Free Agent Nation - book review
In my formative years, the conventional wisdom was that a person should stay in school, get good grades, go to college, and get a job for a respected and well-established company. I took this advice to heart and after graduating from Penn State, I went to work for Hewlett-Packard. I had considered HP to be at the very top of my list for years, ever since my father had brought home a calculator when I was a teenager and let me play around with it. You've no doubt heard one of the laws formulated by Arthur C. Clarke that stated that any technology sufficiently advanced is indistinguishable from magic. Well, at age 13, getting to play around with that calculator and seeing how fast it would calculate factorials was magical. A factorial is the product of all integers from one to a given number. It's written as the number with an exclamation point. For example, 4 factorial, written 4! is equal to 1 x 2 x 3 x 4 = 24. The HP45 could evaluate up to 69 factorial before it overflowed the exponent capacity of the calculator. It did all these calculations in less than a second. It was astonishing.
I guess this event must have made a significant impression on me because it played a role in me landing a job at HP after college. I subsequently ended up staying for 24 years. Things changed significantly from the time I started at HP until I left but what I noticed as the biggest change was the way that people were hired and how long they stayed. When I started at HP in 1983, it wasn't unusual to find people there who had worked at HP for their entire careers. There just wasn't a better place to be, nor were there many good reasons to leave. When one project was done, it was a simple matter of moving on to another. The company would even help you to get assigned to the next project. But as time went on, I started to notice that if you were part of a division that wasn't performing well financially, then your career could end suddenly and you might find yourself out on the street. In essence, the lifetime employment path was no longer an option. Keeping one's job was sometimes a matter of being in a division that was financially healthy or having the keen sense of timing to switch divisions at the appropriate time to avoid a layoff. The effect of this change is that many of people who were intent on staying with a company are instead becoming free agents.
Today, pledging loyalty to an organization, a loyalty that can no longer be reciprocated, is no longer an option. Instead, people are becoming free agents and going to wherever there is a need for their services. In some cases, people are working on a part time basis for several employers at once. This provides a form of employement diversification that you can't get from working for a single employer.
So how did this situation come about? The first reason for the rise of free agency is that there can no longer be a long-term social contract between employees or employers. Things change too fast. Companies get bought, sold, merged, and go bust at a dizzying speed. It would be lunacy to pledge loyalty to a company when these conditions exist. Another change is that you can do productive work today without the need to acquire a lot of capital. For some professions, the only physical assets required are a computer, a phone, and access to the Internet to provide value. These assets no longer require the resources of a large company. We also have widespread abundance of the basic necessities for life. My observation is that people spend most of their income on things that weren't even available or necessary 100 years ago. One could argue that many of them aren't necessary today. The basic needs like food, shelter, and clothing can be provided for a smaller percentage of an income than was possible previously. This means that people are not living as much of a hand-to-mouth existence as was commonplace throughout human history. So having an unpredictable level of income is not as big an issue as it may have been at one time, provided you can reduce your expenses accordingly. People are also becoming more particular about how they earn a living and are not as willing to put up with soul crushing work as they may have been in the past when they needed to do it just to feed and clothe their families.
The ability to network with peers, find opportunities, and get support as a soloist is better today than it has ever been. With the Internet, there are people from all over the world who are able to seek out opportunities and provide services for each other, often without the need for physical proximity. Unlike conventional hierarchical structures, free agency is a meritocracy where one must follow the Golden Rule to maintain one's reputation. For many people, that's a welcome change.
Today, more business is also being done by way of virtual infrastructures. With the advent of ad hoc meeting places like Starbucks along with office superstores and service centers like Kinko's/FedEx, independent workers have easy access to services that were not available to them previously. You don't have to own a copy center or a mailroom, you can simply rent them.
Free agency allows for opportunities for workers to blend family and work together. A free agent who works from home gets to spend more time with family, which is more aligned with human needs and desires than what is required by an organization that needs standardized education that separates family members for most of their waking hours. In other words, you may have more opportunity to strike a favorable work/life balance as a free agent that you do with the more conventional employer/employee arrangement.
One of the eye openers I got from the book was the concept that group health insurance in the U.S. arose accidentally when the U.S. government, in an effort to freeze wages with the 1942 Stabilization Act, induced employers to start offering group health insurance plans as a way to attract employees. This benefit, for the most part, has since been exempt from both payroll and income tax. But group health insurance has a downside too. For example, if you or one of your family members is not in perfect health, it's difficult to get health care coverage unless you join a company so you can get access to a group plan. As medical costs have risen out of proportion to wages, this benefit can have the effect of trapping people in jobs they don't like. Health insurance can still be a challenge for some free agents unless all family members are in good health.
It wouldn't be right to talk about free agency without mentioning the free agents who are classified as 'temps', many of whom would prefer a full-time job with an employer but have to make due with a degraded status that denies them access to benefits like health care, vacation, and a pension plan. In some cases, these people are not free agents in a voluntary sense, but rather because it's the only alternative they can find. The worst situation is the 'permatemp', i.e., someone who does the same work as a permanent employee but at less pay and with no benefits. In some cases, these people are hoping to be hired full time and so the job is almost viewed as if it's an extended job interview. It would be best to understand an employer's expectations prior to taking a temp position because some employers may really be looking for temporary workers who they can dismiss at a moment's notice, and if that's the case, you should not take a job like that unless you're in agreement with that arrangement.
Retirement for a free agent may be a lot different than it is for an employee of a large company. For a free agent, there's really no need to retire completely. As long as you are able-bodied and have a desire to continue working, then there's no need to sit on a beach drinking Mai-Tai's or playing golf all day. You can still opt to participate in your chosen field if you are willing and able to do so. This may help to cushion the blow of the 'retirement boom' that is expected to happen over the next few decades as the baby boomers move into retirement age. There is a general fear about a large percentage of the U.S. population having to live off a much smaller percentage of the working population paying into the tax system. If fewer people opt to retire, but instead continue to to work, it can help alleviate this imbalance.
Education is likely to change as a result of free agency. High school and college education has been tuned over the years to produce cookie-cutter clones of The Organization Man. But now that model of employment is obsolete and so high school and college are likely to become more tailored to self-reliant forms of eduction that are better tuned to free agency. With one or more parents at home, home schooling will become a more attractive option. Also, since people will tend to need to keep their skills up-to-date to remain competitive, adult college education will continue to grow as more people become lifelong learners.
The book discusses many other important trends and makes other predictions regarding the future of home workspaces and the political influence of free agency. I found it to be a worthwhile and thought-provoking book and highly recommend it.
I've exchanged email with Dan Pink and he told me he's got another book called The Adventures of Johnny Bunko: The Last Career Guide You'll Ever Need






