Does freelancing go hand in hand with more flexibility and self-determination? Or do sales pressure and financial uncertainty prevail? The fact is that more and more people want to avoid permanent positions and work for several employers at the same time - including in HR.
In our society, self-employed, part-time, temporary and external employees are becoming increasingly important. According to a study by Deloitte, a quarter of the Swiss population work full-time or part-time as freelancers. Many freelancers appreciate the flexibility and self-determination: About half of those surveyed stated that they were able to combine their family life with their work more easily than before, despite working more hours per week. Others take advantage of the opportunity to work part-time as freelancers. So-called "downshifting", the reduction of working hours in favour of a more self-determined, fulfilling life, is the trend: three out of five people in employment, especially women, and around 14% of men work part-time. This trend is particularly evident in Generation Z, which, unlike its predecessor Generation Y, is increasingly seeking self-realisation and development in its leisure time and social contacts.
Growing market of freelancers in HR
The trend towards freelancing is also evident in HR. In addition to a large number of people looking to enter a new Industry, there are also many coaches and career consultants who specialise in HR and become self-employed. The subject areas range from HR administration to recruitment, interim management and payrolling, among others. This trend towards self-employment leads to more freedom and flexibility, which more than 50% of respondents see as an advantage according to the "Freelance Compass". However, it also harbours risks, for example in the event of illness or accident, and brings with it challenges in administration and sales. More than 65% stated that acquiring projects was difficult.
On the other hand, companies have to weigh up the advantages and disadvantages of outsourcing their HR tasks: on the one hand, they are dependent on expertise and can benefit from the flexibility of freelancers, for example in the event of internal absences, staff transitions or for certain project phases and work peaks. On the other hand, specific contracts must be drawn up and conditions negotiated with external employees. Unforeseen cancellations can also lead to delays or a forced restart of the recruitment process.
Mutual support in the HR community
Regardless of whether companies decide in favour of or against working with freelancers: The freelancer:in market has already formed and companies are unlikely to be able to avoid dealing with this development in the future. For this reason, HR Campus brings together an HR community in which HR specialists can join forces and support each other. On the other hand, the company acts as a partner that not only provides HR Outsourcing solutions, but also temporarily places HR experts on a full-time or part-time basis to provide support. This pool of HR Professionals consists of permanent employees, the self-employed, (early) retirees who would like to work and share their knowledge, as well as experts who are currently in an intermediate phase of their lives or would like to immerse themselves in a new subject area.
The number of freelancers is estimated to rise to 50% in the near future. With good external workforce management, companies can respond to this trend, meet the needs of employees and utilise the benefits of this new form of work themselves. All in the spirit of "Happy Employee, Happy Company.".
Glossary
Theexternal workforce is made up of people who fulfil a temporary role in a company: on the one hand, external employees who are employed by a temporary employment agency or by the company itself and are integrated into the Customer's organisation through authority to issue instructions. On the other hand, employees of a service provider or freelancers with a service contract who work remotely or on site at the Customer's premises and are personally relevant to the Customer. This means, for example, that they require badge access, a time recording tool and/or access to IT systems.
Temporary employees are people who are employed on a temporary basis by a company, for example a personnel service provider, or directly by the Customer. They have an employment contract, receive a salary and are also covered by social insurance with this company.
Freelancers are individuals who are registered as self-employed and therefore work under their own name, on their own account, independently and at their own risk.
Sources
- Deloitte: The workplace of the future: how digital technology and the sharing economy are changing the Swiss workplace
- Technology service provider Solcom: "Freelancers: work and life in harmony?"
- Persorama HR swiss: Part-time work is becoming increasingly popular
- David Stillman and Jonah Stillman: GenZ@Work: How the next generation is transforming the workplace
- Freelancermap: Freelancer Compass 2018