On Contracts, 'Freelancers taking over the job market,' and the rules of engagement
19 / 11 / 2024
Total workforce management, the blended workforce, hybrid teams...
These terms essentially refer to working with a total labor potential composed of various types of contracts and engagements. From in-house employees to specialized freelancers, outsourced staff, and temporary contracts (Kaplan, 2008).
This trend fits within the broader movement towards the flexibilization of employment contracts and an increase in freelance profiles. In 2023, no less than 43% of Millennials and 52% of Gen Z workers in the U.S. were already freelancers. According to Gartner, this trend is expected to grow to 35–40% of the total global workforce by 2025 (Harvard Business Review, 2024).
When we talk about a more inclusive approach to skills and talent management, we must also account for this diversity of professional engagements and work arrangements.
The benefits are clear:
- Expertise and innovation: Working with a flexible pool of professionals allows you to bring in expertise and foster innovation. A fresh perspective on daily operations, benchmarking your practices against many other organizations, is invaluable.
- Entrepreneurial mindset: These professionals are entrepreneurs by nature, taking shared responsibility for their objectives. Ownership is baked into their approach—fantastic, isn’t it?
- Adaptability: A flexible workforce allows organizations to respond to market fluctuations while maintaining a core team to safeguard knowledge (Adelsberg & Trolley, 1998; Thompson & Mastracci, 2005; Dong & Ibrahim, 2017).
But you might be thinking
“All well and good… but I’d rather have a stable team. Managing a pool of freelancers or temporary project staff seems incredibly challenging.”
Challenges & solutions:
1. How do you ensure organizational citizenship from everyone in the organization?
It’s good practice to onboard flexible colleagues the same way you would onboard in-house employees. Investing in integrating them into your organization’s purpose and culture from the start is well worth it. Additionally, setting clear expectations is essential (Allen, 2015). For example, include representing the organization on social media in the agreements or expectations you establish with freelancers, associates, or project staff.
2. How do you manage, engage, and retain your flexible workforce without a formal hierarchical relationship? Isn’t that much harder?
Not necessarily. The role of a manager today is evolving into that of a framework-setting facilitator of ownership. This applies equally to freelance and project-based colleagues. By entrusting them with meaningful projects, you spark their enthusiasm and strengthen their commitment. Have conversations with them just as frequently as with your permanent team, because focusing on personal development is crucial for everyone!
3. What if my core team resents the autonomy freelancers seem to enjoy?
This concern is understandable but often unnecessary. Both flexible contract workers and in-house employees consciously choose a psychological contract that aligns with their needs (Das & Bhattacharya, 2022).
Nevertheless, it’s worth reviewing internal flexibility and recognition. It’s crucial to ensure that in-house employees aren’t always expected to be available while freelancers enjoy complete freedom. Offering financial benefits that freelancers don’t have access to, as well as internal leadership development programs, can encourage in-house employees to stay motivated and invested in building long-term careers within one organization.
The secret to a sustainable workforce:
The ideal blend for a sustainable workforce lies in diversifying engagements while breaking down rigid distinctions between “in-house” and “flexible” staff.
Written by:
Charlotte Van Beirendonck - Senior Consultant & People & Operations Management
