Hiring freelancers is a more efficient way of resizing or readjusting the company’s human resources. 

This has become an important strategy for large companies that witness high attrition or are compelled to relook at their employee structure or quality of human resources to stay abreast with current needs. 

For smaller-sized companies such as MSMEs and start-ups, the freelance job market fulfills a vital requirement for skilled professionals. 

The freelance market largely comprises the digitally enabled labor force which finds new employment opportunities, beyond the shackles of geographic boundaries and requisite qualifications. 

They enable businesses to maximize productivity with work scope covering skill heterogeneity, work schedule preferences, and experience among other things.

Meeting HR Efficiencies

Research shows that employers can eliminate inefficiencies and lower costs by introducing a dual job market within their Organization. 

This will comprise commitment workers who will cost more (because of regular monthly salaries and allied HR allowances) and freelance workers who will cost less (because they are paid a fixed consultancy fee to cover the scope of the work). 

Fortune 500 companies are leveraging online freelance platforms such as Upwork, Freelancer, Truelancer, and ZoopUp for Specialized talent.

Many companies are unable to get the optimum ROI from conventional staffing solutions for reasons such as –

• They are based in a remote location
• They do not have the physical infrastructure for a big team
• They require the service for a single project
• They cannot afford a full-time resource person at that level of experience

For such businesses, internet and freelance job portals have contributed manpower relief who are enabling them to strategically hire short-term resource personnel for targeted outcomes.

The Growth In The Freelance Job Marketplace

Internet facilitated the dynamic growth of the freelance job market. It made it easier for persons with professional skills to publish their profiles and for businesses seeking a service. 

The hiring models and user interface designs of the freelance job portals allowed expansive and efficient search. 

Neither freelancers nor clients seeking their services had to invest time in cold calling, print advertising, or limiting themselves to the local areas for collaborations.

Most freelance job sites charge a nominal commission for security and visibility. They serve a greater purpose of assuring different parties of legitimacy which helps them concentrate on the work and not spend time on administrative aspects of engaging consultants.

Preference Of The Workforce

In the face of the pandemic, more professionals became aware of the abundance of freelance opportunities and that these can be pursued on the side while they are engaged as full-time employees with a company. 

There are still grey areas about conflict of interest issues that have to be addressed. However, after struggling with the aftermath of the pandemic-enforced lockdown and the reluctance of employees to return to full-time on-site work, companies are now creating special conditions to avoid high attrition.

More professionals are choosing to break out of the monotony of 9 to 5 employment, many of whom have to relocate from their houses and stay away from their families for work. In some industries, the earning potential is just as good or better than working full-time.

The Altered Team Structures

The Fortune 500 company teams that were formerly determined by what work was performed are not determined by the team composition. 

It is no longer a choice between freelancers and permanent employees, but an admix of the two. 

The freelancers are scouted and hired by the team leaders based on the project needs and thus, they are able to control the overall project costs. 

Besides this, they can even curtail the inefficiencies of teams saddled by members with limited roles. The team members and the project benefits from a novel approach and insights from a third party. 

Furthermore, as professionals with niche expertise, freelancers are abreast with the latest trends and technologies. their experience adds value to their knowledge and the team benefits from them.

Coexisting Is Possible

The nature of work done by freelancers and their preference to be microentrepreneurs implies that full-time employees needn’t be threatened by the freelancer’s intervention. 

Furthermore, a freelancer does not have the same loyalty toward the company that a full-time employee has. 

This is because the continued success of the business affects the employee’s professional growth too. 

Whereas the freelancer, irrespective of the project outcome, still benefits as they are paid for successfully completing their work and they can show it on their portfolio when they apply for the next project.

The main attraction of the freelance model is the reduction in transaction costs. As internet penetration increases and the cost of technology goes down, this disruption of the job market will continue. 

Digitization and online job platforms will bring freelancers and clients together in a virtual market for open trade. Here, they will transcend barriers of time and space, and network with persons with aligned aspirations.