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In the late 1980s, Charles Handy predicted a radical new way of working. Individuals seeking greater freedom, flexibility and variety would develop multiple part-time roles instead of a full-time job with one employer. Handy’s concept of the ‘portfolio career’ would appear to be accurate, as portfolio careers are now an increasingly prominent aspect of working life.[1] This article provides a definition of the portfolio career and considers why this approach has become so popular. It also examines the benefits and challenges of a portfolio career and looks at how organizations can benefit from employing portfolio workers.
What Is a Portfolio Career?
A portfolio career is characterized by an individual obtaining and undertaking a variety of pieces of work for a number of different clients or employers. From the independent professional to the freelancer or project worker, the one thing portfolio careerists have in common is their ability to self-manage an assortment of jobs on a contractual basis at various stages throughout their working lives. A portfolio career can take the form of:
- a number of different part-time jobs
- a combination of a job and a business enterprise
- a combination of multiple activities and skills
- different working arrangements at different times
- working for more than one employer or client
- a combination of project work, temporary or interim work, self-employment and working from home
Why Opt for a Portfolio Career?
Notions of careers are changing, with the traditional view of a ‘job for life’ gradually making way for more flexible work options. With an aging population and an increased interest in personal flexibility and work-life balance, the portfolio career has become increasingly popular. Furthermore, jobs are no longer guaranteed, as many organizations downsize, merge and make redundancies in order to stay competitive. As a consequence, many people opt for a portfolio career as a way of taking control over how, when, where and for whom they work.
Balancing the Pros and Cons
People choose to embark upon a portfolio career for a variety of reasons – to be their own boss, to have more freedom and variety in how they work, to achieve a better work-life balance or to take on new challenges. Whatever the reason(s), it is clear that a portfolio career has many advantages which include:
- increased job satisfaction and self-fulfillment
- greater autonomy and control over work activities
- potential for greater flexibility and work-life balance
- freedom from corporate agendas, bureaucracy and workplace politics
- greater variety of work and the ability to pursue multiple interests simultaneously
- development of a personal and professional ‘brand’ with a unique combination of skills and talents
Despite the benefits of a portfolio career, many commentators argue that the portfolio life will not suit everyone, and point to a number of important negative aspects, including:
- feelings of isolation, with limited opportunities for team working and interaction with colleagues and a loss of camaraderie
- loss of a traditional work routine (can be viewed as a benefit by some)
- unpredictability of work, with periods of ‘feast’ or ‘famine’
- financial uncertainty and insecurity
- difficulty in balancing competing demands and managing time effectively
- loss of full-time employee benefits such as pension contributions and continuity of employment, which can affect entitlement to redundancy and sick pay
Organizational Benefits
As well as the benefits to the individual, many organizations are also beginning to see the advantages of employing portfolio workers:
- Portfolio workers can be attractive to many employers as they represent a pool of flexible talent which can be called upon to meet intermittent or short-term needs for specific areas of expertise (e.g. marketing, advertising or book-keeping).
- Employing individuals on a part-time, temporary or interim basis is often a better financial proposition than full-time permanent employment. Employment overheads are minimized and other costs such as recruitment, induction and training are significantly reduced.
- Portfolio workers can help to energize and motivate existing teams, often bringing a new perspective and a creative spark.
Portfolio workers can have a different psychological contract to an organization’s existing employees, as their obligations and responsibilities may differ. If your organization is considering moving towards employing portfolio workers, it is important to consider how existing employees might be affected and to communicate the reasons for differences in roles and responsibilities.
Conclusion
It is clear that Handy’s vision of a portfolio career has important implications for working life, as he argues that the days of working for one employer in a single occupation may be over. For individuals, a portfolio career offers greater flexibility, variety and an improved work-life balance. Portfolio workers also provide employers with a means of adapting to the demands of an ever competitive business landscape.
Find Out More
Sandy Anderson, The Work at Home Balancing Act: The Professional Resource Guide for Managing Yourself, Your Work and Your Family at Home, Avon Books, 1998.
Joanna Grigg, Portfolio Working: A Practical Guide to Thriving in the Changing Workplace, Kogan Page, 1998.
Charles Handy, The Age of Unreason, Business Books Ltd, 1989.
Charles Handy, The Elephant and the Flea, New Thinking for a New World, Random House, 2001.
References[1] Clinton, P, Totterdell, P and Wood, S, ‘A Grounded Theory of Portfolio Working: Experiencing the Smallest of Small Businesses’, International Small Business Journal (2006), Vol 4, pp 179-203.
