Here One of alternative route for the current problematic situations in companies.
Freelance market
platform
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In the face
of current economic challenges, organizations are facing various problematic
situations, from hiring their employees to production, marketing, and making
profits. There is mainly more attention being given to alternative routes.
Along with this trend, the
freelancing platform is popping up.
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According to
Allen Jay, freelancers with the necessary qualifications and skills can find
work and get payment on freelance platforms from anywhere in the world. In this
sense, online freelancing marketplaces are comparable to Airbnb and eBay, which
have fundamentally changed the way we travel and purchase, respectively.
Over the
past ten years, freelance employment has increased significantly, and it is
anticipated that this growth will continue. With this rise, it is anticipated
that by 2030, freelancers would make up as much as 80% of the global workforce.
Freelance work has evolved from being viewed as only supplemental income and
side jobs to a significant career opportunity.
The idea
that traditional 9-to-5 office employment is obviously incompatible in this
increasingly linked, international world is one cause for its overwhelming
development. The accompanying expansion and sophistication of freelance
platforms provides another justification for this global upswing. Because of
this, we've written this post to provide you a thorough overview of the top
freelance platforms available right now.
Platforms
for freelance employment are crucial for both employees as well as employers.
According to up work research, 80% of major firms intend to boost their usage
of independent contractors. In fact, the number of job projects completed
through these kinds of platforms has increased by 30%.
You're in
for a surprise if you assume that freelance platforms are solely used by tiny
firms. According to a survey by Accenture, up work is used by 100 of the
Fortune 500 firms. Similar to how freelance work is becoming more and more
common, more individuals are finding it to be profitable and convenient, which
increases the pool of talent available to employers.
(Jay, 2023).
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As per
Jaakko Taskinen stated Platforms that link independent contractors with
customers sometimes act as an intermediary for freelancing employment. These
platforms are referred to by a variety of titles in literature, including
crowdsourcing platforms, crowd work platforms, online outsourcing platforms,
and platforms for freelancing online.
The phrase
"freelance platform" is utilized in this study, and it is defined as
a platform that connects clients who are prepared to pay for freelancer
services with local or virtual work conducted by freelancers. Freelance
platforms may also be characterized as platforms that offer a matching service,
connecting the supply and demand of labor through a method for discovery (Taskinen,
2018.)
Why freelance platforms needs?
Any company, anywhere in the globe, may
utilize freelancing platforms to find temporary employees for tasks and
assignments that don't call for long-term employment. Freelancers can build a
profile, show their work portfolio, and communicate with employers via
freelance networks. Businesses may search a freelancer database using
experience, talents, and other relevant characteristics. As a result,
businesses may outsource labor- and time-intensive tasks and concentrate on
their core competencies (Jay, 2023).
Why companies looking for freelance job platform?
Companies
may use freelance work sites to locate freelancers for their projects for a
variety of reasons. Here are a few of the most widespread.
Access to a large pool of talent:
Freelance
employment platforms frequently include a sizable pool of knowledgeable
freelancers from all over the world, making it simpler for businesses to
identify and recruit talent for their projects.
Scalability and flexibility:
Businesses
may scale up or down their workforce depending on their requirements by hiring freelancers
on a project-by-project basis. This can be especially helpful for firms with
varying workloads or those that require specialized talents for certain tasks.
Cost-effectiveness:
Employing
freelancers may frequently be less expensive than recruiting full-time workers
because they are only paid for the projects they perform and do not have to
cover benefits or other employment-related expenses.
Faster turnaround:
Since
freelancers are frequently highly trained and concentrated on their specialized
field of expertise, they may frequently finish jobs more rapidly than full-time
workers.
Access to specialized talents:
Companies
may discover freelancers with highly specialized abilities, such as graphic
design, web development, or copywriting, on freelance work sites. These
professionals may be hard to locate internally.
Companies can handle freelance
platforms in several ways, depending on their needs and goals.
· Use an established freelancing platform:
To identify
and hire freelancers, many businesses turn to sites like Upwork, Freelancer, or
Fiverr. These platforms offer a marketplace where businesses may list their
tasks and freelancers can submit applications.
· Create their own freelancing platform:
Larger
businesses may decide to create their own freelance platform if they have the
resources and needs to do so. With this strategy, they may tailor the platform
to their own requirements and brand, but it costs more in terms of time and
resources.
· Use a hybrid strategy:
Some
businesses may combine their own platform with already-existing freelancing
platforms. They may, for instance, keep their own platform for some projects
while using a third-party platform for others, such as sourcing freelancers
with particular talents.
Whatever
strategy a business chooses, it's critical to have explicit regulations and
standards for using the freelance platform. In addition to creating a just
payment system and taking care of any potential legal difficulties, this also
entails defining expectations for communication, timelines, and deliverables.
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HRM's involvement is key in the
freelance job platform.
In a
company's participation in a freelance employment platform, HRM (Human Resource
Management) often plays a role in a number of ways, including:
Setting
policies and guidelines:
HRM may be
engaged in developing policies and guidelines for utilizing freelance
employment platforms, including specifying standards for choosing freelancers,
deciding on payment schedules, and laying out communication expectations.
Managing
freelancer relationships:
HRM may be
in charge of managing the relationships between the business and the
freelancers, which includes drafting contracts, establishing deadlines for
deliveries, and resolving any potential problems.
Invoicing
and payment management:
HRM may be
in charge of invoicing and payment management for the freelancers, making sure
they receive their payments on time and that all required paperwork is in
place.
Ensuring
legal compliance:
When a firm
works with freelancers, HRM should be involved in making sure that the company
is adhering to all pertinent legal and regulatory obligations, such as tax
laws, employment rules, and intellectual property rights.
Supporting
and educating workers who are working with freelancers:
HRM may
assist and educate employees who are working with freelancers by teaching them
about the best practices for doing so, managing project timeframes, and
successfully communicating.
All things
considered, HRM's involvement in a company's use of freelance job platforms can
help to ensure that the company is managing its relationships with freelancers
effectively and in accordance with pertinent laws and regulations, as well as
helping to foster good working relationships between the company and the
freelancers.
Challengers
to be considered.
According to Allen Jay, there are some drawbacks to consider while working with freelance platforms.
The level of
competitiveness is a significant flaw seen in the majority of freelance
marketplaces. In order to obtain that highly sought-after job that so many are
vying for, freelancers are driven to constantly compete against one another and
go above and beyond. In addition to the significant psychological damage that
this competitive job market climate can inflict on freelancers, the problem is
made worse when the competition beats you out for a position not because they are
better, but rather because they are offering a better rate.
Additionally,
there are the typical problems with payments, which may take weeks to be
reimbursed, and the exorbitant commission fees that platforms impose on your profits.
For many who rely completely on freelancing to pay their bills and support
their families, commission rates of up to 30% are actually pretty exorbitant.
While UpWork employs a prorated method per customer, starting with 20% for the
first $500, 10% from $500.01 to $10,000, and then going down to 5% after you
cross $10,000, Fiverr charges a flat fee of 20%.
When it
comes to communication between you and your customer, certain platforms, like
UpWork, also strictly enforce the exclusivity requirement. This can be
self-defeating, if your contract with them expires or you leave the platform,
you won't be able to advertise yourself to your clients with whom you have
established positive working connections.
Additionally,
not all customers are a pleasure to work with; some have poor language
abilities and are very difficult to communicate with; other companies have a
tendency to modify terms or project specifics even after a project has gone
live; and yet others are simply too busy or sluggish to answer.
Conclusion
All things
considered, HRM's involvement in a company's use of freelancing work platforms
can help to ensure that the company is managing its relationships with
freelancers effectively and in accordance with relevant laws and regulations,
as well.
Reference List
Jay, A. (2023) What Are Freelance Platforms? Analysis of Features, Benefits and
Pricing. [online] finances online. Available from https://financesonline.com/freelance-platforms-analysis-features-benefits-pricing/#:~:text=Freelance%20platforms%20are%20a%20marketplace%20for%20businesses%20and,hassle-free%20and%20convenient%20business%20experience%20to%20both%20parties.
[Accessed 15 April 2023].
Taskinen, J. (2018) High-skilled freelance platforms: The impact
of trust building
Mechanisms on attracting top freelance
software professionals.[online] Available
from https://core.ac.uk/download/pdf/162136426.pdf
[Accessed 16 April 2023].
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By freelancing an organisation can benifit in so many ways. Speacialy some organisation will have experienced employees leaving suddenly. In case like that the organisation can always look at freelancing and expert or an experienced or and retired veteran on the job for a short period where the organisation have the time to get the job done plus ,there is ample time to groom or recruit an employee for the position
ReplyDeleteYes Rushni. Yes, freelancing may be advantageous for businesses in many ways, particularly when experienced workers unexpectedly quit. Here are a few potential advantages:
DeleteFlexibility: Since freelancers may be engaged on a project-by-project basis, businesses can take advantage of their knowledge without committing to a lengthy employment agreement.
Savings: Because businesses only pay for the job that is really completed, using freelancers may be more economical than hiring full-time workers.
Access to specialized skills: Accessing freelancers is an excellent choice for short-term tasks that call for a particular skill set because they frequently have specialized knowledge and experience that may not be present internally. Thanks for your inputs.
Very interesting topic, Freelancing is a type of work arrangement where individuals offer their services to clients on a project-by-project basis, rather than being employed by a single company. This type of work is often done remotely and can be in a variety of fields, including writing, graphic design, programming, and many others. Well Done!!!!
ReplyDeleteI'm grateful. Yes, thanks to technological advancements and the growth of the gig economy, freelancing has grown more and more popular in recent years. It provides a flexible option for people to work on their own terms and for companies to acquire specialized skills and experience as needed for unique projects. It may also be a terrific method for people to support themselves financially, pursue their hobbies, and maintain control over their time and responsibilities.
DeleteAmazing implementation, Burke (2019) demonstrated that organizations use independent contractors to organize business activities in a way that is more project-based, improving organizational performance and lowering financial risks. Freelancers can complement employees by giving their workforce flexibility (Atkinson, 1984; Barlage et al., 2019; Burke, 2015; Burke & Cowling, 2019); they can also supplement existing organizational human capital by bringing rich expertise that enables organizations to gain a competitive advantage.
ReplyDeleteThanks a lot Tharanga. Burke's study does indeed show the advantages of hiring freelancers or independent contractors to supplement regular staff and enhance company performance. Freelancers can contribute specific knowledge that may not be present internally, enabling businesses to carry out tasks more quickly and effectively. Additionally, hiring freelancers can provide businesses the freedom to change their personnel as required without the expenses and dangers of traditional employment. Overall, hiring freelancers may be a useful strategy for businesses trying to maximize their human resources and achieve a competitive advantage in today's hectic business world.
DeleteThe article discusses the rise of freelance job platforms and their benefits for both employers and employees. With traditional office employment becoming less compatible with the increasingly linked global world, freelance work has evolved from being a side job to a significant career opportunity. Freelance platforms, acting as intermediaries for freelancing employment, connect independent contractors with customers for temporary assignments. These platforms offer scalability, flexibility, cost-effectiveness, faster turnaround, and access to specialized talents. Companies may handle freelance platforms by using an established freelancing platform, creating their own, or using a hybrid strategy. HRM's involvement is key in a company's participation in a freelance employment platform. Well done..!!
ReplyDelete