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The pandemic has enforced organisational structure rebuild on account of the massive lockdowns that the entire world is still undergoing. What is the result of this restructuring? It has become easier for businesses to access a vast talent pool and get dynamic engagement of skilled experts in non-core roles. The “gig” economy or freelance economy is growing aided largely by the easy access to technology.
MSMEs frequently hire consultants or external organisations to meet their own staffing needs for niche services such as auditing, taxes or IT and marketing related work. It isn’t viable for them to have full time resource persons for these situational engagements. The growing freelance market with opportunities gives the business width to engage resources beyond the geographic bounds of the business. So, if one can get highly qualified and aptly skilled videographer in a different region or find a local resource person for legal queries for business expansion then they can hire a freelancer.
Furthermore, hiring freelancers is less time consuming and more cost-effective than hiring a full-time resource person. Unlike a full-time job hire, with freelance candidates there is a single contract for a project and the terms of the contract are straightforward and pertain to the single project. So, MSMEs can save a lot in terms of human resource investment and find someone in short notice for the project.
The relationship between the client and freelancer is symbiotic and both are equally invested in the project. For the freelancer the time spent working on a client’s project is an investment that they are making which will translate into monetary returns and an addition to their portfolio. The employability in the freelance market is determined by the freelancer’s skill and experience. Most companies hiring them are filling a one-time project requirement and changing them mid-way would be a liability in the sense that they would have to go through the hiring process once more which would delay the project.
The global gig economy is set to grow to US$455 billion by 2023 at a Compound Annual Growth Rate (CAGR) of 17.4%. The number of freelance workers is increasing steadily around the world largely because it offers flexibility in scheduling, gives people the opportunity to explore wider areas to test their skills and is also an additional source of income. There is a growth in professional services as gig work that gives the service provider freedom to choose for whom and how much they will work. Many gig workers are employed full-time with reputed companies and pursue freelance projects on the side.
Hiring freelancers gives the business an opportunity to work with talent that they previously would not have been able to afford. It exposes them to top tier talent and this gives boost to their business too.