Companies shift to freelancer-heavy workforce
NEW JERSEY, UNITED STATES — The gig economy is booming, and companies are shifting their hiring models to capitalize on the agility and expertise of freelancers.
This paradigm shift is reshaping business landscapes, offering companies a flexible and cost-effective way to meet their workforce needs.
“Companies today, from a cost perspective, want to pay for only the work when they need it. Maybe they just need a certain thing done. You don’t have to pay salary costs and employee benefits,” explained Shannon Denton, co-founder of marketing talent platform Wripple.
“You can engage in an on-demand workforce, a freelancer, to come in who’s a specialist and to knock that out maybe in a matter of weeks… you’ll see that the data will say it’s 30 to 40% faster in many cases.”
In fact, over one-third of the U.S. workforce now identifies as freelance workers, signaling a profound shift in how businesses operate.
According to Wripple, 92% of companies expect to increase freelancer engagements in the next two years. However, only 79% of freelancers feel this way of working is consistently integrated into companies’ workforce strategies.
Evolving with the freelance economy
The landscape of freelance work is continually evolving, fueled by technological advancements and a changing workforce ethos. With the rise of online platforms, access to global opportunities for freelancers is just a few clicks away, democratizing work engagements across continents.
Rather than viewing freelancers as temporary workers for one-off projects, companies should strategically manage blended teams.
“Blended teams need to shift from a project-to-project mentality to managing freelancing as an ongoing strategic part of a company’s holistic workforce,” reporter Cheryl Robinson wrote in a Forbes article.
To effectively integrate freelancers into their ecosystems, companies need to:
- foster a collaborative environment,
- offer fair compensation, and
- provide access to necessary technological tools
70% of Gen Z prefers freelancing for job security
Gen Zs are leading the way by moving towards freelancing, as revealed by freelance services marketplace Fiverr.
The worldwide report found that with almost 70% freelancing already or planning to, and nearly 40% willing to go full-time, Gen Z cites a desire for flexibility, autonomy, and stability in the midst of rampant layoffs.
Financial security ranks high for Gen Z, with 44% wanting to attain financial comfort and 25% aiming to own a business. Travel aspirations are also widespread, with 30% wanting location-independent roles.
