Report highlights the number of freelance professionals is growing
A leading Australian management academic says businesses need to find the “right mix” when relying on casual work contracts, warning it can be damaging to existing teams.
"Using freelance professionals when you need them is great – but sometimes it can be burden," Associate Professor David Cheng from the Australian National University Research School of Management told HRD.
"In times of economic uncertainty, it allows companies to stay nimble and react to changes, but sometimes, if you need skills at a consistent level, it might be better to bring it in-house. It’s a change in paying for someone’s skills rather than their time,” Cheng said.
His comments followed the release of a report from Outsized showing 2024 was a “standout year” for independent professionals across the world – as freelance registrations rose on its platform.
In Australia and New Zealand, freelance registrations surged by 1228% on the platform with more businesses turning to independent professionals to bridge their skill gaps and lead critical projects.
Changing the way businesses hire employees will influence morale in the company, Cheng warned, telling HRD it “comes with the territory”.
“Say I hire you for a specific service – you’re not necessarily loyal to me anymore. This is a shift away from the psychological contract of old that you were looked after as well as employed. Now, I pay you for a service and as long as the work’s done, that’s all good.”
“Hiring a freelance professional is less about workplace culture and if they’re a good fit and more about their ability to do a certain thing. It can be damaging to those working full-time, too,” Cheng added, “because jealousies could arise, inequities could become clear when they’re tasked to work on a new and exciting project – because that’s what they’ve been employed to do.”
Cheng says HR’s role could change if the shift to freelance rather than permanent recruitment continues.
“Onboarding could move to the back of the list with a greater focus on the procurement of talent, rather than nurturing it. Less focus could be put on whether they're a great fit for the organisation and more focus on can they do what they're being asked."
Talent acquisition has become less of an issue in a time of economic uncertainty.
The Global Leadership Monitor released by Russell Reynolds Associates now shows the precariousness of the economy is one of the top external threats to organisations, being cited by 63% of global leaders.
"The level of concern has intensified in the past six months. With trade tensions building and policy changes on the horizon when we surveyed leaders in March 2025, it's unsurprising that more leaders have considered economic uncertainty a top five concern," the report read.
Cheng noted that this will massively influence how companies – and HR managers – change their approaches to bringing in new staff. He said, “It’s reasons like this that being nimble is important. With freelancers, you can let them go a lot easier than full-time work.”
“It’s about balancing what works, though. Not every job is a freelancer’s job,” he said.
