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You should use freelancers instead of full-time employees: here’s why

You should use freelancers instead of full-time employees: here’s why

Reflecting on the last decade, the Freelance Nation or “Gig Economy” has transformed the future of work and business landscape within Canada. A study by Randstad Canada in 2017 estimated between 20% – 30% of Canadian workers engage in some form of contingent, consultant, contractor, part-time, virtual, or freelance work. According to Statistics Canada, temporary employees have outpaced the growth of permanent employees. Further, 60% of 18 – 24 year olds, from the Millenial and Gen Z generations, are part of the gig economy within Canada.

While the gig economy is typically viewed as ‘on-demand’ work (think Uber and TaskRabbit), there is a ground swell compiled of educated, niche, sought after professionals and freelancers (Upwork, Guru, Freelancer, Fiverr). What we are seeing in the Canadian economy is a hollowing out of the middle, where educated, experienced, and high-wage professionals are leaving traditional jobs for flexibility within crowdsourcing marketplaces. These professionals range from lawyers, programmers, architects, accountants, and digital designers.

Alberta businesses are tapping into this market and questioning the value of being boxed in to traditional employment relationships. Let’s explore how the freelance and gig economy can help your business grow:

Reduced costs

It is cheaper for businesses to partner with freelancers, rather than hire full-time, because it offsets having to pay benefits, health or life insurance, pensions, vacation time, equipment, office space, and taxes. It’s estimated that businesses save 20% – 30% annually by outsourcing typical in-house expertise.

Boundless

Businesses in Edmonton and Calgary utilize the freelance economy to source talent on a global scale, securing deep technical expertise not limited by geography.  Further, because freelancers work globally, spanning different markets, industries, and customer segments, they have a backpack of international knowledge, typically not seen in small, localized talent pools.

Mitigate Risk

By outsourcing expertise to freelancers, businesses deescalate risk because freelancers have no right to workers’ compensation, unemployment insurance, or ability to sue for discrimination or harassment.

Turnaround

All employers have felt the pain of vacant positions while recruiting. With the dramatic rise of freelance platforms, businesses in Edmonton and Calgary can secure talent immediately with consultants commencing work ASAP. Oh, here’s the best part, by connecting with talent directly through these platforms, businesses further reduce costs by cutting out the ‘middle-man’, traditional recruitment and employment agencies.

B2B

Freelancers are business owners too. Without repeat business and satisfied clientele, they’re virtual doors close. In comparison to full-time, permanent employees, freelancers can’t afford to have highs and lows – the future of their business is only as good as the work they produce.

The crowdsourcing marketplace is irreversibly changing the Canadian workplace and, as Alberta companies seek to slash costs and optimize operations, the gig and freelance economy provides a viable solution. There is a buffet for businesses to pick and choose the ideal mix of talent, including permanent employees, freelancers, and subscription-based expertise like Atled Consulting Inc. Are you ready to outsource and reduce costs? Connect with us today.