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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 August 20, 2019

How to Find New Growth Opportunities at Work

How to Find New Growth Opportunities at Work

Career advancement is an enticement that today’s companies use to lure job candidates. But to truly uncover growth opportunities within a company, it’s up to you to take the initiative to move up.

You can’t rely on recruiter promises that your company will largely hire from within. Even assurances you heard from your direct supervisor during the interviewing process may not pan out. But if you begin a job knowing that you’re ultimately responsible for getting yourself noticed, you will be starting one step ahead.

Accomplished entrepreneur and LinkedIn Co-Founder Reid Hoffman said,

“If you’re not moving forward, you’re moving backward.”

It’s important to recognize that taking charge of your own career advancement, and then mapping out the steps you need to succeed, is key to moving forward on your trajectory.

Make a Point of Positioning Yourself as a Rising Star

As an employee looking for growth opportunities within your current company, you have many avenues to position yourself as a rising star.

As an insider, you’re able to glean insights on company strategies and apply your expertise where it’s most needed. Scout out any skills gaps, then make a point to acquire and apply them. And, when you have creative ideas to offer, make it your mission to gain the ear of those in the organization who can put your ideas to the test.

Valiant shows of commitment and enterprise make managers perk up and take notice, keeping you ahead of both internal and external competitors.

Employ these other useful tips to let your rising star qualities shine:

1. Promote Your Successes to Your Higher-Ups

When your boss casually asks how you’re doing, use this valuable moment to position yourself as indispensable: “I’m floating on clouds because three clients have already commented on how well they like my redesign of the company website.”

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Tell your supervisors about any and all successes. Securing a new contract or signing a new customer should be a cause for celebration. Be sure to let your bosses know.

2. Cultivate Excellent Listening Skills

Listen well, and ask great questions. Realize that people love to talk about themselves.

But if you’re a superb listener, others will confide in you, and you’ll learn from what they share. You may even find out something valuable about your own prospects in the company.

If others view you as even-minded and thoughtful, they’ll respect your ideas and, in turn, listen to what you have to say.

Check out these important listening skills: 13 Powerful Listening Skills to Improve Your Life at Work and at Home

3. Go to All Office Networking Events

Never skip the office Christmas party, your coworker’s retirement party, or any office birthday parties, wedding showers, or congratulatory parties for colleagues.

If others see you as a team player, it will help you rise in your company. These on-site parties will also help you mingle with co-workers whom you might not ordinarily have the chance to see. For special points, help organize one or two of these get-togethers.

Take the Extra Step to Show Your Value to the Company

Managers and HR staff know that it can be less risky – and a lot less costly — to promote from within. As internal staff, you likely have a good grasp of the authority structure and talent pool in the company, and know how to best navigate these networks in achieving both the company’s goals and your own.

The late Nobel-Prize winning economist, Gary Becker, coined the term “firm-specific,” which describes the unique skills required to excel in an individual organization. You, as a current employee, have likely tapped into these specific skills, while external hires may take a year or more to master their nuances.

Know that your experience within the company already provides value, then find ways to add even more value, using these tips:

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4. Show Initiative

Commit yourself to whatever task you’re given, and make a point of going above and beyond.

Position yourself so that you’re ready to take on any growth opportunities that present themselves. If you believe you have skills that have gone untapped, find a manager who will give you a chance to prove your worth.

Accept any stretch assignment that showcases your readiness for advancement. Stay late, and arrive early. Half of getting the best assignments is sticking around long enough to receive them.

5. Set Yourself Apart by Staying up on Everything There Is to Know About Your Company and Its Competitors

Subscribe to and read the online trade journals. Become an active member in your industry’s network of professionals. Go to industry conferences, and learn your competitors’ strategies.

Be the on-the-ground eyes and ears for your organization to stay on top of industry trends.

6. Go to Every Company Meeting Prepared and Ready to Learn

A lot of workers feel meetings are an utter waste of time. They’re not, though, because they provide face-time with higher-ups and those in a position to give you the growth opportunities you need.

Go with the intention of absorbing information and using it to your advantage — including the goals and work styles of your superiors. Respect the agenda, listen more than you speak, and never beleaguer a point.

Accelerate Your Career Growth Opportunities

A recent study found that the five predictors of employees with executive potential were: the right motivation, curiosity, insight, engagement, and determination. These qualities help you stand out, but it’s also important to establish a track record of success and to not appear to be over-reaching in your drive to move up in your company.

Try to see yourself from your boss’s position and evaluate your promote-ability.

Do you display a passion and commitment toward meeting the collective goals of the company? Do you have a motivating influence with team members and show insight and excellence in all your work?

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These qualities will place you front and center when growth opportunities arise.

Use these strategic tips to escalate your opportunities for growth:

7. Find a Mentor

With mentorship programs fast disappearing, this isn’t always easy. But you need to look for someone in the company who has been promoted several times and who also cares about your progress.

Maybe it’s the person who recommended you for the job. Or maybe it’s your direct supervisor. It could even be someone across the hall or in a completely different department.

Talk to her or him about growth opportunities within your company. Maybe she or he can recommend you for a promotion.

Not sure how to find the right mentor? Here’s How to Find a Mentor That Will Help You Succeed.

8. Map out Your Own Growth Opportunity Chart

After you’ve worked at the company for a few months, work out a realistic growth chart for your own development. This should be a reasonable, practical chart — not a pie-in-the-sky wish list of demands.

What’s reasonable? Do you think being promoted within two years is reasonable? What about raises? Try to inform your own growth chart with what you’ve heard about other workers’ raises and promotions.

Once you’ve rigorously charted a realistic path for your personal development within the company, try to talk to your mentor about it.

Keep refining your chart until it seems to work with your skills and proven talents. Then, arrange a time to discuss it with your boss.

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You may want to time the discussion around the time of your performance review. Then your boss can weigh in with what he feels is reasonable, too.

9. Set Your Professional Bar High

Research shows that more than two-thirds of workers are just putting in their time. But through your active engagement in the organization and commitment to giving your best, you can provide the contrast against others giving lackluster performances.

Cultivate the hard skills that keep you on the cutting edge of your profession, while also refining your soft skills. These are the attributes that make you better at embracing diverse perspectives, engendering trust, and harnessing the power of synergy.

Even if you have an unquestionably left-brain career — a financial analyst or biotechnical engineer, for example — you’re always better off when you can form kind, courteous, quality relationships with colleagues.

Let integrity be the cornerstone of all your interactions with clients and co-workers.

The Bottom Line

Growth opportunities are available for those willing to purposely and adeptly manage their own professional growth. As the old adage says,

“Half of life is showing up.”

The other half is sticking around so that when your boss is looking for someone to take on a more significant role, you are among the first who come to mind.

Remember, your career is your business!

More About Continuous Growth

Featured photo credit: Zach Lucero via unsplash.com

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