The gig economy and freelance workforce have undoubtedly reshaped traditional employment structures in the last decade. More and more companies, especially startups and small businesses, have turned to freelance workers to uncover unique opportunities for growth. Here are some tips to tap into this talented group, and how to use freelance workers to scale, adapt, and improve the efficiency of your business.
Embrace the Gig Economy Advantage
The gig economy currently makes up 30% - 40% of U.S. workers, and freelancers are predicted to constitute the majority of the U.S. workforce by 2027. And most companies, around 70%, have reported hiring at least one freelancer, according to research from Linkedin. It’s a diverse pool of talent that can’t be denied.
Small businesses can strategically leverage this growing resource for specific tasks while maximizing their full-time staff and earning some budgetary flexibility. But the key to success lies in understanding when and how to implement freelancers effectively. Around 50% of freelancers are "highly satisfied," with their work, and 17% are "satisfied" in the on-demand professional marketplace.
But just like full-timers expect certain workplace benefits, freelancers expect quality in their business relationships. While satisfaction might be high for those choosing gig work, the reality can look very different—and even unfair—across industries. Two enforcement actions out of Denver this year already, for example, expose the lengths to which some corporations will go in trying to exploit the “gig” business model. There’s a right way, and a wrong way, to elevate this sector of the workforce, explains Terri Gerstein, director of the Wagner Labor Initiative at the Robert F. Wagner Graduate School of Public Service at New York University.
“The cases demonstrate the spread of the exploitative gig business model far beyond Uber drivers and DoorDash food deliverers, to encompass a growing number of jobs that have long been performed by employees with legal protections, " writes Gerstein in the New York Times. “And the cases illustrate the urgent need for government intervention to safeguard core workplace rights.”
Strategies for Running a Successful Gig Economy Business
For businesses looking to use gig workers to benefit their business, and do so fairly, experts recommend clear communication from the jump. Finding and retaining quality freelance talent is rooted in a nurtured connection between the gig worker, the business, and the customer. Running a successful gig economy business means managing all three areas transparently.
Specifically, when it comes to building relationships with freelancers, experts say there are a few key areas that make this communication seamless.
For one, simplify: Make processes around contracts, assignments, and payment convenient for everyone. Prioritizing mobile-friendly and straightforward digital platforms can go a long way in improving communications in this realm.
Further, creating a supportive community among freelancers and your full-time staff can help break down workplace barriers and unite a team around their shared goals. Establishing systems and processes for workflow and feedback between these groups is crucial when integrating freelancers into a business.
And while companies might not be offering contractors the same benefits as full-timers, like healthcare and paid time off, businesses can consider how they can further their freelancers’ careers in other ways. Stipends for Wi-Fi and the devices needed to complete work can help balance their personal costs. Or, businesses can offer career advancement opportunities by providing additional training or offering the chance to work on more complex projects. These small benefits can be a great way to draw in skilled professionals.
Conclusion
As the gig economy continues to reshape the workforce, businesses must adapt and embrace the opportunities presented by freelance work. By strategically tapping into the diverse talent pool, implementing effective strategies for gig economy success, and integrating freelancers into their business models, companies can not only thrive in this evolving landscape but also foster long-term growth. The gig economy is not just a trend but a transformative force that, when harnessed correctly, can drive businesses to new heights.
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