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March 24, 2016
Introducing the gig economy
Reduce your overheads working with freelancers
Welcome to the gig economy. The world of work is changing beyond all recognition. Today, more and more people are opting to go freelance, rather than be employed by a company. In fact, freelancing is becoming so popular that experts predict if current trends were to continue, more than 50% of the UK workforce will consist of freelance workers by 2020. This so-called ‘gig economy’ is on the rise throughout the world.
The latest research from the US estimates that freelancers now comprise over a third (34%) of the entire American workforce. There are now over 50 million freelancers making up the gig economy in the USA, their numbers driven upwards by the jobs market, the economy and advances in technology.
Businesses large and small now view this new, flexible workforce as an important factor in developing and running a successful, profitable business.
There are some distinct advantages of using freelancers to grow your business rather than take on employees. Here are the top five:
- Save money – the costs associated with hiring new employees can be cost prohibitive for many small businesses. From the recruitment process to ongoing expenses such as: salary, benefits, pensions auto-enrolment, holiday and sickness pay, office space and equipment, etc. having staff can be an expensive business. Taking on freelancers is, on the other hand, far more cost effective.
- Greater flexibility – small businesses in particular are affected by peaks and troughs in demand. The beauty of working with freelancers is that you can use their services for a set period of time and then let them go when you don’t need them. If you get busy again or need their particular services again, you can then reach out as and when, without having to keep them on the payroll.
- Gain specialist skills – a freelancer can provide your business with a much-needed injection of specialist skills and knowledge. E.g. it’s increasingly commonplace to hire a freelance web designer to develop a new website and logo. The advantage is that you effectively outsource an expert freelancer who will do a good job and who will be a fraction of the cost if taking on a permanent member of staff.
- Save time – we all know there is nothing quick about recruiting employees. With freelancers, you can get up and running quickly and efficiently. There is less paperwork and no training requirements. Taking on a freelancer can be achieved within a matter of hours or days and, if it doesn’t work out, the arrangement can be drawn to a close just as quickly.
- Get a fresh perspective – freelancers can often bring a welcome breath of fresh air into the business. They are not closely tied to what has been done before and can make creative suggestions
Whether the driver for getting freelancers involved is to keep costs down, find the highest quality specialist talent or to save valuable time, the ability to tap into an external workforce that can be quickly scaled up or down, represents a significant growth opportunity for small businesses.
that you or other team members might have overlooked. They are also largely unaffected by office politics.
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