What You Need To Know About The Future Of The Freelance Economy
It’s hard to understand how things are changing so fast in this world, especially if you will not take the time to investigate them. Life can grow in many ways right in front of our very eyes, but since our mind is often engaged constantly in the many things that are going on around every moment of the day, we often fail to appreciate all the things that are happening around fully. Click Here To Go Straight To Our Online Tutorial
The Transformation of Employment Structure
Indeed, one of the most important paradigm shifts in our present world is the dynamic shape of the structure of employment. Before, businesses are strictly in-house operations and will look into employing the best local talent there is. Thanks to the Internet, a whole new world opened, and it’s now possible to do business with a worldwide pool of talent. There’s also a gateway to financial freedom for every person who desires to have it.
Nowadays, everyone seems to have a lot of options for freelancing job right at their disposal. We’re no longer tied down in a 9 to 5 structure and in a job that we absolutely dislike. Everyone is now free to pursue whatever it is that they want to do in life and the Internet serves as an essential toolbox that can guide people in every step of the day. A big percentage of the population is doing this nowadays. In the United States alone, 57.3 million freelancers have contributed $1.4 trillion to the country’s economy through freelance work.
Freelance Economy 2018
Nowadays, the workforce of every company is extremely diverse with some employees coming from various countries across the globe. The best talent available may not always be on your doorstep. Businesses are now able to easily source the best of the best from all parts of the world and operate in a working structure that can help to get things done easily.
The Internet has provided businesses with a tactful, resourceful and a highly versatile workforce. Perhaps, the only downside to this process is in having to pay an excessive amount of fees for payroll, staffing, and various recruitment platforms. Most payment providers charge a fee of 2% to 4% of the entire value of the transaction, which reduces the overall budget of a company and also lowers down the amount that workers will earn for the job that they do.
Skyllz has created an interesting twist in the future of talent acquisition. Instead of a CV or resume, which a potential employee needs to come up with and send to various employers, Skyllz came up with a platform that showcases the talent and skills of an individual. This platform has shifted the focus of employment acquisition from the qualifications that an individual possesses on paper to a format showing proofs of skills, where employers can search physically and come up with work examples that are suitable to their needs.
The platform of Skyllz works just like a double-edged sword, which brings inherent benefits to both the workers and employers who are using it. Because of the acceleration of technology in the recent years, we’ve seen plenty of data related jobs, new marketing techniques, and new coding technologies. A lot of those who have solid experiences in these fields do not necessarily have the qualification to pursue it. With the platform of Skyllz, workers no longer need to create resumes. Instead, they will concentrate more on the work where they do so well and showcase their talent through actual work samples at the platform and create an online portfolio.
Nowadays, employers rely on a structure that allows them to choose the best talent and they also have the option to create challenges for prospective employees to work on. This gets rid of the painful process of sifting through the hundreds of resumes and CV. They now have a dynamic acquisition system that allows them to choose the best talent according to the individual’s key skills.
The people behind the platform of Skyllz are the same people who created the Workkola, which is a talent-acquisition platform that has more than 1,500 companies and over 20,000 students on board. Because of the inherent benefits that the blockchain technology has added to the talent acquisition ecosystem, they have decided to come up with the Skyllz platform.
The On-Demand Workforce Rise
Dynamic and highly mobile workers help organizations in supplementing their existing set of core employees to meet with the challenging and complex business environment. Also, factors like increased access to the technology and the millennial impact towards corporate culture have also contributed to this shift.
Jeff Antonelli, the director of the Human Capital practice of Berkeley Research Group, the growth of the augmented workforce is usually motivated by various considerations that are advancing in the business world of today, which has compelled several organizations to have a second look of their frame of mind and approaches towards their hiring process and structure. Technology has also made it possible for both employers and employees, including independent contractors to propose and accept jobs without any boundaries, not even the employee’s location.
It’s much easier to look for the right talent today, due to the global pool of workers. Also, these workers are often very driven and are superior performers in their field and capable of delivering work with verve and quickness.
According to Jeff, “on-demand workers are not likely as tied up to the organizations and are therefore more inclined to transient behaviors.“ Contractors are usually not afraid to change employment, but losing a contract worker could cost a company less than losing a full-time employee who is capable of doing similar work. Even though contract workers have less loyalty to their job, the worker will not cost an organization a lot of money. In fact, companies are said to be able to save 20 to 30% cost if considering things like worker’s compensation, health insurance, paid vacation leaves, etc.
Furthermore, according to freelance economy statistics, the on-demand employee is also just as easy to ramp down in the event of low work periods and is less noticeable to stakeholders and the media who are often alarmed with layoffs and corporate restructuring. Thus, this kind of relationship can benefit both the worker and the employer. The worker is also more durable and equipped for any changes that could come along the way.
The company is also considering appointing a large team of talent through crowdsourcing models and challenges them to solve some important R&D problems and to come up with some of the most innovative product ideas. In fact, P&G’s external talent has been said to play an important role in the development of hundreds of successful products.
Freelance Economy Growth
Kristine Dery, a research scientist of MIT School of Management, has attributed the rise of on-demand contract workers to these three main reasons:
Companies that run freelance websites would prefer a more flexible workforce that can meet with the demands of the unpredictable workflow.
In this digital world, it’s becoming increasingly difficult to predict the kind of skills that a company requires, so they would rather choose flexibility in skills.
The digital talent of freelance work at home jobs do not always require work in a traditional FTE basis. Therefore, they need to be more flexible in the kind of working relationship that they need.
Researchers have projected that on-demand workforce will continuously increase and is in fact expected to become a long-term trend. The United States Bureau of Statistics has predicted that employment services are expected to continue as one of the biggest drivers of the company, and in the long run, will add more than 600, 000 jobs in the next decade, which is almost twice as the growth rate for the overall economy in the same period.
With the increasing popularity of freelancing platforms online, it’s now easy for organizations to tap talents. Platforms like oDesk, Elance, and TopCoder are said to have contributed to more than a million jobs over the past decade. This trend is not only limited to startups, and in fact, SMEs and Fortune 500 companies have also relied on outsourcing contracts. Organizations are not just outsourcing their administrative processes. They are also leveraging the on-demand workforce to hire staffs that are capable of handling a higher-level and knowledge-based process.
Likewise, the talent and skills that on-demand workers have are changing. With the increasing focus on specialization within the workplace and heavy dependence on project work in various knowledge-based organizations, professionals who are highly-qualified are taking up the positions that are previously available only to full-time employees.
Online platforms are important for a curated hybrid model. Companies such as Deloitte are investing in online platforms that will allow a much broader workforce to be able to work on certain projects as they are expected.
These platforms will not only help to facilitate the distribution of skills but also fosters relationship in between the organization and the talent. Constant conversation encourages people to share their knowledge and experiences. Freelancers who are a part of the company training and onboarding are maintained for people to disengage or engage quickly. As a result, communities are usually built beyond the traditional walls of FTE.
Companies like TopCoder, that offer freelance jobs for beginners, would extensively utilize their platform not only to sort out solutions to the challenges of coding but also to build capabilities, create community, and develop networks. The decision built around freelancer and FTE balance must be a choice that companies have to make instead of something that’s being forced on them.
Top 10 FreelanceTalent Trends
Talent Mobilisation – With the increasing popularity of gig work and the proliferation of technology, not to mention the falling of geographical walls, the organization must reconsider how they could access, win, and manage their talents.
Robots in the Break Room – Automation and robotics are transforming the typical workplace and are changing the way in which business is done. Companies must look for new skill sets to oversee and maintain within the digital workforce.
Insight-Driven Organization – With more and more business and market data being created day by day, human capital leaders must consider investing in talent analytics as this helps to improve the way they attract, source, engage, and retain talent.
The Freelance Economy – The popularity of the freelance economy provides employers a more cost-effective way to get access to a wide range of skills, although this also presents a challenge on how to effectively assimilate independent workers with the more permanent talents.
Millennials in the Workplace – The millennials are expected to create a positive influence on work habits and corporate values. However, they tend to lack the loyalty and leadership skills, which often remain a huge concern for organizations.
Embracing Technology – Adoption of technology has further enhanced the talent innovation and has played an important role for the organizations in determining the right amount of investment and in choosing the right innovation in a sea of HR-related solutions within the marketplace.
Integrated Talent – The integrated approach to talent can help to transform the way the employers would engage and manage their talents and help organizations to save up to 12% in the overall cost of recruitment.
Employer Branding – A successful employer brand can help acquire star performers to be part of the team, and this can’t be made possible without defining the value proposition of the employee.
HR Digitalization – Digitalization continuously elevates the HR function to be more forward-thinking, perceptive, and agile, and allows HR to be able to fulfill their role as business partner.
The Agile Workforce – Contingent or provisional talent is now considered an essential part of every business model, and organizations needed a game plan to maximize the value and impact of a flexible talent.