Freelancing is on the rise to the extent that the employee of the future may not be an employee at all, but an independent contractor. In this article, we track the development of this trend, corresponding regulatory backlash and innovative ways for companies, freelancers, and third party industry to create significant advantage now. Wikipedia cites the Bureau of Labor Statistics as noting that, “Approximately 10.3 million workers in the US (7.4% of the US workforce) are independent contractors. In the past three years, companies have increased their outsourcing by 22% on the internet.” Freelancing is not a new trend, but one that has taken a turn towards becoming the norm and outsourcing has accelerated the evolution. The boomer generation is retiring now and over the next two decades. They take with them the last of your workforce that believe in staying anywhere for very long. More money, tax incentives, better retirement investing options and so much more are increasingly enticing. Granted, the freelancer has no company sponsored benefits, no paid vacation and they work for the worst possible boss in the world - themselves. The benefits for any company in using independent contractors are so attractive that more companies prefer such an arrangement. Not having to pay the benefits and taxes required for employees is reason enough to farm out every position that you can. It is precisely that reason that prompted government regulatory backlash across the world. One horrifying example is a state law in Massachusetts where, “companies can hire independent contractors only to perform work that is ‘outside the usual course of business of the employer’.” Recent amendments and advisories have broadened it to all industries. What remains to be seen is how far other states and countries will go to ensure their share of your business profits. To create advantage from this trend, consider the following. Future employees may not be employees at all. Use social media and e-lance trials to find the right freelancer. Once onboard, build loyalty with your freelancers AND your employees. Along the same lines, hiring freelancers does not justify incompetent management. Lastly, and not to deter you, but freelance regulation will get worse before it gets better. Stay on top of regulatory changes and anticipate their next move as you go along. The advantage will be yours.
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Keywords: freelance, independent contractor, regulation, government, talent, workforce, business, trend, watch, list, POV, 2010, advantage, strategic, competitive
