New report offers insights on how employers can attract freelancers
Independent, project-based work has emerged as a mainstream employment option for many employees, according to a new report, in a shift that can deliver benefits for adaptable employers.
Findings from iHire's latest report show a surge in freelancing experience and interest among employees.
It found that 41% of employees are currently working or have previously worked on a freelance or project basis, with 55.9% of freelancers expecting to do more project-based work this year.
Interest in the employment model is also high, as 61% of the respondents said they found freelance or project-based work appealing.
"Freelance and project-based work have taken off, and employers who don't embrace this shift will miss out on tapping into new talent pools of highly skilled professionals," said Steve Flook, president and CEO of iHire, in a statement.
"Organisations should consider how freelancers, such as independent contractors, fractional executives, consultants, locum tenens staff, and day labourers, fit into their business models, fill skills gaps, and help them compete."
How can employers attract freelancers?
Employers seeking to attract freelancers in their organisations should consider their motivations for doing so.
According to iHire's report, a strong driving force behind freelancing is lifestyle. It found that the top three reasons why employees are drawn to freelance work are:
- Flexibility (73.2%)
- Remote work (71.3%)
- A healthy work-life balance (60.5%)
These factors surpassed financial-related drivers, such as earning supplemental income (53.1%) and making more money or higher pay (39.9%).
But the report noted that pay remains a strong driver in freelancing, especially in the wake of rising cost of living.
According to the report, 63.5% of employees who find freelance work appealing cited the cost of living as an influence in their interest.
More than half (51.4%) of the respondents also noted that freelancing is "extremely important" or "very important" to their overall financial stability.
"Given ongoing talent shortages and the need to fill roles quickly to stay competitive, employers should waste no time considering bringing freelancers into their hiring strategies," the report read.
"As evidenced by our survey, a massive pool of skilled professionals ready and willing to take on projects, shifts, or other assignments exists – but employers will need to be intentional about how they tap into this talent base."
Employers are also advised to address the top concerns and frustrations of freelancers when engaging with clients. These are:
- Unclear expectations or project scope (36.1%)
- Lack of or poor communication (35.6%)
- Last-minute or urgent requests (32.5%)
- Negotiating pay rates (26.3%)
- Unrealistic deadlines or timelines (23.9%)
More than a third of freelancers (36.3%) also pointed out that client reputation is one of the factors that matters most to them when searching for freelance or project-based work.
This means that these employees want to ensure that their client is respectable, honest, and well-regarded, according to the report.
"As our research shows, attracting the right candidates for such roles requires promoting flexibility and autonomy, paying fairly, communicating clearly, and maintaining a positive reputation and employer brand," Flook said.
