Freelancing Is on the Rise
Freelancers. Independent workers. Individual small-business owners. Whichever we call ourselves, freelancers are the fastest-growing segment of small business and the fastest-growing segment of workers in the U.S. economy.
There are, depending on the source, about 50 million freelancers or independent workers in the U.S. today, about a third of total U.S. workers. Credible forecasts predict freelancers could become half or more of all U.S. workers in the next few years. And early data suggest that this trend could accelerate as a result of the pandemic and its knock-on impact on the economy.
What’s so attractive about freelancing? In a word, freedom. The freedom to work on projects of my own choosing...from wherever I want to live...on a flexible schedule that accommodates my personal and family needs...is increasingly attractive to more workers. Seventy-seven percent of freelancers want to be their own boss, and pursue their passion for projects of personal interest and value.
Still, there are challenges.
Freelancers claim they spend as much as half their time searching out and finding assignments and projects. For many, the work is project-to-project, with one project completed at a time before the next assignment is secured. Most freelancers work on a per-hour or per-project rate, without benefits. And, while many married freelancers can depend in whole or in part on their partner’s healthcare coverage and plan, the majority have to find healthcare from a variety of other sources—Obamacare plans, Medicaid, Medicare, etc.
So, the obvious question is, how can current freelancers and aspiring future freelancers turn the current crisis into an opportunity?
Seek out opportunities in fast-growing sectors like alternative energy, healthcare, personal services, digital e-commerce and technology, and so on.
Seek out opportunities at companies that have had to lay off or furlough a significant number of regular full-time employees. These companies still need to get some of their project work done, and a freelancer is a win-win solution. The company can pay you a higher per-hour rate and still get the project done for a lower total cost because they save on benefits, which can easily be 30%, 40%, or even 50% of a full-time employee’s total cost.
Build an informal network of fellow freelancers to share opportunities in industries, geographies, companies, and functions of common interest.
Every time you successfully complete a project for a client or customer, ask for an endorsement of the quality and value of your work, and a recommendation to another potential client or customer.
Continue to learn from a wide variety of available sources. Build your capability, experience, and skills in your specific discipline or function. Build your general business knowledge. Build your leadership and managerial effectiveness skills. A lot of this information and training is available online, much of it for free.
Freelancing is on the rise. Working remotely with readily available and easy-to-use technology is on the rise. The current circumstances should only lead to an increase in demand for all types of freelancers and independent workers.
Now is the time to develop more capabilities in business, leadership, and management skills, and to build out your network.
About the author
A.G. Lafley is the former CEO of Procter and Gamble, who worked for decades in and with large public companies. Over the last 15 years, he has turned more of his attention, energy, and time to small businesses and nonprofit organizations. He currently serves on the boards of Omeza, Snapchat, Tulco, Hamilton College, and as the founding CEO of the Sarasota Bay Park Conservancy. A.G. is the author of two best-selling books, The Game Changer about innovation and Playing to Win about strategy, as well as numerous articles on leadership, management, and business strategy for Harvard Business Review.