Gig worker drinking water and using mobile phone in home office during freelance project work

Many employers and employees like the flexibility that 1099 employment provides, but it won’t replace traditional W2 employment, according to a new survey from The Harris Poll commissioned by Express Employment Professionals.

The data show that businesses have embraced 1099 workers, aka independent contractors, especially when they struggle to find full-time ones. Almost half (47%) of U.S. hiring managers say their company currently employs 1099 workers, while 29% have done so in the past. Going forward, almost one-third (29%) plan to hire seasonal, temporary, or contract workers.

Many workers are also embracing 1099 arrangements. On average, hiring managers say they’ve already lost 23% of their employees to independent work, and 45% are concerned that they will do so in the future.

However, workers also identified several disadvantages to 1099 employment, including, among other things, lack of career support, lack of proper compensation, and feeling isolated. On the whole, 72% of job seekers and 75% of hiring managers say that 1099 work will not replace W2 work.

“W-2 work provides the perfect blend of flexibility and security, allowing individuals to pursue their passions while enjoying the stability of traditional employment,” Bill Stoller, Express Employment International CEO, said in a press release. “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 supportive organization.”