Tag Archives: hire

Business Strategy , , , , , , , , , , , Leave a comment

260% Hiring Increase Propels Freelancers Beyond Flavor of the Month

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Mellow, a global contract and payment services platform whose customers are Freelancers, consulting companies and independent contractors, revealed in Their latest report a startling 260% increase in overseas hiring of Freelance workers by U.S. businesses from 2022 to 2024. The report indicates that the projects were also outside of the U.S. and that skill sets in highest demand included engineers, technical writers, analysts and website developers. The organizations for whom the Freelancers worked were Mellow contractor-of-record clients, based in the for U.S. and with 50-200 employees, categorized as Small and Midsize Enterprises (SME). The Freelancers hired were based in regions with emerging economies, primarily Central Asia, the Middle East/North Africa and Eastern Europe.

Mellow researchers interpret the big picture of their findings as confirming the centrality of Freelance workers as essential participants in a global trend that demands flexible work models and as a standard that will ultimately benefit U.S. based Freelancers. Rather than replacing U.S. workers, Mellow investigators see the predominance of flexible work models as creating new opportunities for both businesses and individuals in the U.S. Mellow emphasizes that the Freelancing surge is not about offshoring, but rather about decentralizing work and enabling businesses to be more agile, competitive and profitable.

Freelancers are a core business strategy

The advantages inherent in flexible, ad hoc, project-specific work arrangements were already apparent to both Freelance workers and the organizations that hire them, and the practice was already well established and growing in acceptance and popularity when the 2020 COVID-19 pandemic forced businesses to reconsider their work models and shift their employees into Work From Home mode. The pivot spotlighted the value of both remote work and the availability of a talented and reliable Freelance workforce. Organization leaders now widely recognize the logic of employing temporary talent for specific projects and this acceptance has brought revisions to their strategies for talent acquisition and workforce management. Freelancers are no longer regarded as just a short-term fix, but instead as a strategic advantage that delivers tangible benefits in today’s layoff-prone environment.

Talent management within an organization is no longer considered primarily an HR strategy and is now recognized as a core business strategy that owners, entrepreneurs and executives must recognize. The data makes it clear that organizations are welcoming Freelance talent and the shift isn’t just about cost savings; it’s also about responding to the need to be agile in a hyper-competitive marketplace that includes the realities of a periodically unpredictable labor market.

Market research company Grand View Partners estimates that global Freelance marketplaces such as Mellow, Fiverr, Guru and Upwork will have a 17.7% Compound Annual Growth Rate (CAGR) for the period 2025 to 2030, according to their recently published Market Analysis Report that examined the market size, share and trends of Freelance platforms. Industries setting the pace and providing a template that other companies can follow include Edtech, out front with an average hiring rate of 108 Freelancers and advertising companies, with an average Freelance hire of 34 contractors.

U.S. Freelancers thrived during difficult years

The years 2022-2024 were challenging for many American workers, executives and business owners. Numerous lay-offs, persistent inflation and widespread hiring freezes came on the heels of the coronavirus shutdown. “Quiet quitting,” the great resignation and persistent demands to return to the office—a condition that many employees find unnecessary, if not unacceptable—dominated the echoverse.

The unrest motivated many companies to adopt a flexible approach to getting the work done and increasingly, company leaders acknowledged that Freelance professionals are uniquely qualified to provide the skills their organizations needed. The inclination to hire Freelance workers also aligns with agile business strategy that likewise requires a flexible, capable and cost-effective workforce that drives innovation, growth and profitability.

 In a January 2023 survey of 1,000 U.S. business leaders of companies with more than 50 employees, Resume Builder showed that 40% of those companies hired Freelance workers to replace laid-off employees and 53% convinced some of their full-time employees to accept Freelance positions, in order to remain employed.

Return-to-office and lay-offs poised to increase Freelance opportunities

Lay-offs have been announced by Hewlett Packard, Grubhub, Meta and Chevron; meanwhile, RTO mandates have been repeatedly announced, most notably by J.P. Morgan, along with Amazon, Dell and Starbucks, all of whom are cracking the whip and herding the last of their WFH employees back into the office. As unpleasant as all that sounds (at least to me), Freelancers are positioned to obtain clients and potentially generous billable hours that result from lay-offs and RTO mandates that are ignored. One door closes and another door opens.

Data from Upwork, the Freelance marketplace used by both Freelance workers and the companies that hire them, shows that Freelance labor is 30-60% less costly than W2 employee labor; the latter entails costs such as payroll taxes, social security payments and vacation and sick time, while the former option enables company leaders to pivot into a flexible workforce arrangement rather than lay-off W2 employees (and perhaps face media scrutiny). Furthermore, Resume Builder data also shows the rise of a strategy called “quiet hiring,” that is demonstrated by the 37% of companies that had recent lay-offs and hired Freelancers to replace laid-off workers.

Regarding RTO mandates, the advantages of Freelance talent are not exclusively limited to remote arrangements. In fact, the in-person Freelance model is a fast-growing segment. Spurred by front-line workforce talent platforms specializing in retail, hospitality and even factory workers, in-person Freelance gig workers are solving significant challenges for industries known to suffer from high rates of employee burnout and churn.

The Freelance future is bright

The demand for Freelance talent is expected to energize the employer side of the equation as evidenced by the predicted 17.7% CAGR within 2025 the SME and large enterprise business categories. The rise of start-up businesses and entrepreneurship in general contributes to the increasing demand for Freelance talent, as detailed in the Upwork Freelance Forward 2023 report, that noted Freelance labor contributed $1.27 trillion to the U.S. economy in annual earnings and also noted that 38% of the U.S. workforce, or 64 million Americans, performed Freelance work as either a primary or occasional source of income.

Start-ups often have limited budgets that constrict their ability to hire full-time employees for every role. Fractional executives, who are Freelancers who serve companies on a C-Suite level, are also taking hold at start-ups and Freelance and fractional workers provide start-ups and SME businesses with an affordable way to access high-quality talent on a short-term or project basis. The scalability of Freelance hiring models makes it easier for entrepreneurs to manage fluctuating or unpredictable workloads while maintaining high-quality standards without exhausting financial or labor resources. The ability to hire specialized Freelancers enables start-ups and other businesses to remain nimble and efficient—agile—which is essential for their growth and survival in highly competitive markets.

The success of Freelancing is perhaps best summed up by data from Mellow which reported that in 2023, the average monthly income of Freelance workers in their report grew by 18% and grew by another 23% in 2024. Mellow’s data also confirmed that the way to earn billable hours is to take on more than one client at a time (but you knew that).

Thanks for reading,

Kim

Image: ©Epic Records. Singer-songwriter Minnie Riperton (1947-1979) in the cover shot for her gold album Perfect Angel (1974)

Sales , , , Leave a comment

So Why Should They Hire You?

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Congratulations! A client with a big budget and a need for your kind of services has called you back for a second talk. You’re excited and a little nervous, too. There’s a lot riding on this interview—maybe this is a prestige client who will help you attract still more prestige clients? Maybe you have bills to pay and this assignment is your ticket to solvency?

Whatever your motive, acing the interview and signing the contract are paramount. Then the client throws this last-ditch, totally common and yet potentially flummoxing question at you–“Why should I hire you for this project?”

Most of us will flap our jaws aimlessly, talking about the value-added we bring, our work ethic, excellent customer service or deep expertise. All of these benefits are positive but in today’s hyper-competitive economy, a Freelancer must make a stronger case. We need to make the client salivate to have us on board.

As luck would have it, there are some good stock answers available and they will make you shine. These templates give the prospect the confidence to open the door and bring you onto the team. You maximize the impact by replying in a relaxed tone, keeping your answer clear and simple and avoiding the use of jargon.

Interview coach and author of Convince Them in 90 Seconds (2010) Nicholas Boothman suggests that you try something like this… “You know how an outside specialist has to be flexible and ready for the unpredictable? Well, I know how to adapt to changes, I have initiative and I can cover a lot of bases, so your team members will be able to concentrate on what they do best and I can take care of the other stuff that needs to get done.”

You might also try something suggested by business journalist Geoffrey James, author of Business Without the Bull (2014)…. ” You know how sometimes you can’t find top talent to bring on when you need them most? Well, I have ( x amount of) years experience in (whatever field) that will let me solve your (problem or need) and get the right solution up and running in a short time frame. When you hire my organization, you won’t have to spin your wheels searching for talent and you’ll avoid the risk of hiring the wrong person.”

Here’s a cool little retort for the Freelancer who has not seen age 35 in a few decades and it works whether one is speaking to a Baby Boomer, Gen X, or Millennial…”You know how sometimes people can get into emotional battles over how to approach a problem? One of the most important things I’ve learned over the years is how to bring these kind of conflicts to a quick resolution. If I’m on your team, you’ll not only get an experienced (name the specialty), but also someone with perspective, who can guide a team away from butting heads and toward getting the work done.”

Note that your answer positions you as the solution to the client’s problem or need and that is precisely how you want to be perceived, for that is why you will get hired. You may devise other answers that more closely reflect the circumstances of your field. Anticipate the question in advance of your next client meeting and think of scenarios that will help you answer the “Why should I hire you” question in a way that focuses on the client and how you can make his/her life easier.

Thanks for reading,

Kim

Administrative , , Leave a comment

Got Help?

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Freelance consultants usually work solo,  building a client base gradually over time,  developing and refining our personal brand and deriving great satisfaction from operating our boutique enterprise.  We take pride in keeping the show on the road all by our lonesome,  whether we’re making a killing or bumping along.  Especially in a troubled economy,  fear of an inconsistent paycheck causes the majority of us to avoid hiring help.   However,  an unbiased examination of reality may show that this practice could depress one’s earning potential.  To test the premise,  I invite you to ask yourself four questions.  Do any of these conditions exist  in your business?

  • You neglect following up on leads because you’re too busy working,  servicing clients or doing administrative duties such as billing and bookkeeping.
  • You’ve turned down business,  because you don’t have time to take on another client.
  • Revenue is no longer growing because you are not meeting prospects that you can persuade to become new clients.
  • You have only one client (although perhaps a good one).

Hiring help may resolve those problems,  but the process can be scary.  Who can you trust to enter your business,  advance its goals and not make you look bad? Can you be certain that there will be sufficient cash flow to make payroll?  Which duties should you hand over to an outsider?

The decision to hire begins when you let yourself recognize when it’s time to hire.  To ease your fear,  re-frame the scenario and think of an employee not as an interloper and a drain on your expenses,  but as a potential revenue enhancer who will give you time to apply to activities that will grow your business.

You’ll need a job description,  so decide what it is you dislike doing and what functions can be taken from your plate.  For example,  if you dislike billing,  bookkeeping,  answering the telephone and/or making Power Point presentation slides,  you’d hire an administrative assistant.  A call to Katharine Gibbs or other secretarial schools will give you a source of applicants who are vetted through the school and likely to be qualified and trustworthy.

If prospecting and account executive duties are not your favorite,  then you need someone who will help fill your sales pipeline,  follow-up on potential speaking and teaching engagements,  write press releases and assist with certain client needs.   Vetted candidates with marketing and sales skills can be accessed through university MBA programs.

Next,  make a quantitative assessment by doing a 12 month revenue projection,  to demonstrate that you can comfortably expect to meet all fixed and variable expenses,  including your owner’s draw,  and also fund an employee.   Search Craig’s List to determine the going hourly rate in your geography for the skill set you need.  Following that,  check with your accountant or tax attorney and get the latest info on tax breaks for hiring within special categories,  such as the long-term unemployed,  and how that can help subsidize your employee.  Your tax attorney or accountant will also advise you on payroll withholding and may do payroll for you  (or recommend a bookkeeper or payroll service).  All those expenses will be included in your hiring process financial projections.

Interview three or four candidates.  Check references.  Start small and hire someone for a three month trial for maybe 8 – 10 hours/week,  to see how things work.  Once you get your new hire trained and operating at full capacity,  you may be pleasantly surprised by how much more revenue-generating work is taking place!  If for some reason your new hire isn’t working out,   make sure that you are communicating expectations appropriately.  If you can assure yourself that you are doing so,  then hire another candidate.

Establishing a profitable business requires the effective  management of all resources and that includes staffing.  Freelance consultants must be especially aware of resource management,  because we go it alone and the  list of what it takes to run a viable business continues to grow.   We love what we do,  but keeping the bases covered is time-consuming and can be  exhausting.  Before you dismiss the idea of hiring help,  realize that doing so may limit business growth and revenue.

Thanks for reading,

Kim

Administrative , , Leave a comment

How to Hire an Intern

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Perhaps by some miracle business has picked up and you need some help,  maybe for just a few hours each week.  You foresee that your need for help could last for some time and you’re ready to commit to a trial of at least six months.  You don’t have much money to spare,  but see that you’re probably losing money as you spend time performing certain functions that could  be handed over to less expensive labor,  which would allow you to focus on the vital aspects of client projects,  search for more billable hours and engage in other business-building activities.  Bringing on an intern may be the solution to your dilemma.

If you live in a locale with at least one college or university,  then you may have a source of interns to help you with business needs.  Interns can be a valuable resource,  especially for those who cannot afford to hire full-time employees.  With some planning,  a busy Freelancer can devise a win-win situation for both business and intern.

Plan to  offer a paid  internship.   Unpaid internships narrow your candidate pool more than you may realize.  In today’s economy,  many students must generate an income.  College has become wildly expensive and students and/or their parents often go into significant debt to finance their education.  Daddy may not be able to send spending money every month.

Paid internships provide a student with the tangible benefits of relevant work experience,  a reference for future full-time employment or graduate school application and a much-needed paycheck.  Moreover,  unpaid internships may present a legal snafu.  Strict federal and sometime state guidelines limit the hiring of unpaid interns to discourage student exploitation.  If you can find an intern whose financial aid package includes work/study,  the grant will absorb some of the hourly rate cost and save you money.

Start your search by thinking carefully about which tasks can be farmed out to an employee.  Be mindful that internships are not designed to provide businesses with low-level labor performed at low pay,  but rather to provide apprentice-level  learning opportunities.  Be realistic about what you can offer an intern.  Be prepared also to provide adequate instruction and supervision,  because you will be dealing with a young person who will need some guidance.

Next,  contact the school’s career services department or academic department that aligns with your professional needs  (e.g., communications or computer science or business).  Colleges are very eager to help match interns with prospective employers because that makes them look good.  Be ready with a basic job description and qualifications  (like web design or writing skills),  as well as what level of students you will work with  ( seniors, most likely). 

Remember also that students live on the academic calendar.  That means they disappear from about December 15 – January 15 for Christmas break,  they may disappear for a week during the April spring break and they may go home on May 15,  unless they can afford to stay in town for the summer or it’s convenient to commute in.

Plan to interview at least three or four candidates before you make your selection.  When you make an offer,  institute a 30 – 60 day trial period,  at which point you can decide whether the arrangement is working out.  Create the conditions for success by thinking through and communicating expectations clearly.  Discuss with your intern what s/he will be able to learn and be transparent about how performance will be measured.  Expect to spend time supervising your intern and maybe also explaining things twice. 

Empower your intern to show some autonomy and creativity once things get rolling.  Invite your intern to make some suggestions and offer opinions.  You never know,  you might learn something useful and you’ll show the intern that s/he is valuable. 

Always treat your intern with respect.  Assign meaningful work and provide the required training,  tools and follow-up to ensure that tasks are performed satisfactorily.  Offering an internship is your chance to mentor a young person and the rewards can be personal as well as professional for both parties. 

In the ideal circumstance,  your intern will give you the time to expand billable hours to such a level that you can offer to hire him/her full-time,  the ultimate win-win situation.  Good luck!

Thanks for reading,

Kim