Two-thirds of businesses work with freelancers due to a desire to bring in competencies they did not have, according to the latest research. More than a quarter of respondents used freelancers' services as a result of the pandemic to increase online sales. Why else do entrepreneurs work with freelancers so en masse and so regularly? Which benefits are key for foreign companies and which for Polish ones?
There is a strong chance that the current year will become the year of freelancing. And not only globally, but also in Poland. The avalanche-like growth of interest in freelancers' services among companies, especially over the past dozen or so months, is a consequence of both the pandemic itself, the widespread implementation of modern technologies, and the acceptance of the remote work model. However, this change does not stem only from the attractiveness of freelancing from the freelancers' point of view. It is also, and perhaps above all, the result of numerous benefits for companies.
Abroad
Abroad
In the case of 67 percent of businesses operating abroad, the most common reason for using freelancers' services was the desire to bring in skills the businesses did not have, according to the latest research. 42 percent of surveyed entrepreneurs and managers used freelancers' services to speed up project delivery. Only one-third (35 percent) said that the reason for using freelancers' services was financial benefits.
Interestingly, 28 percent of respondents said they used freelancers' services in response to the pandemic to establish their business online and thereby increase sales.
In Poland
In Poland
In turn, the latest research by Useme.com on freelancing, as well as current conversations held with thousands of companies registered on the platform, shows that domestic entrepreneurs most often point to the following benefits of working with freelancers.
1. Financial
Financial
This is probably the most crucial point of cooperation between companies and freelancers in our country. It is enough to compare freelancers' remuneration with the real costs employers incur when hiring employees on permanent contracts. On top of that comes the issue of additional costs related to settling a permanent contract, as well as additional social benefits. Meanwhile, freelancers working with Polish entrepreneurs settle their accounts based on civil-law contracts, as well as invoices and VAT invoices.
What is worth remembering? There are solutions on the Polish market that allow individuals to issue VAT invoices without the need to set up their own business.
2. New development opportunities
New development opportunities
Working with a freelancer is also an opportunity for companies to supplement their team without the need to create new positions and bear employer costs during an uncertain pandemic period. To remain competitive on the market, freelancers react faster to new trends and changing market expectations. There is a strong chance that what a full-time employee does not yet know, a freelancer already has quite well mastered.
Another advantage is freelancers' working hours. Unlike full-time employees, whose working day is regulated by a contract provision, freelancers usually have somewhat looser schedules. Among freelancers, entrepreneurs will find supporters of various work "shifts." What does this mean in practice? – A freelancer can carry out tasks for which full-time employees lack time or which the company prefers to leave for outside its working hours.
Is the year of freelancing for companies a trend that will last?
Is the year of freelancing for companies a trend that will last?
Additional help with running an online store after 5 p.m., afternoon social media moderation, programming work that is better carried out when there is less traffic on the site. A company can commission all of this to a freelancer. – says Przemysław Głośny, CEO of Useme.com, the largest platform in Central and Eastern Europe for settling remote work.
3. Flexibility of cooperation, but also of work and costs
Flexibility of cooperation, but also of work and costs
Uncertain times require quick reactions and adaptation to market changes. Employers are afraid of increasing employment precisely because, before an employee is onboarded into their duties, it may turn out that a person with different competencies is needed or that there will be a need to reduce the workforce. By maintaining rigid employment, companies lose some of the flexibility that helps them react faster to changes. Working with a freelancer does not pose such a problem, as it is based on completing specific tasks and flexibility.
4. Time savings
Recruiting for a full-time position and then onboarding can be time-consuming processes. When working with freelancers, the task is not only faster to complete, but also has lower financial consequences in the event of an unsuccessful process. Why? Companies do not have to arrange or conduct long job interviews, onboard employees, teach them, or train them. It is enough to specify what work needs to be commissioned and choose the best offer available on online platforms that bring freelancers together.
It also happens that employers worry about whether a freelancer will deliver work on time. Remote work does not involve controlling the employee and their progress. However, this does not have to be a concern for entrepreneurs. It is enough for the company to:
- working with a freelancer based on an hourly rate, determine which tool will be used to count working time,
- if it commissions the execution of an entire project, then the freelancer will be able to use project management tools. With them, "milestones" are established, i.e. stages that allow entrepreneurs to track the progress of work.
- In both cases, companies can also use the Useme protected transaction system, in which the freelancer receives payment only for work performed in accordance with the order and delivered on time.
The report "Freelancers in Poland" has been prepared annually since 2014 by the Useme.com platform. The data is developed on the basis of studies carried out on representative samples, i.e. 1,000+ freelancers, using the CAWI research method. The research concerning foreign companies was conducted by PeoplePerHour on a sample of 500 business owners and 1,000 freelancers.
Summary
The research shows that cooperation with freelancers has various motivations for companies: abroad, the dominant ones are the desire to supplement competencies (67 percent) and speed up projects (42 percent), while in Poland – financial benefits and flexibility. The Useme.com platform draws attention to solutions enabling invoicing without setting up a business.
Importantly, 28 percent of foreign companies began using freelancers because of the pandemic, in order to increase online sales. The report "Freelancers in Poland" has been prepared annually since 2014 on a sample of 1,000+ freelancers, and the data on foreign companies comes from the PeoplePerHour study.