The future of freelancing: developments and trends

According to the BMWI, the number of freelancers has increased by 1.3 percent in one year, from 2019 to 2020, to a total of 1.45 million. The Corona crisis has not dampened this trend, which we have been seeing for several years. The
technical and scientific professions have grown the most, to now 287,000 freelancers – an increase of 2.5%.

Trend 1: Shortage of skilled workers & increase in freelancers

Companies, whether in the service sector, automotive industry, public administration, manufacturing industry or energy suppliers, are dependent on IT service providers due to the shortage of skilled workers. Studies show that companies will increasingly employ freelancers instead of permanent employees in the future. The specialized expertise of freelancers is one of their strongest arguments and ensures them a corresponding order situation.

Trend 2: Recruitment & project finding via freelancer platforms

The redistribution towards freelancers will in future take place even more strongly via platforms such as freelance.co.uk. The Oxford Internet Institute writes in its research report that in the last year alone, the number of projects advertised on online platforms has increased by 26%, especially in the area of IT development.

For companies, this type of recruitment offers great flexibility. They can find freelancers at the exact moment they need them. Nevertheless, there is no long-term cost factor that could become critical, for example, when the order situation deteriorates.

The search via freelancer platforms is simple and fast for companies. There is a large selection of freelancers, and only in rare cases do costs arise via intermediary personnel service providers. Overall, companies are becoming increasingly agile with their recruiting. This factor will continue to gain importance in times of digitalization.
The same points also apply to freelancers: access to projects is made easier via internet platforms. Finding projects is easier and, above all, faster, including long-term relationship and contact building.

Trend 3: Flexibility

Flexibility is the key. Both in terms of recruitment and in terms of working hours and organisation. In many industries and companies, this topic has become more and more in focus in recent years, keyword agility. After all, 9-to-5 working hours don’t suit everyone. On the contrary: dynamic framework conditions increase satisfaction – and thus also performance.

Freelancers are already one step ahead here. In many projects, they can freely schedule their work – as long as the work is finished by the deadline. Two-thirds of the respondents to our freelance.de survey say that this kind of flexibility is the main reason they work as freelancers.

Trend 4: Expertise will remain decisive in the future

Project providers are looking for experts. Through their work in various projects and with a wide variety of clients, freelancers often have more routine in familiarizing themselves with topics and working with new teams. It is therefore all the more important to project providers that this experience is provided in the form of references. Qualifications of freelancers will become even more important in the future.
Based on issues of equality, references provide more neutral and important conclusions about the work quality of freelancers and their qualifications.

Trend 5: Collaboration is key

Although freelancers are often equated with lone wolves, the trend is quite different: networking and teamwork are becoming increasingly important. As digitalization removes any boundaries of collaboration (also in the international and cultural space), so-called social collaboration in mixed teams is becoming more and more standard. In addition to this type of teamwork, freelancers also take on large project assignments for which they are responsible. In doing so, they put together their own teams of other freelancers and coordinate and organize the entire process. However, it is not only collaboration on a project that is becoming more important for freelancers. Some are also swapping the classic home office for a busier environment: shared offices and coworking spaces are a big trend.

Trend 6: Self-determination and changing values

This trend towards a new type of collaboration is certainly also linked to a new generation. Generation Y has arrived in the working world and is striving for new values: Turning a hobby into a profession, self-determination and self-realization, enjoyment of work and flat hierarchies are the focus – income, on the other hand, often becomes a secondary matter. All these requirements can be met as a freelancer. Another reason why the number of freelancers will continue to rise in the future.

Trend 7: Rising hourly rates

Due to the high demand for freelancers, hourly rates are forecast to continue rising. This is particularly true for the IT and development sector. In other industries, other distributions apply. Depending on the qualification, freelancers quote very different hourly rates. There is no set hourly rate for a particular expert.

For companies, it is therefore worthwhile to compare the freelancers on offer instead of hiring the first one. In addition, it is worthwhile to look closely: because only through a large selection is a professionally well-suited expert identified. Via internet platforms such as freelance.de, the comparison and selection can be done within a few minutes.

The future is now!

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