When you think gig economy, what immediately comes to mind?
Although the term “gig work” originates with the musicians whose goal it was to catch temporary opportunities, we couldn’t blame you for thinking of your Uber driver, Airbnb host, or Postmates delivery person.
While it may not occur to us to call them freelancers, they are part of a broad and growing sector of flexible workers.
Contingent workers (the U.S. Bureau of Labor Statistics’ [BLS] preferred term for those engaging in various forms of temporary employment) have existed long before modern companies, like TaskRabbit and Fiverr, started capitalizing on a task-based work model.
What’s the current state of the gig economy?
You might say that the “gig economy” buzzword is an old idea that has been rebranded now that wide access to technology supports its expansion.
Contingent workers are defined as freelancers, independent contractors, consultants, temporary contract workers or other non-permanent workers that are hired on a project basis or to meet seasonal needs and include a large range of skilled and unskilled workers as well as high and low earners.
How big is the gig economy?
Unfortunately, it’s notoriously difficult to track and figures differ.
- 2005: BLS’ most recent Contingent Worker Supplement found that 8% of all American workers (5.9 million people) were contingent workers.
- 2017: The Freelancing in America study by the Freelancers Union and Upwork estimated that 36% (57.3 million) of workers freelance, 63% of them by choice.
- 2018: An extensive report from Edison Research reveals that 24% of Americans 18 years and older earn income in the gig economy. Extra reading: Who takes part in the gig economy? The eye-opening statistics vary across age, gender and race.
Why is freelancing so popular nowadays?
Here’s the truth. Whether they drive for Uber, sell for Mary Kay, do seasonal retail and restaurant work or freelance in web design, people who take part in gig employment are a tale as old as time even if they’ve (likely) never heard the phrase “contingent worker.” They may be after supplemental or a main source of income. In many cases, they’re also after independence, creativity, a flexible schedule, and stronger work-life balance.
And companies are after them too. Freelancers can be an asset to any organization that wants to have access to a network of pre-vetted candidates, save HR time and resources, and lower company costs.
Should you hire a contract worker?
There are some things you need to consider before hiring a freelancer.
Do you need to hire someone fast? Gig workers require less vetting and onboarding and can often hit the ground running faster.
What is the scope and timeline of your project? Since contract workers do not receive a salary or benefits, they help lower company costs for short-term projects. If you are engaging a freelancer for the long-term, a clear statement of work and strong communication is key to check you are consistently on the same page.
Will you need freelancers on an ongoing basis? Maintaining a reliable talent pipeline requires creativity even when it comes to hiring contract workers. Since many gig jobs are used to supplement income and gig workers naturally don’t have the same level of loyalty to your company, be prepared to replace them if need be.
Here’s how to attract and collaborate with freelancers
Keep the hiring process kosher
Laws governing contingent work are always changing, so be sure to keep vigilant and be compliant with the latest regulations. For example, see the six questions that help organizations draw the line between employees and independent contractors as well as NYC’s landmark “Freelance Isn’t Free” Act.
Be transparent about scope, timeline or deadlines, fees and payment methods in your freelancing contract, and stick to what you’ve agreed to keep all parties happy. Since a contract worker is not a traditional employee, remain respectful of their time and needs, especially if you are not their only client.
Tailor the job description
If you’re going the traditional route, keep in mind you are not looking for the traditional worker (and that’s how you want it!). Be as clear as possible about expectations. Freelancing is naturally pro-project, so a list of job requirements may not be useful here; not to mention that when it comes to gig workers, resumes are out while experience is in.
Consider what it is about your company that is likely to attract a gig worker, and possibly, incentivize them to stay. It likely won’t be 401K contributions. Company culture is not a freelancer’s biggest concern but can be a perk if team interaction is necessary or there is a long-term expectation. Meaningful work and flexible scheduling, on the other hand, may stand out.
Simplify your process
Candidates across all industries prefer short application times and accessible forms. Since hiring freelancers takes less time, keep the application short too. This will boost your numbers and widen your selection, not to mention reduce the risk of ghosting. Automating responses helps you stay on top of applications while keeping candidates aware of your timeline, but don’t forget to personalize where you are able. A response that starts with “Dear Applicant” doesn’t leave a good impression for any candidate.
Meet them where they’re at
It’s easier than ever to find freelancers on online marketplaces like Upwork, Fiverr, and Freelancer.com where they advertise their services. LinkedIn is another popular option. If you’re worried about skills fit and want to ensure proper vetting, reach out to hiring experts like The Deamer Group who have access to a network of qualified talent.
Last thoughts: Never forget employer branding
Remember that in a sense, gig workers are always candidates. What sets them apart from traditional employees is that they are always looking for the next opportunity, especially if a project leaves them with leftover time or they need supplementary income.
That’s why a conversation about hiring freelancers can serve as a good reminder to focus on your employer branding, particularly the meaningful work opportunities you offer. After all, that’s your company’s je nai se quois: the prize in the cereal box that seems like a perk but is actually the reason you choose to buy it.
This is also useful for traditional recruiting; after all, most of your hires will still likely be full-time positions. You can continuously improve your overall recruiting and retention strategy by highlighting company values and culture, listing company perks, and publishing real workplace photos, employee testimonials and engaging videos that show off the employee (and contingent worker!) experience.