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How Freelancing Is Affecting Employers

Review How Freelancing Is Affecting Employers

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Anabella Sevyn

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Nov 5, 2021
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There was a time when the allure of a prime office location was a major incentive for workers. It is no longer that time. The ideal career of the future does not require commute time or an office. You just need a laptop and some time or a place to plug in. Due in large part to the rise of the gig economy, many people are now able to realize their ambitions.

The Great Resignation, as the widespread departure from the labor force in the wake of the COVID pandemic came to be known, was initially explained as people looking for more fulfilling employment elsewhere. Now, more than two years later, it seems that prediction was incorrect.

Recent studies conducted by Fiverr and the International Labor Organization show that employees are increasingly opting out of traditional labor rather than just switching employers. According to a survey by Fiverr, 54 percent of those who quit their jobs did so to become freelancers or establish their own businesses.

Even before the pandemic, people had been discussing the possibility of transitioning to the gig economy. Because of the epidemic, however, many workers had to work from home or on unusual shifts. The experience was similar to a trial run of the gig economy, and many people have determined that it is preferable to their current situation.

Millions of workers are abandoning their positions because they want to alter the traditional workplace. Particularly among today's youth, working a traditional 9-to-5 is no longer the ultimate goal. There has been a rise in the number of people seeking flexible job options. They despise the idea of spending eight or more hours a day behind a desk. The old methods of finding work no longer hold any allure.

Freelancing is the way of the future.

The implications of the rise of the gig economy cannot be overlooked by companies that are having trouble attracting and keeping good employees. There is a significant exodus from the traditional workforce because many workers feel it is too restrictive or does not provide sufficient compensation for their abilities.

Job seekers might find consistent new openings in the gig economy. Those who want to increase their earning potential can do so by taking on many jobs at once. Additionally, since gig workers can take low-intensity jobs while learning new skills, they are able to commit more time than typical workers to doing so. Employers who are unwilling to offer comparable perks to gig employees will have a hard time luring them back to permanent positions.

If companies are tracking the effects of hiring freelancers or contractors, they may be surprised to learn that these individuals really make their jobs easier. In the end, contract workers are content with their jobs since they get to focus solely on their responsibilities. Moreover, the gig economy enables businesses to acquire people with specialized abilities, including IT, marketing, and HR, without the high cost of recruiting them for a full-time role. Employers who adopt a more flexible approach to their workforce and welcome freelancers and part-timers can get the best of both worlds.

The expansion of the gig economy is good for new businesses.

For young businesses on a tight budget, partnering with freelancers might be a great way to get started. Expertise can be gained from gig workers without the burden of providing for them or paying their salaries, benefits, taxes, and other employment-related expenses. The gig economy makes it possible for new businesses to gain access to expert knowledge and assistance without having to shoulder the burden of traditional employment costs.

Startups can take advantage of this trend if they put some thought into their hiring practices and adapt them to the needs of freelancers. The procedure should be quick and painless, promoting the use of freelancers. Partnership with companies enabling the rise of the gig economy will help organizations attract talent and publicize the availability of contracting opportunities within their workforce.

What kind of effect do freelancers have on corporate culture?

Every company should make preserving a positive work environment a key priority. There is always a chance that culture will be affected when there are shifts in the composition of a workforce. However, businesses are discovering that there is no detrimental effect to adding freelancers to the mix.

It requires some work on the company's part, but establishing onboarding procedures for new employees and freelancers can help make the transition go more smoothly for everyone involved. The best situation is when all of these groups feel like they are fully part of the company's culture, can communicate well, and work together without getting in each other's way. This lets the business do even more than it could with a more traditional staff.


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