 2019). "The rise of the slashie: a glamorous new way to work – or the ultimate grind?". the Guardian.
  23. "It's no fun". FT Alphaville. 2016-05-25. Retrieved 2020-11-14.