The ongoing pandemic and the economic decline it has caused in every industry has forced many companies to cut costs and adapt. One of the ways tech organisations across the globe are dealing with the current difficulties is by relying on freelance workers.
But why has it become so popular, and how does it benefit companies?
Contract work is becoming more popular
"It's no surprise that freelancing is on the rise, especially now that we have fully disentangled where we work from what we work on. The data shows that independent professionals are benefiting from income diversification, schedule flexibility and increased productivity." - Hayden Brown, President and CEO of Upwork.
The pandemic has restructured work life. At the beginning, no one was prepared for the unprecedented nature of the pandemic and most freelancers described their career perspectives pessimistically. But after the first incertitude, the market seems to have recovered and one area which weathered the storm better than any other is the freelance market.
The pandemic has triggered the freelancer movement and a significant number of people have gone on to work on a contract basis, working on their own terms and improving their income. According to an Upwork study:
- 96 percent of new freelancers would like to do more freelancing in the future
- 58 percent of workers who are new to remote work are thinking about being a freelancer in their future careers
Freelancing is not only a trend; it has become a workforce adjustment to the new generation Z. The makeup of the freelance workforce is getting younger and younger.
Research shows that the composition of the freelance workforce is getting younger, as 50% of Generation Z, 46% of Millennials, 37% of Generation X and 26% of Baby Boomers freelanced in the past year. One motivation to switch to freelancing is the strong demand for contract work in the tech industry, another motivation is the salary. According to the freelancermap study, 64% of freelancers mentioned having a higher salary than permanent employees.
What are the booming industries for freelancers in Germany?
The IT freelancer market has been one of the fastest-growing in the German economy for almost ten years. According to a study by freelancermap, SAP & IT consulting are still the better-paid industries for freelancers. The SAP sector has an average hourly rate of 111€, while Management and IT consulting are closely following with 110€/hour. Freelancers offering their services in the IT infrastructure charge on average 94€, developers have an 83€ hourly rate, and graphic designers or content and media producers earn 69€ per hour.
Why now is a great time for companies to hire freelancers
Because of digital transformation and the increase in remote working, it is a great time for companies to hire freelancers as they have the capacity to adjust to the circumstances of the changing organisation procedures.
Even complex roles can be successfully executed by a freelancer who brings diverse work experience into a company even though they don’t work in the physical office. For projects in the digital and tech industry such as web design, podcasts and audio advertising spots or IT services, hiring a freelancer is an affordable and smart way to get high-quality work done while keeping the core staff concentrated on the key objectives.
According to CNBC, the pandemic has boosted several industries:
- Jobs related to mathematical modelling- including mathematics, MATLAB, and algorithm projects have the highest increase in one quarter.
- Home entertainment and online shopping including applicable skills are trending.
- The demand for game designers and game developers increased dramatically.
- The amount of job announcements for E-commerce professionals keeps growing.
Interested in freelancing?
If you’re a skilled tech professional looking for more freedom and a flexible working style, you may want to consider freelancing. Here’s how to get started:
- Analyse your skills and personality and figure out if it’s the right working style for you.
- Just give it a try! You don’t need to take risks as you can try some individual jobs while keeping your permanent job and income source (if your contract allows you to).
- Build your online presence: if you’d like to commit to freelancing, focus on creating an online profile, portfolio and build up your personal brand to give people an insight into your past career and future objectives.
- Upgrade yourself: nearly every industry is changing faster than ever, so make sure you’re a strong competitor and expand your skills through courses, workshops and certifications.
- Know what you’ve got! Analyse your market value and adjust your costs based on your expanding abilities.
If you’re a freelancer looking for your next step or if your company wants to hire freelancers, all you need is to find the right recruiter who best matches your needs.
Get it touch with us, we are supporting a wide range of freelancers and companies to achieve their objectives and to find the right match.