Header logo
Log in
Hero image Dowload generic
Free to All

Working Well For Yourself

What makes for good self-employment? Building on the wider debate about good work – sparked by the publication of the 2017 Taylor Review of Modern Employment Practices – in this report we set out to uncover what exactly makes for good work for the UK’s 4.8 million self-employed.

1 hour, 8 minutes
Share

Executive Summary

This report seeks to address the question ‘what makes for good self-employment’? Building on the wider debate about good work – sparked by the publication of the 2017 Taylor Review of Modern Employment Practices – we set out to uncover what exactly makes for good work for the UK’s 4.8 million self-employed. Asking the self-employed directly for their views, we identified four key factors that determine the quality of their work. 

1. Pay 

This includes both the amount people earn and how regularly they are paid. While some choose self-employment to increase their earning potential, in some self-employed categories people actually make less than their employee counterparts. However, the relationship between income and happiness levels is more complex. A low income can be a major cause of dissatisfaction, but above a certain level, earning more doesn’t seem to further improve wellbeing.

The variable nature of self-employed earnings is a more common concern for the self-employed, particularly when it makes it difficult for people to access financial products or government benefits like Universal Credit. The problems the self-employed face because of low or variable incomes are often also exacerbated by poor payment culture. There are many reports of clients paying invoices late – and even not paying them at all. This is something which needs to be tackled to improve the working lives of the self-employed. 

2. Client relationships 

For most self-employed people, the key type of social interaction at work is with their clients. We found that in most cases these are predominantly positive and a source of satisfaction for the self-employed. According to our research, most relationships seem to be founded on mutual respect, and allow self-employed people to enjoy the autonomy and control that are the defining features of this way of working. In the majority of cases, this includes control over how work is done, when it is done and where it is done. 

Tensions in relationships arise when the self-employed come under pressure to compromise on points that are in their clients’ interests but not their own. These often relate to unpaid extra hours, compromising on the quality of work and a range of other issues. Clients need to properly respect the independence of selfemployed contractors, and this means making sure both that work contracts are properly drafted to begin with and that they adhere to them in practice. 

3. Work-life balance 

On average, the self-employed work longer hours than employees, but this is generally their own choice and doesn’t necessarily mean they are less happy: most self-employed people enjoy their work and are naturally self-motivating. The majority, however, would also prefer to be working fewer hours and said they found it hard to take many holidays or sick days. 

Self-employed people find it particularly hard to separate their work life from their home life. This can cause problems for the family lives of people who don’t enjoy self-employment, but it can also be a benefit for those who need to combine work and caring responsibilities. Many self-employed people are also remote workers, which brings many benefits in terms of independence and flexibility, but can also lead to loneliness if people spend a lot of the day working by themselves. 

4. Skills, progression and sense of purpose 

Finally, the acquisition of new skills, the feeling of progression and a sense of purpose at work. Evidence suggests that the vast majority of the self-employed do not fit the description of entrepreneurs looking to grow a business and hire other employees; instead they simply enjoy practising their chosen profession as an independent worker. This means they have to think differently to employees about how they assess their progression at work. Instead of climbing a career ladder, they find other sources of meaning in their work – often through contributing to society or developing their own skills and expertise. 

Self-employment naturally requires a very broad range of skills, as one person may have to manage all aspects of a business themselves. In many cases they have opportunities to learn most of these skills on the job, having to be proactive and learn to solve problems themselves. However, there is a relatively low level of formal training undertaken. This is likely to be because of the high opportunity and financial cost of most training, as well as a sense among many of the low paid self-employed that none of the training available would actually help them.

Drawing on all the lessons of this research, we put together a set of 10 overarching principles which in our view define what it means to be in good self-employment. These principles can be seen in full near the end of our report. 

We also put forward a set of recommendations for the Government to better promote good quality self-employment: 

  • Clarify client obligations and promote good practice to ensure clients know to properly respect the autonomy of the self-employed. 
  • Provide more flexible pension options, including the sidecar model, to reduce the number of selfemployed not saving for a pension. 
  • Ensure fair access to financial services by encouraging financial providers to offer services tailored to people with variable incomes. 
  • Change the rules of Universal Credit and New Enterprise Allowance to make sure the low paid self-employed are being properly assessed and supported. 
  • Tackle late and non-payment of invoices through enshrining the prompt payment code in law and giving the Small Business Commissioner new powers. 
  • Promoting co-working and co-operatives to help self-employed people support each other. 
  • Make more funds available for training through adult education vouchers and ensuring the self-employed benefit from the Apprenticeship Levy and the Flexible Learning Fund.

Guides and tools to help your business

Listing Download generic
Members Only
MSC Template Appeal Letter

IPSE members in receipt of a Regulation 80 determination notice using MSC legislation can access Markel's template appeal letter.

Listing Download generic
Free to All
The Courage Economy

IPSE's manifesto for the 2024 general election

Listing Download generic
Free to All
Freelance Confidence Index archive
+1 more

The Freelancer Confidence Index is a quarterly survey that tracks the business performance and economic outlook of independent professionals and the self-employed...

IPSE-LOGO-HEADER

Join our newsletter

Registered in England and Wales, no 03770926. Lynton House, 7-12 Tavistock Square, London WC1H 9LT