If one single thing can be identified as having changed the face of the modern workplace in the past 20 years, it would have to be the move away from the conventional office. Workers are becoming increasingly independent and millennials are demanding a work/life balance never seen before. This shift is primarily driven by technology allowing employees to work remotely – no longer tied to a landline phone to communicate. All of this has given rise to a new breed of worker – the freelancer.
Freelancing facts
A U.S. study into freelancing suggests that the majority of workers will be freelancing by 2027! In fact, in 2017, freelancers made up one-third of Australia’s workforce; that equates to over seven million workers. Most businesses who utilize freelancers believe they are a cost-effective way to manage workflow.
Freelancer benefits are most evident in businesses whose work is seasonal or project driven. They offer the opportunity to take on staff when work is plentiful and cut back during quiet periods.
So how will this impact on employers? It means that they may need to rethink the way they approach an array of issues including their physical office spaces, staff forecasts, online accounting systems such as flexible payment and invoicing software which has the capacity to streamline payroll and tax issues surrounding paying consultants and freelancers. Whilst payroll formerly meant a weekly, fortnightly or monthly pay run, having a stable of freelancers places a new range of demands of accounting software.
Be flexible
It is an interesting statistic that younger business owners are reported as being more open to the possibility of employing freelance staff. It is likely that this is due, at least in part, to increasingly relaxed and flexible views of the modern workplace. Remote offices, more casual work attire and a move away from the 9 to 5 mindset is providing workers with a greater work/life balance – this goes to the heart of the freelance mindset.
Many parents are choosing to freelance rather than return to full-time work due to both the crippling costs of childcare and the ability to spend more quality time with their children.
Relationships
It is easy for employers to undervalue their freelancers. After all, they are basically working for themselves but this means that they are also heavily invested in providing a quality outcome.
If you find a good freelancer look after them by being mindful of a few key considerations:
- Understanding an independent contractor’s outside commitments provides realistic expectations about their workload
- Be prepared to accommodate a more flexible timetable outside traditional 9 to 5 hours
- Provide ‘hot desks’ in the office to foster a collaborative environment
- Regularly review and track their performance and keep an open line of communication
- Listen to feedback and respond in a timely manner.
Advantages
Freelance workers can be far cheaper in the long run, than full-time in-house staff. Superannuation, insurances, tax, overtime, sick pay, holiday pay and annual leave are transferred to the responsibility of the freelancer. As most of the independent contractors work from home or onsite, there is no need for a physical office space or dedicated hardware. They also charge on an hourly or daily basis meaning you are only paying for work done; making them more efficient than a full-time employee.
There is also the advantage of being able to drop their services if work goes quiet – unlike staff who will still need to be paid even when you’re not.
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For businesses, freelancers can be an efficient way to increase their manpower without the ongoing commitments associated with full-time staff. With an ever-growing number of skilled employees choosing to become independent contractors each year, it is in the best interests of all business owners to prepare themselves to deal with this change in the staffing landscape. By installing systems which can streamline independent contractors entry into staff ranks and a flexible environment which promotes productivity – a mutually beneficial relationship can be established.
