The history of freelancing dates back to the early 19th century, but the gig economy as we know it today is more of a recent phenomenon.
Coined by journalist Tina Brown in 2009, the “gig economy” describes the trend of workers pursuing “a bunch of free-floating projects, consultancies and part-time bits and pieces within a digital marketplace.” The gig economy changes the nature of work in three major dimensions: the work itself, who gets it done, and where it gets done.
The gig economy is not a fad that will soon fade away. According to statistics, it is going to continue to grow and expand. A significant percentage of Millennials and GenZ workers are interested in the gig economy, either by becoming full-time freelancers or by way of side hustles. Companies are also starting to take advantage of the gig economy, with 30% of Fortune 500 companies leveraging the talents of freelancers.
Freelancers in Today’s Business Economy
Freelancers are critical to today’s business models for a variety of reasons. Hiring a full-time employee comes with the cost of paying a full-time paycheck, taxes, and benefits. Hiring a freelancer on a contract basis means only paying for the cost of the job without the associated costs of employment. This gives businesses additional free cash flow to spend on growth that can ultimately lead to more hiring or profits that can be spent to fuel further growth.
Freelancers are experts and specialists in their chosen fields. Economic theory suggests that specialists are better than generalists, as they create a competitive advantage that leads to a higher quality product or service with fewer resources.
A company may have an employee with fair spreadsheet skills who can finish a financial analysis project in two weeks. Based on the average financial analyst’s salary, that project would cost the company around $1,500-$3,000. The company can outsource that same project to a specialist freelancer who could complete the project in half the time at a lower cost, supporting the freelancer’s business and allowing the company to invest elsewhere or keep the savings as profits.
The Importance of Creating Strong Freelancer Relationships
As businesses continue to navigate the ever-changing landscape of the modern economy, it is becoming increasingly important for them to prioritize their relationships with freelancers. Freelancers offer unique skills and perspectives that can help businesses stay competitive and agile in today’s fast-paced business environment.
One of the key advantages of working with freelancers is the flexibility they provide. Unlike full-time employees, freelancers can be brought on for specific projects or tasks, which allows businesses to quickly adapt to changing priorities or market conditions. This flexibility also means that companies can tap into a wider pool of talent, giving them access to specialized skills and expertise, which can be challenging to find in-house.
Another benefit of working with freelancers is the cost savings that they can provide. Since freelancers are typically paid per project, businesses can avoid the overhead of hiring full-time employees, such as benefits, taxes, and office space. This can be particularly advantageous for small businesses or startups that may not have the resources to hire a large team of employees.
Under the new sustainable growth world order, finance teams need to become future-focused by analyzing data to input into company strategy.
Rising interest rates, the increased cost of doing business, and unpredictable patterns of demand for goods and services mean business as usual no longer applies.
This requires the finance function to pivot away from fulfilling compliance requirements and making the numbers add up to become forward-looking.
Warning signs to look out for include drops in cash balances that could breach bank covenants or require debt facilities and the implications of switching to secondary and more expensive suppliers to fulfill orders.
Business cases may also need to be made for developing new product lines and entering/exiting international markets. Making these changes isn’t easy, and there is the possibility of facing opposition from key stakeholders. However, leveraging insights from data can empower finance leaders to demonstrate why a shift in strategy may be required.
Strengthening Freelancer Relationships with Fast and Reliable Global Payments
Many companies rely on freelancers to complete various tasks in today’s global economy. These freelancers may be located in different parts of the world, so payments must be fast and efficient. Quick and reliable global payments are crucial for retaining freelancers.
When payments are slow or unreliable, it can cause frustration and dissatisfaction among freelancers. They may start looking for other clients who can pay them faster and more efficiently. This can lead to a loss of talent for the company, ultimately affecting its bottom line.
However, with quick and efficient automated global payments, companies can ensure freelancers are paid on time and hassle-free. This helps to build trust and good working relationships with freelancers, making them more likely to stick around and continue working with your company.
Fast and reliable payments can also attract new freelancers. Freelancers are part of a tight community, and word of mouth can be a powerful marketing tool. If freelancers are happy with the payment process, they are more likely to recommend the company to colleagues. This can lead to a larger pool of talented freelancers to choose from, giving your company a competitive edge.
Quick and efficient global payments are essential for companies to retain and attract new freelancers. It can help build trust, improve relationships, and ultimately contribute to the company’s success. As such, investing in a reliable payment system is a wise move for any business that relies on freelancers.
Freelancers are essential to today’s economy, and companies should prioritize their relationships with them. By working with freelancers, businesses can tap into specialized skills and expertise, remain flexible, and save money. Quick and efficient global payments are crucial for maintaining good relationships with freelancers, and companies should invest in a reliable payment system to ensure timely and hassle-free payments. The gig economy is here to stay, and it is up to businesses to adapt to this new way of working to remain competitive and thrive in the modern economy.
