Why business are looking to freelancers as a new talent pool

In recent years, the way we work has undergone a significant shift, with the rise of the gig economy and the increasing availability of skilled freelancers. This trend has accelerated in the wake of the COVID-19 pandemic, as more and more businesses look for flexible solutions to their staffing needs. The following article uses US figures just because the Aussie facts are a little hard to verify!

Freelancers contribute $1.3 trillion to the United States’ economy each year.

Australian businesses, in particular, stand to benefit from tapping into this pool of talented and experienced freelancers. Freelancing is expected to grow by approximately 14% over the next six years. So why should Australian businesses use skilled freelancers to get stuff done in 2023?

Here are some key reasons:

Access to a wider pool of talent

By using skilled freelancers, businesses can tap into a much larger pool of talent than they would be able to if they relied solely on their existing staff or traditional hiring methods. This can be especially valuable for small or niche businesses that may not have the resources to hire full-time staff for every role.

• The majority of freelance workers earn the same or more money than they did when employed at a traditional job.
• A 2020 survey of 6,000 U.S. workers over the age of 18 found that 75% of freelance workers earn the same or more money than they did when employed at a traditional job. This means many people are leaving the safety and constraints of traditional work models and are backing themselves in the free open market.

Computer programming, marketing, IT, and business consulting are top industries for freelancing, with 50% of freelancers providing such services.

Flexibility and scalability

Freelancers offer a flexible and scalable solution to businesses' staffing needs. They can be engaged for short-term projects or ongoing work, and their hours and workload can be adjusted as needed.

This can be particularly useful for businesses that experience fluctuations in demand or have specific project-based needs. Freelancers are becoming a strategic advantage to many organisations looking to compete better.

36% of freelancers are full-time, long-term freelancers.

Cost savings

Hiring freelancers can be a cost-effective way for businesses to get work done. Freelancers typically work remotely, so businesses don't have to worry about providing office space or equipment. They also don't have to pay for benefits or other overhead costs associated with full-time employees.

Faster turnaround times

Skilled freelancers are often able to complete work more quickly than traditional employees, as they are typically highly specialised and focused on delivering results. This can be particularly valuable for businesses that need to meet tight deadlines or respond quickly to changing market conditions. Big companies need agile, nimble players and smaller business need skilled great professionals to help them get their business up to the next level.

• Up to 70% of small businesses use freelancers.
• It’s not just the big names that use freelancers — in fact, small businesses stand the most to gain from the low overhead that freelance work offers. Half of small businesses have used a freelancer in the past three months, and 81% plan to use freelancers again or at some point in the future.

Increased innovation and creativity

Freelancers often bring fresh perspectives and innovative ideas to projects, as they are not constrained by the traditional ways of doing things within a particular organization. This can be particularly valuable for businesses that want to stay ahead of the curve and differentiate themselves from their competitors.

Of course, there are some potential downsides to using freelancers as well, such as the need to manage remote workers and ensure quality control. However, these challenges can be mitigated through careful selection of freelancers and clear communication and expectations.

Final thoughts

In conclusion, Australian businesses have a lot to gain by tapping into the skilled freelancer market in 2023. By doing so, they can access a wider pool of talent, enjoy greater flexibility and scalability, save costs, achieve faster turnaround times, and foster innovation and creativity. With careful planning and management, businesses can leverage the power of freelancers to achieve their goals and stay competitive in a rapidly changing world.

The future is bright and it is always the most adaptable that will survive, not the strongest!