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Driving the Disruption: The Rise of Professional Freelancing

Driving the Disruption: The Rise of Professional Freelancing

It’s quickly become easier than ever to find skilled, vetted freelancers for extra support on anything from IT infrastructure to content marketing. The move to hiring freelancers has become so common that we forget how recent this shift was made – and is still going on. Companies were not always as comfortable hiring freelancers, and there wasn’t always as large a pool of qualified freelancers to draw from. In fact, the disruption caused by the freelance workforce has been so significant that the World Economic Forum (WEF) has declared that we are in the midst of the Fourth Industrial Revolution.

So what is driving this disruption and why has the labor market changed? The immediate answer is advancements in technology. Technology has revolutionized everything from how we travel to how we communicate. WEF points to cloud technology and the mobile internet, as well as the sharing economy and crowdsourcing as two technological trends driving the fourth industrial revolution.

In the United States, two factors have come together to make the gig economy stronger than ever before: the introduction of the Affordable Care Act (ACA, colloquially known as Obamacare), and the rise of talent platforms.

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The Affordable Care Act

With the ACA, many Americans who had previously not had health insurance found themselves covered – and many other Americans who had been insured through their employers suddenly found new freedom in not having their health insurance tied to their jobs. That made many of them take the plunge into freelance work. The ACA freed many Americans from “job lock,” where the fear of being uninsured made them stay at jobs they didn’t want to be in. The ACA instead allowed them to choose how and where they wanted to work and some employees chose to move on to different jobs that they enjoyed more while others chose to work for themselves.

The Congressional Budget Office actually predicted this effect in its 2014 study of the ACA, stating “… the ACA could influence labor productivity indirectly by making it easier for some employees to obtain health insurance outside the workplace and thereby prompting those workers to take jobs that better match their skills, regardless of whether those jobs offered employment-based insurance.”

That same year, a graduate student named James Bailey tested a hypothesis about the Affordable Care Act; he examined whether 19- to 25-year-olds were more likely to work as freelancers if they were able to stay on their parents’ health insurance plans. His research showed that those with coverage were 2-3 times more likely to go into business for themselves than those without coverage.

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Also, after the ACA was implemented, it made more financial sense for companies to hire freelancers rather than provide insurance to full-time employees. In our 2016 research report The Rise of Blended Workforce in the New Gig Economy, we found that 74% of 600 HR decision makers said they would contract more freelancers as a result of the ACA. Further, an astounding 28% responded that they intend to hire a greater number of freelancers than full-time employees by 2020.

The ACA is simultaneously triggering companies to turn to freelancers, while also freeing many Americans to pursue their passions in their new independent careers. The result is the blended workforce – a perfect marriage of companies and freelancers, each satisfied with their arrangement.

The Rise of Talent Platforms

In addition to the ACA, the rise of talent platforms has made it easier than ever for companies to find the freelancers they need. Websites such as LinkedIn paved the way for more niche sites to match freelancers with work opportunities, and the online marketplace of the new gig economy is growing rapidly.

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As our 2016 study found, 38% of freelancers are now being sourced through freelance management and talent platforms. While general online job boards are still more popular at 43%, freelance management platforms are quickly narrowing that gap.

Such sites make it easy for companies to quickly find freelancers with the skills they need. Many outline the freelancer’s specialties, provide a portfolio of past work and include reviews from previous clients. This makes it quicker and easier than ever before for companies to find freelancers they can feel confident in hiring.

A McKinsey Global Institute report on the labor market outlines the many reasons that talent platforms are good for freelancers, companies, and the labor market. McKinsey estimates that by 2025, such platforms may add $2.7 trillion to global GDP and begin to improve many of the problems today’s labor markets face.

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How will these platforms add so much value to the economy? The McKinsey report suggests:

  • Talent platforms give job markets a boost. As these platforms grow, “they will become faster and more effective clearinghouses that can inject new momentum and transparency” to stalled job markets.
  • Talent platforms show which skills are in demand. This transparency may even inform people’s educational choices, steering them into in-demand professions. According to McKinsey, more effective spending on university education “could reduce some of the $89 billion misallocation we find in Brazil, China, Germany, India, Japan, the United Kingdom, and the United States.”

The freelance trend shows no signs of stopping, which demonstrates the ongoing need for talent platforms. As our 2016 research report found, one in five top performing firms say 40% of their labor force is already composed of freelancers and nearly half of top-performing firms intend to increase their hiring of freelancers by 30%. Successful companies are already hiring freelancers in droves and more companies are sure to follow – which makes talent platforms an invaluable resource.

This is no blip – the ACA and talent platforms have helped ensure the rise of the professional freelancer. If your company hasn’t already considered hiring freelancers, what are you waiting for?

Featured photo credit: Shutterstock via image.shutterstock.com

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5 Powerful Ideas on How to Be Productive at Work

5 Powerful Ideas on How to Be Productive at Work

Not being able to stay productive at work is a problem that everyone runs into at some point; no matter how much you like your job, there are certain factors that prevent you from staying at maximum proficiency throughout the whole day.

A lack of productive focus at work can lead to extra stress on yourself, missed deadlines, passed opportunities, raise denial, demotion and even termination.

So, if you are someone who has trouble with your productivity, here are five effective tips on how to be productive at work:

1. Take breaks

First and foremost, it’s important for you to take regular breaks. Trying to work throughout the whole day will tire your brain, which will then cause you to doze off and think about something else.

If you keep working your brain, it will fill up and get jumbled with information—sort of like a computer hard drive. Taking a break would be like resetting your computer so that it can start afresh, or de-fragmenting the data so that all the information is in order.

This is a great thing because it allows you to solve problems you were unable to solve previously, by seeing it differently; if you are able to organize your thoughts properly, you will be able to take in new information more easily.

There have even been studies about methods of saving time and staying proficient, and taking breaks is one of the leading factors.

According to Christine Hohlbaum, the author of The Power of Slow: 101 Ways to Save Time in Our 24/7 World, eating lunch away from your work area every day will greatly increase your productivity. Eating in your work area will give you the illusion that you are working, but whether you like it or not, your brain will begin to wander and think of something else and then you will be working tirelessly with no progress.

It’s important to take breaks before and during work too: if you come to work in a rush because you woke up late, your mind will not be mentally prepared for the day ahead, and you will spend the first 10 to 15 minutes trying to get organized and composed before you can actually start working.

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Instead, you should try to wake up 20 minutes earlier than the time it would take you to “just get” to work. Take that time to stare off into space and not worry about anything.

If you do this, your brain will be empty and ready for all the challenges it has coming for the next few hours.

If your employer only allows a set amount of breaks during the workday, that doesn’t mean you can’t just get up and walk around for a quick break every now and then.

Even if it’s only 5 minutes, it will refresh your brain and you will gain renewed energy to do your job.

Learn more about The Importance of Scheduling Downtime.

2. Pace yourself and balance your workload

One problem that most people run into is that they underestimate the amount of work they have to do, and end up doing 50% of the work in the last 20% of the time they have to do it. This is due to an issue of balancing one’s workload.

When you receive a project, or are doing a job you normally do, take some time to really plan out your work schedule.

Consider how much time it took you to do this last time; determine how you can break the project into smaller parts and which can only be accomplished on certain days, and whether anything might come up that could interfere with your plan.

All of these questions are important for starting on a project, and when answered, they will help you stay productive throughout each day.

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For example, if you needed to design a project to map out the amount of aid offered in various regions after Hurricane Sandy, you can break it up as follows:

You will need to know what organizations are offering help to begin with, how much aid those organizations gave or plan to give, which regions were hit by Sandy, and which regions suffered the greatest losses.

You start this project on a Thursday and know you have until Tuesday to gather this information.

In order to stay productive, you need to plan out your work week—now you know you can find out which organizations are involved in helping the Hurricane Sandy Victims any day since that information is online, but gathering information on the organizations may require you to call them.

Since phone calls can only be done during week days, you have to plan on gathering all of that information before the weekend comes.

That is just one example of a situation in which pre-planning your project will help you stay productive; had you researched the affected regions first, you would not have received the info on the organizations until the weekend, and may have missed your chance to call them.

That, in turn, would have wasted time you could have spent working on this project to finish it.

Knowing what you need to do, when you can do it, and how long it will take you, is important in balancing your workload and being more productive and efficient.

3. Put your work first

This is an issue that usually occurs with young people who are new to the workforce: they’re often tempted with offers to go out at midday, and then come back lost in thought and unfocused on their work-related tasks.

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While it is important to take breaks, your breaks should consist of you clearing your mind, not loading it up with other less important information—like sports.

However, that is not the only situation where you need to worry about putting your work first before all else.

In a work environment, the senior employees will oftentimes push some of their menial tasks onto the newer employees. If you fall into that category, you need to know that their work is not your work, so if you have tasks that need to be done, you need to do it first.

If you are a new employee, you must learn to say no to other people even when it means you may not be in their good graces anymore. You can help others out once your work is done, but you are paid to do your own work, not anyone else’s.

4. Don’t open your browser unless you need them

In this day and age, everyone is constantly monitoring their social network. This is a major pain point for companies, which is why many don’t allow employees to access their social networks on company workstations.

When you are at work, disconnect the internet from your phone and keep your browsers closed so you’re not tempted to log onto your social media accounts or browse any sites that are not work-related.

If you keep your browsers closed and phone tucked away, only to be used in an emergency, you will find yourself being a more productive employee right away. 

5. Try to be happy and optimistic

If you always have a negative outlook on life, you will be more distracted and less motivated to get work done, so it’s important for you to start your day off right.

This can be done by having a good breakfast or by taking time in the morning to watch one of your favorite TV shows before work.

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If you are happy, you will find yourself able to work much more productively as your mind won’t wander into worrying about something else.

Also, if you stay optimistic and keep telling yourself that you can do whatever you set your mind to, the tasks will seem much less daunting and will go by much more quickly.

Take a look at more effective ways to stay positive at work:

15 Ways To Stay Positive At Work

Happiness and optimism are the keys to being a productive and happy employee.

All in all, heed the five tips above and you will find yourself being one of the most productive people at your company.

While you do not need to master them all, each and every one of them will help you become a better and more efficient employee.

Featured photo credit: Pexels via pexels.com

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