Outsourcing freelance professionals is the next big work trend and is rising rapidly. The use of freelance professionals has already almost doubled in the last five years and more than 80% of large corporations plan to substantially increase freelance hiring in the coming years. Not to mention, the pandemic gave freelance hiring an extra growth spurt and taught companies that freelancers are a valuable asset. So say hello to the emergence of a more dynamic, globally distributed, and on-demand workforce. Here are the top 6 reasons why freelancing is the new normal and the future of work.
1. Companies are Looking for Specialized Skills for One-Off Projects
Companies are finding it more desirable to keep their team of employees small and leaning on freelance professionals on a “per needed” basis - rather than hiring large teams of employees. As new projects arise, new skills are demanded. And instead of onboarding new employees, they are hiring, on-demand, professional freelancers with specialized expertise to actualize unique tasks or a one-time project. Asking employees to realize these short-term goals in areas outside their skill set can be distracting, time-consuming, and lead to more errors. Plus, hiring a new, permanent employee for a project will mean after the project is done, their skills won’t be required or they won’t have enough day-to-day work, which is costly.
2. Faster Growth & Global Access
Hypergrowth is all the buzz - so companies lean on specialized skills to help accomplish these projects that will lead to rapid growth. With new technologies, outsourcing is more efficient than ever, which is why you can expect more of it in the future. Hiring a freelancer means you can hire people from all over the world. This gives companies more options since you don’t have to only hire within their city. Hiring globally allows companies not to settle. They can find exactly the skills they need when they need them.
Freelancing is also very compelling to workers. Freelancing allows you to grow faster since you are working on different projects for shorter periods. You then gain experience quicker and can become a “pro” in no time. And with faster growth & specializations comes a higher salary.
3. Companies Save & Freelancers Earn More
Companies save a lot of money and overhead (on average, 20 to 30%) when they don’t hire a full-time employee which incentivizes them to hire freelancers. This increases the demand for freelancers (and the demand continues to grow) so companies must offer a competitive salary to get the skills they need. And since they are saving money, they’re happy to offer a higher wage - so it’s a win-win for both. Also, freelancers tend to be much more specialized, thus they can set higher rates since they can accomplish a specific project with more efficiency. 70% of freelance professionals offering skilled services earn more than traditional workers.
4. Freelancers are more prepared for changes in the market
New technologies, new business trends, new skills, and innovations are constantly emerging. Freelancers will actively stay up-to-date on these changes in the marketplace, while full-time employees tend to get comfortable and complacent. Freelancers know that they have to stay on their toes and be prepared for the future.
5. Freelancers are less impacted by Artificial Intelligence.
Artificial Intelligence (AI) is one of the technologies that has had a major impact on the world and work as we know it. AI has already transformed and replaced many jobs. However, freelancers are better prepared for the threat of AI than full-time employees. This is because freelancers possess more specialized skills and are practiced at amplifying competitive strengths and adjusting to just these shifts in the market. They’re also in direct contact with the companies they work for. This allows them to build relationships and a knowledge base that makes them irreplaceable.
6. The Freelance Lifestyle is More Attractive: Freedom, Flexibility & Work-Life Balance
Flexibility, control, lifestyle, travel, freedom, and many more advantages are swaying people to go the freelancing route.
The new work mindset has shifted “work hard” to “work smart”. We're now seeing work-life balance at the forefront, which is what makes freelancing the most enticing route for millennials.
Millennials rate flexibility as their top value for work. 95% of millennials note a healthy work-life balance as a top priority when searching for a new job. And with millennials being today’s largest living generation - this is simply something that we cannot ignore when considering the future of work and freelance.
Flexibility & freedom are known benefits that come with freelancing. People want to choose their hours, work around their life, travel and work remotely from time-to-time. Freelancing builds the bridge to a better quality of life, and more and more people are seeing that.