Call them freelancers, contractors, or gig workers; there’s no denying that independent workers majorly impact the workplace. Even before the pandemic, non-employees made up more than ⅓ of the workforce. Now, even more people are making the shift to independent work.
What’s driving more people to work as independent contractors than ever? How can employers take part in the growing gig economy?
What about employers who rely on permanent employees for growth and productivity? How can they meet the needs of workers who want the flexibility and independence of freelance work while still keeping them on the payroll?
Why are so Many Workers Moving to Independent Work?
People are choosing independent work for a variety of reasons. Some are frustrated with workplaces that offer low wages, a lack of flexibility, poor benefits packages, and problematic management.
Others want to start their businesses and find freelance work to have the lowest barrier to entry. The gig economy also appeals to people who simply want to earn a part-time supplemental income.
Of course, there are darker reasons that people pursue independent work. They may not earn enough to survive at their regular jobs and use freelancing to supplement their income.
Individuals who struggle to cover full-time daycare costs or have elder caregiving responsibilities may find regular full-time employment impossible and opt for gig work.
Finally, work-life balance is an undeniable factor here. Employers should be aware that workers will often choose lower-paying gig work over inflexible employment terms and a toxic work environment.
Why? Over the past two years, the pandemic has led to shifting perspectives on the value of work and what makes a healthy and equitable employer/employee relationship.
Embracing the Independent Worker: What Employers Can Do
The shift towards independent work doesn’t have to be bad news for employers. Many startups can use freelancers to scale up their businesses without investing in full-time employees. There are other benefits as well:
- Access to a global talent pool
- Staffing flexibility
- Reduced training expenses
- Lower costs on office supplies and space
- Easier to end the working relationship
- Increased efficiency
- Lower benefits costs
Businesses that decide to work with independent contractors must understand that culture and compensation still matter. If you want to attract high-quality contractors, you must still market your company as a great place to work. More importantly, you should strive to build great business relationships with every freelancer you bring on board.
Here are six ways to ensure that your independent workers feel welcome in your workplace and are able to provide you with their best work:
Start with a Written Contract
Every relationship with an independent worker should begin with a written contract. This agreement will detail the nature of the business relationship, scope of work, budget, deadlines, and other details.
Create a Mutual Communication Plan
Consider how you and your freelancer will communicate with one another. Do you want a weekly check-in or to have the worker simply deliver the required items as agreed? What technologies will you use to communicate or share files?
You may wish to use collaborative tools like Basecamp or Slack to facilitate project management and communication.
Implement Onboarding Practices for Independents
What do independent workers need to know about your organization and its processes to be productive? Who are their points of contact? Create a streamlined onboarding process to help independents with all of the information they need to get going.
Empower Contractors to Meet Expectations
Feel free to set high expectations for independent workers. After all, many of them are banking on their expertise to land lucrative contracts. At the same time, it’s important to ensure they have all of the resources they need to meet those expectations.
Before an independent worker starts their contract, ensure that they have access to systems, data, and knowledge base materials. Be prepared to field questions as they get started, and be as responsive as possible.
Ensure the Workplace is Welcoming
Employees have become much more selective about potential employers and will quickly leave a toxic workplace. They’ll also freely share their poor employment experiences online.
If you are considering working with independent contractors to avoid this, think again. Freelancers are even faster to ditch a bad work environment, and they absolutely share information with other independent workers.
Build a good relationship with your independent workers by understanding what they value (e.g., flexibility and autonomy) and providing that to them. Instruct managers and employees to treat contractors with the same regard and respect they do one another.
Show You Value Their Contributions
Everyone wants to know that their work is valued. This desire is true for contractors as well. Give credit for work that is well-done, and show appreciation for their contributions.
Retaining Employees During the Independent Work Explosion
What can you do if your organization needs talented, permanent employees to reach its goals? You can take several actions to retain good employees that you might otherwise lose to freelancing or other independent work.
Start by analyzing your work culture. Are there things that could be driving away talented workers? Fix those things, and communicate what you are doing to create a better workplace culture with your employees.
Next, consider what is drawing people to the gig economy. Can you offer that kind of flexibility to your team members? Now is a great time to reconsider any plans to end remote work policies and look into benefits like daycare assistance.
