There are 53 million Americans (34% of the U.S. workforce) working as freelancers according to the Freelancers' Union. If you haven't already, chances are you'll have to hire a freelancer in the near future.
Why?
The traditional 9 to 5 work model is shifting, from full-time to free agent employment. The world is changing and your business needs to adapt with it.
The Intuit 2020 Report, authored by Emergent Research in partnership with Intuit Inc., explores the demographic, social, economic, and technology trends that will affect consumers and small businesses, and those who serve them over the next decade (more info here).
Intuit sheds a little light on why the workforce is favoring a freelance shift.
Contingent workers - freelancers, temps, part-time workers, contractors, and other specialists - are hired on a nonpermanent basis and don't have full-time employment status. Yet these pseudo-employees are increasingly working as if they are full time.
What's missing is a single employer. By contracting directly with a business or through an agency, these contract workers increase business efficiency, agility, and flexibility...contractors or contingent employees have a greater say in when and how much they work, giving them greater work-life balance.
So who are these self-employed, mobile workforce freelancers? The Freelancers' Union breaks them down into these five types:
2. Moonlighters have a traditional full-time career, but use some sort of freelancing gig to supplement their regular income. For example, this could be a full-time Creative Director for an advertising agency who takes on small projects on nights and weekends.
3. Diversified Workers make up 18% of the freelance workforce. These workers wear a lot of different hats, frequently juggling part-time corporate work with part-time freelance contracts to round out their work portfolio and make ends meet.
4. Temporary Workers have one full-time role, but their employment status is listed as temporary. Consultants often take on these longer-term jobs, which can be extended indefinitely. Large corporations often hire temporary workers to supplement their existing full-time workforce when a big project is imminent.
5. Freelance Business Owners make up about 5% of the I-9 gig economy. Typically, these small business owners grew from the independent contractors or diversified workers category. Many found that the volume of work available in their chosen freelance field allowed them to evolve into a structured small business model.
According to Fast Company, "by 2020, a study estimates that more than 40% of the American workforce will be independent workers—freelancers, contractors, and temporary employees." What does this mean for businesses and freelancers alike?
The rise of freelancers isn't just a boon to independent workers. "It also allows businesses to find more targeted and better qualified talent to address their needs—typically at lower costs," Brendon Schrader, founder of Antenna, a Minneapolis-based marketing firm, points out.
Rather than bringing someone in full-time, with benefits and a salary, a company can hire a consultant who's ideally suited to a particular project. And that consultant is likely to have more resources to tackle it than at any time before.
Don't forget, though, the new "freelance economy" isn't just about "temp" workers. Most independent workers, freelancers, etc. are strategic, experienced, and professional.
Finding freelance or remote work is now easier than ever before!
Finding work is now available from devices, apps, and other personal technology that "lets us communicate with one another from virtually everywhere. But there’s another kind of technology that plays an arguably bigger role—platforms designed to match companies with talent," says Fast Company.
Why would freelancers choose to work through an agency? Find out in this blog written by one of our freelancers.
Arguably though, not all platforms are built the same and don't deliver the same quality of work for freelancers and employers alike. This discrepancy will make working with high quality staffing agencies even more important in the years to come.
Why would you choose a staffing agency over a simple online platform? These five reasons:
Hiring freelancers comes with a different set of requirements and skills than hiring a traditional full-time employee. If you're looking for a good guide, try this one. It runs down 9 tips for making hiring freelancers easier...from why you would want to work with freelancers to how to select the right one for your project.