The Rise of the Freelance Economy

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By Alex Nikotina

We have seen rapid changes to the work environment in the 21st century. It is not uncommon for both parents to work full-time, for an individual to have several jobs simultaneously or for employees to be looking for flexible work options. For a growing number of people, freelance or part-time employment has become a solution.

The rise of the freelance economy has brought several important changes into the workforce. As a director of human resources, as well as an instructor of the Diploma in Human Resources Management at Ashton College, Amr Shokry, has noted several key changes that the present job market faces as freelance workers become more prevalent.

Changes in Hiring
Shokry acknowledges that organizations can now choose between hiring full-time, part-time and freelance employees—options which were less available a couple of decades ago—and that there are several reasons for companies to choose part-timers over full-time staff.

For one, it can be more economical to hire temporary, freelance or part-time workers. There is often no need for the employer to provide health or unemployment insurance, retirement or holiday pay. Furthermore, part-timers and freelancers generally work less hours or are on a fixed salary, which can mean less expenses for the organization.

Another benefit is the convenience of a freelance worker. A manager can break a project down into smaller tasks and hire specific individuals for those tasks within a set timeframe. This way, the company does not have to invest as much time, energy and money into the employee in order to get desired results.

Shokry prefers to call it networking instead of outsourcing: “I have different freelancers and contract employees I work with—employment lawyers, healthcare brokers, training providers, etc., and I consider all of them a part of my team”.

Of course, there are disadvantages of hiring part-time or freelance. For instance, the individual worker may be less committed to the organization, which could result in a higher turnover rate and more work for the HR team. Part-time or freelance employees may also be less likely to go above and beyond beyond the set tasks as they usually work to a pre-determined project brief and contract.

Despite these disadvantages, the greatest hiring benefit in the rise of the freelance economy is the option of choice.

Job Security
Research has shown that there are more people attracted to the idea of freelance or part-time work now compared to the early 2000s. The idea is appealing for individuals who want to be more independent and have more flexibility. Some people choose freelancing to ensure a healthy work-life balance, some view it as a temporary option, and others simply want to work for themselves to have more control over their time, life and work habits.

However, while freelance and part-time work certainly has its benefits, it can also introduce uncertainty to an employee’s life. Those same factors that save money for businesses (no need for benefits, insurance, vacation pay and retirement plan for part-time employees) are the heralds of employment insecurity for freelancers and part-timers. The ‘safety net’ enjoyed by full-time salaried employees is not available.

On top of that, freelancers face uncertainty when it comes to being paid. The payment from the employer can be delayed or not received at all. Despite the popularity of freelancing and part-time employment, there is still not enough support for the individuals under the current political and economic system. As a result, these types of employees are hoping to see more support systems available to them in the future, and more changes in the way that the government and relevant organizations and are treating freelance work.

Work Environment
Part-time and freelance employment has also influenced people’s view of what work environment should look like. With a decrease in the number of regular “9-to-5” full-time opportunities and an increased emphasis on work-life balance and health, many people want to have more flexibility in their schedule.

For instance, it is not uncommon now for employees to take a day or half-a-day off due to personal circumstances and make it up on another day by staying at work longer. Another example is spending shorter days in the office and taking work home—an option that works well for parents. Doing this allows busy professionals to attend to their needs outside of work while ensuring their productivity.

Another change in the work environment is related to the way work is perceived. With more flexibility available, people are now less likely to want to spend eight hours at a time in a cubicle, facing the wall or their computer. More and more employees value open spaces, opportunities to interact, access to coffee, tea and treats, and even opportunities to exercise in breaks. Interestingly, many organizations are also encouraging such changes in the office environment, since they can increase workers’ health, productivity and creativity.

Alex Nikotina is an online marketing assistant at Ashton College in Vancouver, BC. Originally from Russia, Alex loves to travel and experience new countries, having previously spent time in Japan before moving to Canada.

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