Why Freelance Platforms are the Future of Business
The workforce structure is constantly changing. Back then, companies employed individuals for 20-30 years and ended their service with pension once they hit minimum retirement requirements. Today, workers juggle as many as 10 jobs before reaching 40. By the time they stop working, they would have had an average of 15 jobs, according to the Bureau of Labor Statistics.
There are multiple factors that fuel this shift in the work landscape. Chief among these variables are the increasing salary demands of workers and the rising costs of operations. These push companies to continuously find ways to remain as efficient, productive, and profitable as possible while keeping their business expenses low.
Driven by such huge growth potential, financial rewards, and positive employment outlook, it won’t be long before freelance platforms and jobs become the norm rather than the novelty. Many ask if freelance is the future of business. By the looks of it, both experts and the common people are inclined to say yes.
More Money for Employers and Employees
By utilizing a freelance workforce, companies drastically reduce their overhead expenses since they keep their roster of full-time and in-house employees low. This means they don’t have to pay bigger benefits and healthcare packages as required by law.
Also, they don’t have to invest much in office space, equipment, and hardware as the majority of freelancers work from home or at locations they prefer and using their own equipment and software. Finding highly qualified professional freelancers is proving to be easier than ever, thanks to freelancing websites that perform thorough vetting of applicants prior to adding them to their database and presenting them to potential employers.
Freelance employees benefit financially as well. They can be quite flexible in terms of schedule, which means they can work on various side gigs and generate more income than they would if they are required to work at an office.
The financial incentives will drive companies to build and deploy their team of freelancers. This will fuel the demand for freelancers in turn. As a result, freelancers are able to find more work opportunities, making freelancing a better work option than full-time employment.
Millennials Are Taking Over
One important fact that many businesses are taking note of is that the millennials are currently the largest demographic in the entire workforce. This is an important piece of information because millennials don’t adhere to the traditional definition of an employee.
For behavioural expert Christina DesMarais, millennials don’t see themselves working for the same company for a decade. DesMarais, who also writes for Inc. Magazine, describes millennials as “on demand” individuals who put a premium on connection, immediateness, and novelty.
They are more inclined to work freelance jobs from home rather than place themselves within the confines of an actual office. Because their generation is so accustomed to getting everything from food to clothes to entertainment with just a click of a button, they have the same expectations when it comes to working and generating money.
Aside from millennials, businesses should also recognise that older members of Generation Z have entered the workforce. It is crucial for employers to look deep down into the prevailing and future Generation Z trends to attract them and utilise their services in a freelance framework.
Older Generations Still Look for Work
While millennials are taking the freelance labour market by storm, members from the older generations, i.e. the baby boomers and Generation Xers, dabble in the freelancing business as well. They may not be as tech-savvy as millennials are, but they offer a wealth of experience. In the business world, experience is quite valuable.
Most retirees do this to keep themselves occupied and turn their hobbies into an instant cash-making machine. Every now and then retirees go online and search the best freelance platforms for beginners in an effort to make an income despite their advanced years.
In fact, the FreshBooks 2018 Self-Employment Reports found that 49% of freelancers in the world are aged 50 years old and above. On top of that, 32% of baby boomers who still work full-time are planning to enter the freelance industry within the next five years.
For Generation Xers, freelancing provides them with a sustainable and viable exit from their respective physical work bubbles. In fact, 28% of freelance workers, which is still a significant chunk, are from Generation Z. Most of their work revolves around part-time professional consultancy services. High-value professionals such as engineers, accountants, and lawyers see freelancing as a financially-rewarding activity after saying quits to their careers.
The Future Is Here Already
These factors, among other things, are the reasons why freelancing is experiencing a massive surge in popularity and prevalence. In the United States alone, freelancing is fast becoming a standard practice and setup for both workers and employers.
Freelance statistics revealed that in 2018, 35% of American workers, approximately 56.7 million people, entered the US freelance industry. Scale that up to a global setting and one can easily imagine how the freelance practice is going to impact the world.
As the demand for more freelance workers grows and technologies that enable freelancing continues to progress, the freelance sector has no way to go but up. There will be a call for more niches, which means demand for more niche platforms and workers will gain traction in the coming years.
It’s not a matter of wondering whether freelancing is the future of business or not. The freelance sector is already a whopping $1-trillion industry, according to the 6th Freelancing In America survey. It is time to acknowledge that it is the future and it is here.