The global freelance economy will be worth over USD 3 trillion in 2020 and will grow by 20%. What drives the dynamic development of this industry? What attracts workers to it and what earnings can they expect? How is the pandemic changing this sector? The latest picture of the domestic and global freelancing market is presented in a report by Useme.com.

Driven by demographic changes, technological progress, and a new labour market paradigm, the freelance economy is flourishing. And freelancing is becoming the preferred way of earning and living for millions of people around the world. The "geek economy" is developing at breakneck speed and is no longer just a side gig, but also a permanent and increasingly well-paid way of earning. The Covid-19 pandemic has only accelerated this process. Paradoxically, the crisis, corporate downsizing, and hiring freezes are good news for freelancers. It has long been known that outsourcing services or work is a way to optimise costs in companies. And in turbulent times, freelancing comes to the rescue.

The American and Global Market

The American and Global Market

In the USA, the number of freelancers has already exceeded 57 million people, and they earned nearly a trillion dollars, while the value of the entire global market in 2019 amounted to USD 2.8 trillion. According to market analysts, this year these figures will change by at least 1/5 upwards. Global research conducted in 2020 on a sample of over 7,000 freelancers from more than 150 countries shows that younger generations, such as Gen Z and millennials, make up the clear majority of today's freelancers worldwide. In Southeast Asia, 82% of workers are under 35, while in North America only 47%. On the other hand, freelancers over 55 earn more than twice as much as their younger peers. The global average hourly rate charged by freelancers is currently USD 21 and is USD 2 higher compared to last year. The average earnings of American freelancers are 33% higher than the global average, at USD 28. The highest-paid freelancers are experts in programming, IT, and lawyers. The highest rate offered through platforms dedicated to freelancers was USD 255 per hour of work for a lawyer specialising in legal restructuring of business entities.

Freelancers in Poland

The report "Freelancing in Poland – 2020 edition", prepared as every year by the Useme.com platform, shows that in our country too, the freelance market is growing dynamically, both in terms of value and the number of freelancers. Admittedly, we are still far from the level of development of this market in the USA or the UK, but the changes taking place on the Vistula are quickly bringing us closer to the most developed countries in the world.

– The value of the entire freelancing market in Poland will increase by 28% in 2020 and grow to PLN 12.16 billion [approx. GBP 2.4 billion]. – says Przemysław Głośny, CEO of Useme.com. – Currently, major changes are taking place in this market, shaped both by global factors, e.g. the shift to remote work, and local ones, e.g. the professionalisation of the sector. This year, one more factor has emerged that no one took into account last year – the pandemic. Covid-19 contributed to the popularisation of remote work, although it also caused complications in this market. – adds Głośny of Useme.com.

According to this year's Useme research, for more than half (51.88%) of respondents, the coronavirus had neither a negative nor a positive impact on the valuation of their work. However, many respondents believe that the pandemic, and especially the economic lockdown, has left its mark on the freelance market in Poland. As many as 64.29% of respondents declare that the situation in the industry has worsened or significantly worsened. For 57.89% of freelancers, the number of orders or work in general has decreased. For only 28.2% of respondents, the situation remained unchanged.

Many changes have occurred in the domestic market compared to previous years. Among them, one can mention the change in the status of freelancers. A freelancer in Poland is no longer associated with a learning amateur who, due to a lack of offline work, looks for orders online. A freelancer is increasingly a high-class professional who chooses this form of employment themselves, due to the increasingly important work-life balance for young people. Being a freelancer in 2020 not only sounds proud, but also aspirational.

A Freelancer – Who Is That?

A Freelancer – Who Is That?

According to Useme.com research, the average freelancer is a 32-year-old woman who lives in one of the large cities in Poland and works in copywriting or social media. She has been working as a freelancer for several years, most often for small companies employing up to 10 people. She devotes up to 4 hours a day to projects and completes 1-5 orders per month. That's what general statistics tell us. Let's delve into the data from this year's research to get to know and understand Polish freelancers and the changes taking place in this market.

This year's survey included more women (51.8%) than men (48.2%) for the first time in history. 35.1% of them live in cities with more than 500,000 inhabitants, 21.8% in cities of 100,000-500,000, and 17.4% in cities of 20,000 to 100,000 inhabitants. 14.1% reside permanently in rural areas, and 2.9% of respondents live abroad. For 49.5% of respondents, freelancing is the only way to earn money, while 50.5% earn extra, i.e., combine permanent employment with being a freelancer. Practically, these figures looked the same in 2019, when 49.3% of respondents treated freelancing as their only source of income.

Three-quarters of freelancers carry out projects as natural persons without legal personality. The remaining quarter of respondents have their own company. Most often it is a sole proprietorship (20.4%). Only 1.3% offer their services in the form of a limited liability company.

Polish freelancers providing services for the electronic business most often offer: copywriting and social media (27.9%), graphic design (17.8%), creating websites and online stores (12.3%), photography, video and animation (9%), programming and IT (8.1%), translations (8.1%).

Rates

Freelancer earnings in Poland have been growing for years. We are dealing with the same phenomenon this year. In 2020, average hourly rates increased by 12% compared to 2019, to PLN 16.8 net [approx. GBP 3.40] per hour. Admittedly, two things should be kept in mind. The first is the fact that in Poland, project-based remuneration dominates, i.e., lump-sum settlements for an order. However, increasingly, especially among programmers and graphic designers, hourly rates are used for settlement. The second caveat is that the average, just as in the USA or globally, is not a precise reflection of rates for individual freelancing industries. Much higher average rates, e.g. PLN 150 net [approx. GBP 30] per hour, will apply among programmers, or PLN 200 [approx. GBP 40] among lawyers, than among freelancers providing administrative services, where average hourly earnings will oscillate around PLN 13 net [approx. GBP 2.60].

It is also worth emphasising that, as in the global market, simple services are becoming cheaper in Poland too, due to the growing supply of services or the automation of certain processes, such as writing uncomplicated texts. The same is happening with less demanding translations and graphics. Specialists in these fields earn more primarily thanks to the growing number of orders, rather than an increase in the hourly rate or the value of individual orders.

- The area of the freelance business where rates are still rising dynamically remains broadly understood IT and programming services. Although here too, due to growing competition from automated solutions, e.g. website generators, remuneration for simple work has significantly decreased. A few years ago, the cost of creating such a website was about PLN 1,000-1,500 [approx. GBP 200-300], now it is about PLN 400-500 [approx. GBP 80-100]. – says Przemysław Głośny, CEO of Useme.com. - Nevertheless, the earnings of website creators are growing, because thanks to automation they are able to create more of them, and demand is growing. Not only because of the growing number of companies migrating to the online world, once identified only with offline, e.g. shoe shops or electronics repair. Today, no one is simply able to operate in business without at least a simple business card website. What's more, while once it was enough to refresh a website once every 5-8 years, currently it needs to be done much more often, every 2-3 years, to look attractive. – adds Głośny of Useme.com.

In the area of copywriting and translation, freelancers who use so-called less obvious languages, e.g. Dutch, or who have the ability to write fluently in a foreign language in a narrow field, earn more. Currently, knowledge of English or German alone will no longer ensure high earnings. Those freelancers who want to earn well must have the ability to write in a foreign language, as well as, for example, in the field of economics or a specific sector, e.g. sustainable packaging or mechanical turbines.

How and Thanks to What Do They Acquire Clients?

How and Thanks to What Do They Acquire Clients?

A freelancer in Poland can count on steadily growing earnings, as long as they are diligent, reliable, and are genuinely an expert in their field. Two-thirds of respondents declare that they have regular clients. 58.7% of freelancers acquire new clients through recommendations. More than half (50.9%) of respondents use classified ad portals such as Useme.com. One-third use social media to acquire new orders.

How Many Projects Do They Complete?

The largest percentage of freelancers complete 1-5 orders per month (52.3%). Compared to last year, this percentage decreased from 58.2%. The number of people who complete more orders, i.e., 6-10 or more than 10 in 30 days, remains practically unchanged. The amount of work freelancers have is strongly influenced by both their specialisation and the length of their experience as freelancers, as well as whether they have a permanent job in addition to their orders.

How Much Do They Rest?

How Much Do They Rest?

Freelancing is primarily about the desire to maintain a proper relationship between time devoted to work and personal life, the so-called work-life balance. This year's research shows that more than half of freelancers manage to achieve this. One in three respondents (28.3%) goes away for two weeks or longer, and one in four (25.1%) for one to two weeks.

The report "Freelancers in Poland – 2020 edition" was prepared by the Useme.com platform in October 2020. Data compiled on the basis of a study carried out by Useme on a representative sample of 1,076 freelancers, using the CAWI research method, in May-June 2020. Data from reports by Payoneer, Upwork, and MarketWatch describe the American and global market. The freelancer survey and the report "Freelancing in Poland" have been prepared annually since 2014.

Summary

In 2020, the value of the global freelancing market will reach over USD 3 trillion, and in Poland it will grow by 28%, to PLN 12.16 billion [approx. GBP 2.4 billion]. The average Polish freelancer is a 32-year-old woman from a large city, specialising in copywriting and social media. The average hourly rate in the country is PLN 16.8 net [approx. GBP 3.40], but IT specialists or lawyers can expect significantly higher remuneration.

The Covid-19 pandemic paradoxically accelerated the development of the sector – although 64% of respondents felt the situation had worsened, remote work became widespread. The Useme.com study was conducted on a sample of 1,076 freelancers, and global data comes from reports by Payoneer and Upwork, among others, where the highest recorded hourly rate was USD 255 for a lawyer specialising in restructuring.