Freelancer Reliance Rises in US, With 20% of Work Done by Them
- Respondents to survey estimate freelancer use will increase
- Shift allows frims to save on headcount, employee costs
By using contingent workers, short-term and project-based work can be completed when they lack the needed skills internally.
Photographer: Stefan Wermuth/BloombergThis article is for subscribers only.
Organizations are adding more agility to their workforce by increasingly relying on freelancers, according to a new survey conducted by Harvard Business Review Analytic Services.
The shift is allowing firms to save on headcount — which lowers costs — and on real estate expenses. Wages and salaries account for about 70% of employer costs in private industry, while benefit costs account for the rest. By using contingent workers, short-term and project-based work can be completed when they lack the needed skills internally.