The Human Capital of the Freelancers and Their Satisfaction with the Quality of Life

Polona Tominc,Ivona Huđek,Karin Širec

doi:10.3390/su132011490

Abstract

Digital technologies are underpinning a wide range of products, services, processes, and business model innovations that are significantly transforming industries, organizations, and society. They are increasingly permeating every aspect of our daily lives. In this paper, we looked at the challenges of digitalization, leading to a new way of working in the market and new business models, such as the gig economy. Individuals are becoming more mobile and self-directed in their careers, as opposed to traditional careers. We investigated the demographic characteristics of the new, growing group of self-employed, so-called freelancers, at the national level in Slovenia and investigated the relationships between human capital and their subjective (job and career satisfaction, life satisfaction) and objective success (income satisfaction). The survey was conducted among 200 freelancers (respondents). The empirical results show that most Slovenian freelancers working from home work in professional, scientific, and technical occupations; are between 35 and 44 years old; have completed the second level of tertiary education; work more than 40 hours per week; and have 16 years or more of work experience. To explore the quality of life of freelancers, empirical analysis showed that human capital factors are important for the success of a new career as a freelancer. The results show that freelancers’ human capital factors (education and experience, skills, and training) positively influence subjective and objective success. Using structural equation modeling, we also confirmed that human capital has a greater impact on freelancers’ subjective success (life satisfaction, career satisfaction) than on objective success (income satisfaction), suggesting that job and life satisfaction should be considered an important resource that freelancers rely on to determine their quality of life.

Highlights

Published: 18 October 2021In the last two decades, new and contemporary occupational concepts have emerged in relation to general developments in information technology and the reorganization of work arrangements in the wake of digitalization
Since freelance careers represent a flexible form of working in which work is done remotely, we focused on the dimension of overall life satisfaction to examine how such a work arrangement affects quality of life
As a result of economic, technological, and social changes influenced by digitalization, traditional full-time employment is increasingly shifting to nonstandard forms of employment, such as freelancing

Summary

Introduction

Published: 18 October 2021In the last two decades, new and contemporary occupational concepts have emerged in relation to general developments in information technology and the reorganization of work arrangements in the wake of digitalization. Individuals are expected to become increasingly mobile and self-determined in terms of their careers, in contrast to traditional careers characterized by hierarchical advancement, organizational career management, and low mobility [1]. These flexible work schedules are often referred to as nonstandard, and are performed by independent contractors called freelancers. We aim to examine the role of this particular type of entrepreneurial category of self-employment and their quality of life in terms of subjective (job and career satisfaction and life satisfaction) and objective (income satisfaction) success. Different jobs and occupations (careers) and working conditions are important aspects of quality of Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations

Methods

Results

Conclusion