Wed. Oct 27th, 2021

Over the subsequent yr, nearly all of hiring managers within the tech house “plan to extend their use of freelancers,” in response to a brand new Upwork report.


Picture: iStock/jacoblund

Greater than a yr after the onset of COVID-19, the coronavirus pandemic continues to redefine the brand new regular of labor, however its imprint might reshape the way in which corporations fill positions for years to come back. On Wednesday, Upwork launched its Future Workforce Pulse Report, highlighting how the coronavirus pandemic has remodeled hiring, administration practices and the way in which corporations leverage freelance expertise throughout sectors.

“Distant work has turn into, what economists name, a common objective know-how,” stated Upwork Chief Economist Adam Ozimek, in a press launch. “It has a variety of makes use of that’s embraced throughout the economic system and creates a wide range of spillover results and we’re already seeing the indicators of those results. The embrace of a extra absolutely distant workforce has enabled companies to embrace new know-how, reimagine how they onboard and prepare, and even allowed hiring managers to embrace the usage of freelancers.”

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Distant work and freelance gigs increase

The Upwork report initiatives that greater than one-quarter of U.S. staff (27.7%) can be distant within the subsequent half-decade; up practically 5% from the corporate’s November 2020 survey. The coronavirus pandemic additionally “accelerated” corporations’ use of distant freelance expertise, with 53% of respondents saying “distant work has elevated their willingness to make use of freelancers,” in response to the discharge, and the overwhelming majority of hiring managers (71%) stated they had been planning to “maintain or enhance their use of freelancers” within the subsequent six months.

Over the subsequent yr, freelance tech expertise will proceed to increase, in response to Upwork, as practically two in three hiring managers within the tech house “plan to extend their use of freelancers” throughout this time interval. However, why are corporations more and more keen to faucet freelance expertise and is that this development associated to latest excessive turnover amid a good labor market?

One of many principal causes corporations are more and more keen to faucet freelance expertise, in response to Ozimek, is companies now having the “infrastructure to assist freelancers;” whereas pre-pandemic, he defined, the “considered onboarding or collaborating with an expert outdoors of the workplace or firm was troublesome for a lot of companies and hiring managers to understand.”

“However as companies have had to determine the best way to onboard and prepare workers within the context of distant work, many realized that they now can do the identical with freelancers,” he continued.

SEE: Juggling distant work with youngsters’ schooling is a mammoth process. This is how employers will help (free PDF) (TechRepublic)

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As soon as companies cleared the “hurdle” that’s coaching and onboarding freelance expertise, Ozimek stated, “many” noticed the “worth of working with distant freelancers,” resembling the power to shortly meet demand by scaling groups and tapping freelancers to help with out there work as a result of turnover amid a good labor market.

It is essential to notice that this surge in freelance expertise varies throughout industries. For the reason that begin of the coronavirus pandemic, 80% of hiring managers within the net, cellular, and software program improvement house stated they’ve elevated freelancer utilization, in response to Upwork, the biggest such enhance recorded. So, what’s driving elevated freelance utilization inside this software program improvement class?

“That is an space of labor the place there’s each plenty of challenge primarily based demand in addition to speedy scaling wants,” Ozimek stated. “Corporations who want e-commerce operations launched shortly, or a quick redevelopment of their cellular web site. This kind of work lends itself properly to freelancing.”

WFH is altering administration kinds

Curiously, the pandemic can also be shifting the way in which corporations and managers select to supervise and supervise staff. In comparison with a “regular yr,” about two-thirds of respondent companies (67%) stated they skilled “extra modifications to long-term administration practices” however non permanent changes made as a result of COVID-19, per Upwork.

Administration, Ozimek stated, is one space that noticed “an excessive amount of change,” with the swap to distant work, explaining that it’s “possible” as a result of “most of the outdated administration practices,” a la monitoring clocking out and in instances and “glancing over one’s shoulder,” aren’t attainable in a make money working from home framework. 

“As an alternative, companies have needed to shift their mindset to consider the precise work being executed from groups,” Ozimek stated. “Are individuals ending their work on time? Is it prime quality? Can I depend on them?”

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