A recent study by the Freelancers Union, shows that 53 million Americans are freelancers, which is 34 percent of the total workforce. This number is expected to skyrocket to 50 percent by 2020.
Workers are demanding more than just not wanting to work for 1 company their entire life. The workforce is shifting to the ultimate flexibility of working exactly how much each person wants to work. For some people this means working part time so that they can finally achieve that perfect work – life balance. For others it allows for them to work more and earn more, instead of the old way of maybe making a tiny bit more in their end of year bonus. Workers also want the ability to work for a variety of clients for their own personal growth and the ability to easily say no to projects that are not exciting to them. All of this leads to a changing workforce that sucessful companies will need to embrace to be effective.
Here are 5 benefits to companies that hire freelancers
1. Cost Savings
Companies save on benefits and taxes which usually amounts to 10% savings. Consulting companies like Finance Pals are able to do work cheaper with high quality employees because their part time resources are willing to work for a reduced rate for the flexibility of work being spread to other resources when they have conflicts.
2. Hire top talent
Hiring and keeping top talent is a major concern for all companies. Limiting yourself to only hiring full time employees may cause you to go weeks or months with key positions vacant. My suggestion is the next time you are having difficulty filling a position consider hiring a consulting company to help out in the interim. Consulting companies, like Finance Pals are succesful by hiring top talent and doing exceptional work.
3. Culture / Turnover
The average tenure in 2016 for employees less than 34 years old is 2.8 years according to Bureau of Labor Statistics. Consulting companies that use feelance labor are super low risk for leaving you for a different job as workers are happy with their flexible work arangments and work can be transitioned to different staff if required. We are also great at building job aids and processes once you scale and can hire cheaper resources.
Companies like Finance Pals can usually start with 1 days notice or ramp down if costs need to be trimmed without any severance packages. Having the exact right number of employees is impossible as work increases or decreases based on seasonality and other factors, so it makes sense to flex freelance labor up or down based on demand. For companies that are too small to be able to afford hiring a full time CFO, Controler, or bookkeeper, then Finance Pals is perfect fit to only do a few hours of work a month. It is a huge mistake to try to grow a company without any expert financial forecasting, planning and strategy direction, so it makes sense to hire resources that only want to work as many hours as you need them.
Freelance labor companies have the ability to scale up resources if an extra push is needed to make a major deadline or if you company grows bigger. We specialize in being able to add more work and grow with you more than hiring a single full time employee can, since eventually they will become overworked. We can setup processes and help train and supervise lower level resources once your company is at a large enough scale, or we can give billing discounts as scale grows beyond 1 full time employee.
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