The number of freelancers is steadily increasing across the UK and I have no doubt that freelancing is going to continue growing at a strong rate. If you work as a freelancer or are considering going freelance then you need to know where freelancing is heading.
Unless you live on another planet it is impossible to not recognise that the workforce is not what it once was, and there has been a definitive demise in the ‘jobs for life’ ethos amongst professional employees. Many of us may have already experienced first-hand the consequences of organisations replacing employees with technology, or alternatively outsourcing to some country where wage costs are far less.
There is no doubt in my mind that organisational downsizing has helped shape an entirely new organisational culture where employees are increasingly looking for an opportunity to be in control of their work commitments and professional development path.
So where is the freelancing community right now?
It is not just the behaviour of organisations that is impacting the trend of the workforce. Perhaps through necessity or a change in cultural norms (perhaps even a combination of both), our society is moving away from seeing working as an employee as the only or best job option available. There are many people who see benefit in working for themselves and being their own boss, from flexible working hours, more control over the work that is performed or ensuring they receive maximum benefit from the employment of their skills and knowledge.
There are many freelancers in the UK economy at present supporting both large business and SMEs. A little known fact is that 99% of all businesses are SMEs and they constitute approximately 65% of UK’s GDP.
With what is going on in the UK economy right now I would see two trends:
- SME owners will need the skill and knowledge of freelancers now more than ever.
- The UK will depend on the SME industry to pull the country out of the economic difficulties it is currently experiencing. This will mean a high demand for freelancers.
Freelancing is growing in popularity and many businesses are turning towards freelancers in the UK to fulfil resourcing needs not available with their permanent workforce. Surveys have identified that 40% of freelancers are hired for managerial roles and 20% at director level, meaning that organisations understand that they need to address their talent requirements from outside their current workforce.
In the UK it is estimated that freelancers constitute around 5% of the workforce and that number has grown 14% over the past 10 years.
Freelancing during these challenging economic times
There is no doubt that these are challenging economic times and freelancers, along with everyone else, have endured a tough 12 months. However with the UK demanding a lean and flexible workforce there is no doubt the demand for high quality freelancers will rise in the short to medium term. Freelancers are providing organisations with a flexible resource structure that fulfils needs when required without being a fixed cost burden. For this reason alone the popularity of freelancing, for both the individual and organisation, will continue to increase.
By Daryl Close, business success consultant and coach
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