In the evolving landscape of modern business, the sharp boundaries between traditional permanent...
Top Performers are Leaving in Droves
Gone are the days of loyal employees spending decades at the same company. Long tenures used to be the norm, now the average worker stays for no more than four years at their current job (and even less for genZ and millennials).
High performers in particular are leaving the workforce in droves causing serious skills gaps. This group of individuals are 400% more productive than the average employee, with 47% of high performers leaving their jobs in 2022.
Where are they going?
The answer is - many of them are going solo and becoming freelancers. Adjusting to this flux can be overwhelming for organisations that have entrenched employee-centric approaches to business. The good news is that tapping into the freelance market has never been easier - and the ROI has never been better.
Yes, incorporating freelance talent into your workforce comes with a number of but enticing financial benefits but today we want to talk about the less-visible, and often overlooked side of the ROI equation.
In this article, we go over the top four invisible benefits of freelance talent and why you should move past a dollars and cents approach to calculating their ROI in your organisation.
Hidden Benefit 1: Innovation and Fresh Perspectives
We can all use fresh ideas and perspectives in our organisations. Companies are pumping innumerable resources into internal innovation programs with top 2500 spending over 1.3T Euros pursuing innovation and market leadership.
Diversity of Experience
Have you considered that your most innovative ideas can come from an outside perspective?
One of the most significant hidden benefits of hiring freelancers is the wealth of diverse experiences they bring from various industries. Unlike full-time employees, who may have spent years in a single sector, freelancers often work across multiple industries, gaining exposure to a wide range of challenges and solutions.
This diversity translates into creativity and innovative thinking, enabling freelancers to approach problems from unique angles that internal teams might overlook.
Hidden Benefit 2: Intrinsic Motivation & Entrepreneurial Mindset
It takes a certain kind of person to go freelance. Not everyone is cut out for it. As a freelancer you are responsible for all the needs of the business from marketing to operations to the actual delivery of the service you are in business to provide.
This is great news for employers as the willingness to take all of this on is a signal of high performance.
Freelancers are highly entrepreneurial and have a built- in execution bias. They are also highly motivated by the need to maintain their reputation and secure future work. This intrinsic motivation usually leads to a high level of commitment and quality in their work. As Johann van Niekerk, CEO at Outsized points out: “freelancers are like sportsmen—you’re only as good as your last gig."
This mindset pushes freelancers to consistently deliver their best work, resulting in higher-quality outcomes for the companies that hire them.
Hidden Benefit 3: Flexibility and Agility
Scalability
The ability to scale your workforce quickly and efficiently is invaluable. Freelancers provide businesses with the flexibility to scale up or down based on project needs, without the long-term commitments that come with full-time employees. This scalability is particularly crucial in industries with fluctuating demand or those that are undergoing rapid change.
For instance, during peak periods or when launching a new product, companies can quickly bring in specialized freelancers to meet increased workload demands. Once the project is completed, the company can easily reduce its workforce, minimizing costs without sacrificing performance.
Rapid Deployment
Freelancers also empower companies to respond quickly to changing market conditions. Whether it’s a sudden shift in consumer behavior or a new competitive threat, businesses can deploy freelancers rapidly to address these challenges.
This agility not only improves operational efficiency but also enhances employee engagement and overall performance. Companies that can pivot quickly are better positioned to capitalize on new opportunities and avoid potential pitfalls.
Freelancers also allow businesses to pilot new capabilities with minimal risk. For example, a company considering entering a new market or adopting a new technology can use freelancers to test the waters without committing to long-term hires. It’s all about experimenting, learning, and adjusting strategies before making significant investments.
Hidden Benefit 4: Long-Term Value
Client satisfaction is a critical metric for assessing the ROI of freelance talent. But how do we gauge that satisfaction?
There are traditional ways, such as asking for feedback and ratings at the end of the assignment. For us though, the ultimate proof is something else: Extensions and employment offers.
At Outsized, we frequently see freelancers initially hired for short-term projects, only to have their contracts extended multiple times, sometimes for years. And in cases where there’s a long term need (and mutual agreement), independents are often offered permanent full-time employment.
This trend underscores the importance of client satisfaction as a key driver of long-term value in freelance engagements.
Adaptability to Project Changes
Related to their entrepreneurial wiring- freelancers are typically more adaptable than full-time employees, making them invaluable in dynamic environments. Their ability to pivot quickly in response to project changes or new information supports innovation and ensures that projects stay on track, even in the face of unexpected challenges. In fact, most freelancers enjoy a challenge and have a ‘let’s find a solution’ attitude when it comes to the unexpected.
This adaptability is particularly beneficial in fast-paced industries where the ability to adjust quickly can make the difference between success and failure.
The Bottom Line
The true ROI of freelance talent extends far beyond cost savings. Innovation, flexibility, and long-term value creation are hidden benefits that significantly enhance the strategic advantage of companies that embrace flexible talent models at scale.
It is important that we move away from a pure dollars and cents analysis of ROI and think more broadly about the impact this emerging workforce is poised to make on the world of work.
For an in-depth look at the ROI of freelance talent.
