Thanks to burgeoning technology, more and more of the group known as Gen Y (Generation Y, also known as MILENNIALS and classified as those who were born from 1981 to 1996) are choosing freelancing as a method of employment. The freedom and flexibility of freelancing allows them to choose which projects to work on, how much to charge, and afford them the luxury of working from anywhere in the world.
This model allows for flexibility for the worker, but for the employer as well. But this means that traditional means of hiring will be undergoing a transformation as the freelancing trend is poised to grow exponentially in the near future.
In order to keep up with this trend and remain competitive, traditional companies will need to make changes in how they hire, pay, and manage workers. Here are a few ways in which the traditional company environment will change as a result of this explosion in freelancing activity:
Changes in onboarding processes-Traditional hiring included a prospective employee sending a resume to a company who had a vacancy and then hopefully scheduling a face to face interview. With PER PROJECT freelancing, employers will often seek out freelancers to complete projects and “interviews” will be done either by back and forth emails, messaging platforms, or video conferencing software such as SKYPE. The employee may not be local either or could reside anywhere in the world.
Expansion of virtual applications and cloud-based software-Because the freelancer will be working virtually, they will have to have access to business related material provided by the company via emails or by accessing via cloud-based software. In order to meet the requirements of such a working relationship, many companies will need to upgrade their internal systems to include cloud-based software to ensure their company forms, materials, client base, etc. is available to their freelancers as needed.
Increased savings for worker and office space overhead-While changing long held business practices and updating computer systems can often be expensive, there is an upside for employees in this burgeoning new market. Because of less need for on-site workers, it is likely that many companies and small businesses can down-size their office space. In addition, because these workers will technically be contract vs. employees, companies will save on additional benefit expenditures and ongoing payroll expenses as once a project is complete, they no longer must pay that worker.
The world of freelancing is likely here to stay and those who are poised to take advantage of this unique situation (both freelancers and hiring companies) will benefit as the marketplace increases.