The internet has changed how we do business — and that includes creating a whole new sector of the workforce. Ever since Uber and Lyft took the concept of the gig economy mainstream, freelancers and contract workers have forged a viable new career path.
Not long ago, freelancing and contract work was reserved for experienced experts who were well-established in their career fields. Today, some young talent has only worked in the gig economy, as mobile apps and social media help them build careers and connections. Now, it’s the challenge of recruiting teams to find and attract top talent who may have never worked in a traditional environment.
Beyond recruiting seasoned experts and rising talent, embracing the gig economy has many other benefits for your company. Utilizing freelancers and contract workers gives you access to highly specialized skills, on-demand and without committing to costly full-time hires. Here are some tips to help your company’s journey into recruiting from the gig economy.
Utilize Freelance Platforms and Marketplaces
In 2024, there are more than 76 million freelancers in the US gig economy. That’s up 33% from 2017, and the number is projected to grow to 90 million by 2028. The main reason for this explosive growth is the rapid rise of gig economy apps. It’s no longer just about Uber and Lyft, as many online platforms connect businesses with freelancers available today. And since these platforms attract a lot of contractors who are ready to work, they’re a great first stop in your recruiting process.
Among the most popular are Upwork and Fiverr. Both are general-purpose freelance platforms that can help you find everything from database administrators to digital marketing specialists. Fiverr is geared toward smaller projects with lower costs, while Upwork can link your company with experienced professionals from various industries.
There are also platforms tailored to specific sectors, like Stack Overflow for software developers and sysadmins. If you’re looking for a freelance professional with a unique skill set, check out these dedicated talent marketplaces first.
Develop Clear Project Scopes With Firm Expectations
Whether you land your gig worker from an online platform or more traditional recruiting methods, it’s critical to define the scope of their work. Remember that these are independent workers with different approaches to getting things done. They may even be fully remote workers who won’t have the daily guidance of your management team.
The best way to ensure success with gig workers is to set firm expectations and then define a project scope with specific objectives and milestones. This ensures everyone’s on the same page.
For each project you hire a gig worker for, put the following in writing:
- Project milestones: Break the project down into smaller, time-bound milestones.
- Deliverables: Define what the freelancer should deliver by each milestone.
- Deadlines: Set appropriate deadlines for delivery of each milestone and overall project completion.
- Communication channels: Agree ahead of time how you will communicate with the contract worker — email, messaging apps, phone, video conferencing, or some combination of all methods.
Maintain Strong Communication With Your Freelancer
Once you’ve agreed upon the preferred communication channels, stay in regular contact with your freelancer. Successful projects require open communication and regular feedback.
Remember that communication is a two-way street. Be responsive to the freelancer’s questions and give them what they need to succeed.
Offer Competitive Compensation and Benefits
Many gig workers end up freelancing after a successful run as a traditional employee. The experience and knowledge they gained allowed them to strike out on their own, without the safety of regular work and employer-provided benefits. For these and other reasons, some contract workers can ask for a high hourly rate or a hefty fee per project. To recruit this type of worker, you must be prepared to meet their compensation demands.
For longer projects, offering health insurance benefits may make sense. An extra benefit like this might help you land an in-demand freelancer over other companies competing to hire them. If insurance or other traditional benefits aren’t feasible, consider other perks like referral bonuses, where freelancers can earn extra money for recommending other qualified gig workers.
Building Long-Term Relationships with Freelancers
Freelancers and contract employees used to be a rarity in the workforce. It’s a different story today, with some top talent working exclusively in the gig economy. According to the projections, contract work will become more common in the next few years. If your company hasn’t tried the gig economy yet, now is the time. You can develop a pool of exceptional talent with freelancers while recruiting fewer full-time workers at the same time.
The trick is to find the right freelancers for your organization, define a narrow scope of work, and maintain communication throughout the process. Once you master these steps, you’ll find that more gig workers want to work for your company. To learn more about recruitment trends, hiring, and other industry topics, follow MRINetwork.