The turmoil in today’s business market has led to an increased use of the freelance workforce by companies looking for flexibility and cost-effective solutions. This shift, noted by Shannon Denton, co-founder of Wripple, is leading to instability in the traditional job market structure, pushing individuals towards freelancing.
For businesses, freelancing offers reduced overhead costs, access to specialized skills, and flexible workforce sizes depending on project demand. While freelancers face challenges such as lack of job security, they enjoy the flexibility and global opportunities.
A study by Wripple and MDRG reveals a growing freelance workforce, with 90% of organizations planning to hire more freelancers next year. This growth is driven by economic needs and the increasing attractiveness of flexible work arrangements and access to diverse skills.
70% of organizations believe that freelancers provide work of similar or higher quality to full-time employees. Additionally, technology advances have played a significant role in supporting this growth by connecting freelancers with potential clients.
Freelancers are also optimistic about their future, 80% of them expect increased earnings in 2024. This confidence is fueled by a better work-life balance, increased autonomy, flexibility, and the potential for higher income due to a larger workload.
Shannon Denton has observed a preference for freelance work among younger generations such as Gen Z.
Growth in freelance hiring amidst business instability
They show a lower interest in traditional employment setups and a greater inclination towards independent project-based work, factors that further fuel this shift.
Businesses looking to attract and retain this talent may need to revise traditional hiring practices, offering more project-based roles and flexible arrangements. Freelancers also need to continually improve their skills and stay updated with market trends to remain competitive in this ever-evolving business landscape.
A survey by McKinsey & Company, details optimism among independent workers about their future, despite concerns about job stability. These workers see potential risks as opportunities rather than threats. They value the flexibility and independence that come with their work.
The survey also highlights that independent workers earn comparably to full-time peers, with some in specialized roles like consulting or technology earning even more. However, a lack of access to traditional worker benefits like health insurance and retirement plans remains a concern for some.
Companies are increasingly hiring freelancers for more flexibility in their workforce, reduced overhead expenses, and access to specialized skills and expertise. Despite challenges in managing remote teams, businesses are using project management tools and communication platforms for efficient and smooth collaboration among freelancers.
Denton emphasizes that freelancers, with their readiness to start work immediately and their cross-industry experience, are more efficient than traditional hires. With a shift towards more remote, flexible workforces and digital workplaces, businesses adopting a ‘gig economy’ structure will likely find themselves ahead of those sticking with traditional hiring and training methodologies.
Source: Freelance workforce grows amidst business market turmoil
