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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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Last Updated on March 29, 2021

5 Types of Horrible Bosses and How to Beat Them All

5 Types of Horrible Bosses and How to Beat Them All

When I left university I took a job immediately, I had been lucky as I had spent a year earning almost nothing as an intern so I was offered a role. On my first day I found that I had not been allocated a desk, there was no one to greet me so I was left for some hours ignored. I happened to snipe about this to another employee at the coffee machine two things happened. The first was that the person I had complained to was my new manager’s wife, and the second was, in his own words, ‘that he would come down on me like a ton of bricks if I crossed him…’

What a great start to a job! I had moved to a new city, and had been at work for less than a morning when I had my first run in with the first style of bad manager. I didn’t stay long enough to find out what Mr Agressive would do next. Bad managers are a major issue. Research from Approved Index shows that more than four in ten employees (42%) state that they have previously quit a job because of a bad manager.

The Dream Type Of Manager

My best manager was a total opposite. A man who had been the head of the UK tax system and was working his retirement running a company I was a very junior and green employee for. I made a stupid mistake, one which cost a lot of time and money and I felt I was going to be sacked without doubt.

I was nervous, beating myself up about what I had done, what would happen. At the end of the day I was called to his office, he had made me wait and I had spent that day talking to other employees, trying to understand where I had gone wrong. It had been a simple mistyped line of code which sent a massive print job out totally wrong. I learn how I should have done it and I fretted.

My boss asked me to step into his office, he asked me to sit down. “Do you know what you did?” I babbled, yes, I had been stupid, I had not double-checked or asked for advice when I was doing something I had not really understood. It was totally my fault. He paused. “Will you do that again?” Of course I told him I would not, I would always double check, ask for help and not try to be so clever when I was not!

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“Okay…”

That was it. I paused and asked, should I clear my desk. He smiled. “You have learnt a valuable lesson, I can be sure that you will never make a mistake like that again. Why would I want to get rid of an employee who knows that?”

I stayed with that company for many years, the way I was treated was a real object lesson in good management. Sadly, far too many poor managers exist out there.

The Complete Catalogue of Bad Managers

The Bully

My first boss fitted into the classic bully class. This is so often the ‘old school’ management by power style. I encountered this style again in the retail sector where one manager felt the only way to get the best from staff was to bawl and yell.

However, like so many bullies you will often find that this can be someone who either knows no better or is under stress and they are themselves running scared of the situation they have found themselves in.

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The Invisible Boss

This can either present itself as management from afar (usually the golf course or ‘important meetings) or just a boss who is too busy being important to deal with their staff.

It can feel refreshing as you will often have almost total freedom with your manager taking little or no interest in your activities, however you will soon find that you also lack the support that a good manager will provide. Without direction you may feel you are doing well just to find that you are not delivering against expectations you were not told about and suddenly it is all your fault.

The Micro Manager

The frustration of having a manager who feels the need to be involved in everything you do. The polar opposite to the Invisible Boss you will feel that there is no trust in your work as they will want to meddle in everything you do.

Dealing with the micro-manager can be difficult. Often their management style comes from their own insecurity. You can try confronting them, tell them that you can do your job however in many cases this will not succeed and can in fact make things worse.

The Over Promoted Boss

The Over promoted boss categorises someone who has no idea. They have found themselves in a management position through service, family or some corporate mystery. They are people who are not only highly unqualified to be managers they will generally be unable to do even your job.

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You can find yourself persistently frustrated by the situation you are in, however it can seem impossible to get out without handing over your resignation.

The Credit Stealer

The credit stealer is the boss who will never publically acknowledge the work you do. You will put in the extra hours working on a project and you know that, in the ‘big meeting’ it will be your credit stealing boss who will take all of the credit!

Again it is demoralising, you see all of the credit for your labour being stolen and this can often lead to good employees looking for new careers.

3 Essential Ways to Work (Cope) with Bad Managers

Whatever type of bad boss you have there are certain things that you can do to ensure that you get the recognition and protection you require to not only remain sane but to also build your career.

1. Keep evidence

Whether it is incidents with the bully or examples of projects you have completed with the credit stealer you will always be well served to keep notes and supporting evidence for projects you are working on.

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Buy your own notebook and ensure that you are always making notes, it becomes a habit and a very useful one as you have a constant reminder as well as somewhere to explore ideas.

Importantly, if you do have to go to HR or stand-up for yourself you will have clear records! Also, don’t always trust that corporate servers or emails will always be available or not tampered with. Keep your own content.

2. Hold regular meetings

Ensure that you make time for regular meetings with your boss. This is especially useful for the over-promoted or the invisible boss to allow you to ‘manage upwards’. Take charge where you can to set your objectives and use these meetings to set clear objectives and document the status of your work.

3. Stand your ground, but be ready to jump…

Remember that you don’t have to put up with poor management. If you have issues you should face them with your boss, maybe they do not know that they are coming across in a bad way.

However, be ready to recognise if the situation is not going to change. If that is the case, keep your head down and get working on polishing your CV! If it isn’t working, there will be something better out there for you!

Good luck!

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