Freelancing has been on an up-trend for some years now. It’s rapidly changing not only the way we work but the way we think about work, view clients, and negotiate with those who deliver services to us. Businesses can benefit from this trend. Here’s how.
Technology has made remote working a possibility and more and more people are using it to work as freelancers to escape getting tied down to a single job. In fact, according to a study 1 done by Upwork and Freelancers Union, 50.9% of the US workforce will be freelancing by 2027. Some of the key factors motivating people to freelance are the desire to be their own boss, the freedom to choose where and when they work and what they do, and the security that comes with having a portfolio of clients, rather than a single employer.
Across 180 countries, freelancers earn significantly more than non-freelancers, reports 2 San Francisco-based talent-pairing platform Cloudpeeps, adding that the estimated earnings of the US freelance workforce rose from USD 715 billion to USD 1 trillion from 2014 to 2015.
Corporate businesses have also opened up to the idea of hiring freelancers because of the benefits that it brings to them. In a study 3 done by SaaS provider Mavenlink, 79% of executives surveyed agreed that an on-demand workforce is a competitive advantage.
Organizations that hire freelancers see 4 key benefits:
1. Quality Output
Freelancers strive to do their best on every assignment because they’re running a business and would require repeat orders to support it. Since most freelancers come with prior experience, they tend to bring a broader perspective to their work. When required, they also collaborate with each other, which results in better quality output.
Cost savings: Companies hiring freelancers or contractors save upward of 20-30% over hiring comparable employee skill sets, says Recruiterbox 4. These enterprises don’t need to incur the costs that retaining full-time employees demand – like employee benefits in insurance, social security and retirement; workspace real estate and infrastructure overheads; and more.
2. Flexibility
Unlike employees (for whom company managers must ensure there’s always work on the table), with freelancers, skills that aren’t in constant demand throughout the year can be sourced as and when needed. What’s more, enterprises can choose from a range of skills that free agents offer. There are many platforms today through which such professional skill sets can be hired.
3. Scalability
Since organizations’ workforce requirements can slide up or down based on business needs, enterprises can scale up or scale down their operations with freelancers. Engaging free agents achieves better organizational agility and innovation, says Elaine Pofeldt in her article in Forbes5. Nonetheless, before hiring freelancers for your business, keep a couple of checkpoints in mind.
4. Availability
Because a free agent’s priority is to their business, they may not always be available as per your timeline. So, build a pool of freelancers that you can access at any given point in time. Move to an alternate resource, when required, rather than pressure a freelancer to accept an assignment. Many organizations minimize their uncertainties in sourcing by using talent-pairing platforms that can service a range of requirements.
5. Fit and Compensation
Freelancers who deliver the best value for money tend to be experts in their niche, choosy about the type of work they take on and unwilling to engage or continue if your offer does not match their professional and financial expectations. So, choosing the right talent for the job and paying for what it is worth will ensure that the relationship sustains in the long term.
Embrace the Freelance Revolution: Unlocking Business Benefits
The rise of freelancing is reshaping the future of work, offering businesses numerous advantages. By leveraging freelancers, organizations can access high-quality output, flexibility, scalability, and cost savings. Additionally, having a pool of available freelancers ensures timely project completion. Embracing this trend allows companies to benefit from specialized skills and achieve greater agility. By strategically engaging with freelancers, businesses can stay competitive and thrive in an evolving marketplace.
References:
https://www.upwork.com/press/2017/10/17/freelancing-in-america-2017/
https://blog.cloudpeeps.com/freelance-trends-2017/
http://go.mavenlink.com/hubfs/Downloadable_Content/Ebooks_And_White_Papers/white-collar-gig-economy-on-demand-trends-oct-2017.pdf?submissionGuid=0dfe4d54-0081-4268-9407-db4d64312999
https://recruiterbox.com/blog/freelance-vs-fulltime-pros-cons-hiring-independent-contractor
