5 Reasons Why Freelancing Is The Future Of Work

In a corporate world where “business as usual” has been the norm for decades, it can be hard to see beyond established boundaries. But the freelance revolution is already here and it’s redefining what it means to be a business owner or a career professional. Freelance work is on the rise for a variety of reasons, and if you’re considering moving into this type of career or hiring remote work, there are many benefits to consider. We’ve compiled five compelling arguments for why freelancing is the next big thing; it’s time to start thinking about your next move!

“Google Runs on Freelancers” screams a headline from Inc. If trends hold, we’re going to see a lot more of that headline. 

Given a crystal ball, most of us would probably look into the future and see the traditional employment model continuing to crumble.

And that’s exactly what we’re seeing today: more and more companies are turning away from hiring full-time employees and toward freelancers (Future Workforce Pulse Report). 

A major driver of this trend according to the Global Work-from-Home Experience Survey is the “Reduced fear about work-from-home among managers and executives” – in simple terms, companies now trust freelancers to deliver quality work. Add to that: the increased desire by professionals to make a living from their expertise “on their own terms.” 

Nowadays, even well-established companies are hiring freelancers (FlexJobs). With the rise of freelancing, we’ve begun to see a number of impressive statistics emerge: 

  • According to this report from Brodmin using their data and those from Mastercard: The “Global Gig Economy is expected to grow from $204 billion in 2018 to $455 billion in 2023, a Compound Annual Growth Rate (CAGR) of 17.4%.”
  • There would be a steady increase in freelance workers. For example, by 2027 there would be 86.5 million US Freelancers – 50.9% of the total workforce (Statista)

That’s not all:

  • 78% of freelance workers claim to be happier than their counterparts employed in traditional jobs (McKinsey Global Institute). Also the same report claims that, “roughly one in six people in traditional jobs would like to become a primary independent earner.”
  • Most freelancers view their choice in freelancing as a long-term career choice. This is per the finding of Freelancing in America study.

Given these numbers (findings), one might stop and wonder why the traditional model of full-time employment is on the decline.

5 reasons why the future of work is freelancing:

Cost Savings

One of the primary reasons for this trend has to be cost savings. Businesses can avoid lots of overhead cost and save millions of dollars when they hire freelancers

A company typically has to spend a lot of money in order to hire an employee, let alone offer benefits. 

As for freelancers, they’re typically not offered benefits, and the employer only pays for services rendered plus, since freelancers are also working remotely it saves companies money on office space and other overhead expenses.

That’s not all…

The pandemic highlighted another reason why companies are gravitating towards freelancers: lost hours. 

When the pandemic struck, a lot of traditional offices had to shut down. This means loss of revenue, and yet, they had to continue paying full-time employees. On the other hand, businesses that relied most on freelancers didn’t take much of a hit!

This has forced companies to reevaluate how they conducted business and the model that made the most sense for them: and hiring freelancers is a popular answer.

This leads us into number three…

Productivity! Yes, you read that right: hiring freelancers is a great way to boost productivity.

Think about it, we all have those moments when we’re just not feeling it. With traditional employees, managers have to deal with that annoyance on a daily basis since they’re not always at their best either! 

However, with freelancers, it’s been reported that the freedom to work from anywhere, at any time they want has led to productivity gains of up to 51% (FlexiJobs Survey) and up to $1.3 billion of annual value in another study (Harvard Business Review).

There’s also the fact that freelancers are typically more motivated than traditional employees. With freelancers, there’s no need for micromanagement since they’re typically more self-motivated and driven to succeed!

It all adds up to one thing: freelancers are cheaper to hire, more productive and they don’t need micromanagement which would save companies even more money.

This is a pretty compelling reason to hire freelancers, right? You’d think so!

Freelancing is flexibility and Independence

Another reason why the future of freelancing looks bright is that it is flexible. 

“I am my own boss” is a phrase you’re likely to hear from freelancers quite frequently, and it’s easy to see why. 

For many people working as a freelancer means being able to work flexible hours, take time off whenever needed and make their own schedule. And this has led to greater job satisfaction.

People want more freedom and control over their work lives these days, and that’s a trend that employers are starting to recognize. 

By hiring freelancers instead of full-time employees, employers can offer more flexible hours and better work-life balance for their workers. 

For businesses, flexibility is also an attractive draw:

For one, it’s a lot easier for management teams of businesses that are spread out across the world to deal with freelancers than it is to hire and manage full-time employees. Location no longer matters!

It’s also a lot easier for these businesses to scale up or down depending on the needs of their business. For example, a company might have a lot more work during certain quarters or seasons and then less during others. With freelancers, this is not a problem: they only pay the freelancer when work needs to be done!

Of course, there are some downsides to the gig economy. 

For starters, freelancers don’t receive the same level of benefits as full-time employees do; however, this is something that could change in the future as freelancing continues to grow. 

Another potential downside is that employees working under a freelance model might feel isolated and disconnected from their co-workers. 

Despite these downsides, it’s clear that the gig economy is here to stay and will only continue to grow at a rapid pace.

Continuous Advancement in Technology

Advances in technology are disrupting the traditional employment model – with freelancing the tip of the spear. 

The rise of freelancing is in large part due to the fact that advances in technology have made it easy for anyone, regardless of their skill set, to launch a freelance business.

The same way the internet revolutionized the way we buy and sell goods, technology has completely transformed how people find work; solving one of the most frustrating issues in freelancing: finding your next gig.

And it’s not just freelancers that are benefitting from this revolution. Companies are using technology to find and hire freelancers as well, which saves them a lot of time and money in the process. 

We’re already seeing a number of different technologies come into play: from online platforms like Hiremotely.com  where clients can find freelance developers, to apps that help workers track their hours and automatically send invoices. 

Looking into the future, technology is going to continue to revolutionize the way that freelancers work, and it might even help them answer one of their biggest challenges: how can freelancers find work? 

The answer will likely come in the form of matching technology, which is already being used by companies like Uber to connect their users with a driver.

In the future, technology will play a larger and larger role in freelancing by making it easier for companies to hire them while simultaneously making it easier for freelancers to find work. Matching technology will likely be adapted to help freelancers find clients as well. For example, it’s possible that companies will use technologies like chatbots to automate the process of hiring freelancers.

It is important To note: There is a lot of fear surrounding technology and the future. 

However, new technologies like machine learning and automation could actually make it easier for freelancers to have a greater level of control over their work. 

Technologies like this will also help the gig economy continue its high growth rate, which is good news for freelancers and companies alike.

Greater Diversity and Inclusion

Freelancing is making it possible for people from underrepresented groups to find work in a big way.

Freelancing is helping level the playing field by giving anyone with a computer access to the gig economy.

In fact, it allows them to work from home and often enables them to avoid typical hassles and stereotypes that they might experience in the office. 

This is important because it means that people live their lives without sacrificing their ability to earn money.

The World Bank estimates that freelancing has pushed 50 million people in developing countries into the global workforce and that number is only going to increase.

The greater inclusiveness found in freelancing can be summarized in one sentence: the barrier of entry is lower and cheaper than in other types of work – this means anyone

The future of work will likely continue to include a diverse range of people from different backgrounds, and this is something that we should support. It

By providing marginalized and underrepresented groups with the opportunity to work, freelancing is making strides in inclusion and diversity. And this would only continue to make it a better alternative than traditional work for these groups, now and in the future.

Unlimited Income Potential

This CNBC headline – “Skilled freelancers, earning more per hour than 70% of workers in the US, don’t want traditional jobs” sums up this point.

Freelancing is a way to help freelancers achieve financial freedom. It provides an opportunity for unlimited income potential through the power of the internet.

And millions of people are making a living by freelancing now more than ever in areas like web design, graphic design, video editing, coding, blogging, voiceover work, food delivery, cleaning, errands – you name it, there’s a gig for it. There’s no need to sign a contract, and there’s nobody taking a cut of your profits. It’s all up to you.

Since this type of work style offers the opportunity to earn additional income with greater flexibility, it’s no wonder professionals are making the switch.

Plus, an increasing number of companies now prefer to hire remote workers having identified the benefits. That means there are more opportunities than ever for freelancers. And as the demand for your services increases, so does your paycheck.

Another important consideration for freelancers is that they can offer their services to multiple clients. As a freelancer you’re not limited to “just your employer.” Rather, you can offer your services to as many clients as you can handle from any part of the world. 

In the end:

  • Companies now realized there is a greater incentive to hiring remote workforce which in turn is increasing the demand for freelancers;
  • More professionals now realize they can achieve financial freedom while enjoying what they enjoy doing with greater independence and flexibility.

The combination of these two factors means the course is set for freelancing to become the future of work.

Conclusion

Freelancing has been happening for a long time, and it’s not going to stop. In fact, the world is adapting to the work of freelancers much quicker than you realize, and it will accelerate. Why? Because the Internet allows anyone with creativity and tenacity to get a foothold, no matter where they are. For young, talented people who want to earn money for their passions rather than just being an employee, freelancing is the next big thing. And savvy businesses are now prepared to leverage the benefits that come with this future.

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Christophe Rude

Christophe Rude

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