After celebrating Independence, we thought it would be a fitting time to shine a spotlight on independent contractors and freelancers. In a recent survey conducted among Compete users, 65.8% believe that up to 10% of the workforce can be replaced by independent workers, with another 23.7% considering that up to a quarter of the workload can be outsourced.
The independent workforce in the US is significantly growing, rising to 51.1 million in 2021, a 34% increase, and expected to grow to over half of the working population, 86.5 million, by 2027.
The key factors for independent workers choosing this path are higher income potential, autonomous work, and prioritized flexibility. The majority are satisfied with their choice and report a stronger feeling of job security.
Main Advantages for outsourcing:
- Improve cost efficiency and reduce risk
- Support a diversity of business processes
- Specialized expertise for higher productivity
- Flexible resources for fluctuating workloads
- Ready access to talent requiring minimal training
Similar to the hybrid workplace model, businesses are beginning to incorporate a hybrid workforce as well. The downside? This limited form of work can result in a lack of commitment, which in turn can lead to difficulty developing value.
This article is devoted to building working relationships that harness loyalty in order to become the preferred employer that preserves top talent.
*Note – if handling Independent Contractors may not be part of your job, you can communicate this to the relevant parties within your organization.