The US unemployment decreased to 3.4% in March 2023 meaning the labor market has become increasingly tighter. The tendency is that there are more jobs available than there are resources to fill these roles. Could freelancing be a cause of the new labor market?
According to Edelman Intelligence, 56% of non-freelancers are considering freelancing in the future. It's no surprise employers have increased wages by 3.6%, the highest since 2008, to keep existing employees. Add the spikes in inflation this year to these labor shortages, businesses are struggling to compete for talent.
Accepting this new work reality and acting on finding alternatives is paramount to surviving today's market. Options such as using freelancers in your business can be the right solution. We've outlined how your business can benefit from it and beat today's labor market.
Freelancing is trending
The pandemic added +12% new freelancers, and we're currently at 59 million freelancers in the US. It's now projected that by 2027, 50% of the US workforce will freelance. Remote work flexibility and the earnings potential in freelance tell us that freelancing is here to stay.
Working with freelancers can combat labor shortages
Labor shortages present a challenge to any business challenging businesses to work to their full potential. Companies need to meet the demand of their daily operations and revenue targets. Struggling to obtain that talent can pause your business in negative ways. You could be struggling to hire locally and competing with a national or global labor market; you may not be able to offer higher salaries, a better benefits package, or more flexibility.
It's no secret we're promoting hiring a freelancer to be a great solution to your business, as we've seen how it helps our current clients. Freelancers can collaborate with your business on a contract basis, on a project basis, or on a monthly retainer. Our solution does not require you to offer the usual employee benefits, instead, you meet the demands of a freelancer's value.
Freelancers vs employees
Freelancers should not replace your current workforce but be a supplement to your operations. Adding freelancers should promote a hybrid workforce model, where freelancer talent can fill in skill gaps and areas of expertise. Having an extra set of hands might even prevent employee burnout.
Below are the differences between hiring a freelancer versus an employee:
1. Business Agility
Freelancers can be found on platforms like Buzzzy, where we allow you to add or replace talent needs quicker than an employee. Freelancers are individuals open to adding value on day one and for a shorter time.
2. Freelancers cost less
While freelancers appear more expensive due to higher costs for a project or by the hour, you save on the overhead you typically invest with employees. You're not required to pay sick time, health insurance, and other benefits. Freelancers typically bill with these benefits in mind; as self-employed contractors, they handle their own benefits. Buzzzy handles many of these administrative tasks for our freelancers, freeing both sides, resulting in more straightforward transactions.
3. Wider talent pool
You can hire freelancers from any state and in many cases, from other countries and backgrounds. According to Forbes, diversity leads to better profits. Having a wider talent pool allows you to effectively collaborate with freelancers remotely. At Buzzzy, our freelancers work remotely, allowing you the flexibility to hire from any part of the world.
4. Access to experts
Freelancers offer the expertise your full-time employees may not have. When you hire a freelancer, you pay for this expertise, as they have a record of successfully working in their particular niche. Since they are hired for a short time, they can also give your current employees exposure and training in new fields. Buzzzy connects you to the right freelancer based on the expertise your business requires.
5. Streamlined hiring process
Hiring a freelancer allows you to have someone jump right into your business. Onboarding seasoned freelancers are much quicker than an employee, as they typically come in to collaborate on a particular project and come in with expertise that does not require skills training. Freelancers are great options to meet your deadline, and Buzzzy will connect you in less than 24 hours with the right person, helping you meet that strict deadline you have.
Hire freelancers with Buzzzy
Buzzzy was built to build a solid bridge in the freelance economy. We help businesses connect faster than ever, match-making you with the right freelancer in less than 24 hours. All while facilitating accessible payments, project management tools, and implementing direct communication. Fill out our request form today, and share your project needs to get you started as soon as possible.
Image Source: Anna Shvets