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UK companies surviving recession by adopting flexible freelance workforce

Published on Nov 23, 2009 |

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A survey of 43,000 small companies reveals the pivotal role played by contractors and freelancers in helping small businesses survive the economic downturn.

The PeoplePerHour.com survey of businesses registered on its site show that many UK companies are surviving the recession by adopting a flexible freelance workforce. 75% of respondents report savings of more than 10% of their usual staff costs by outsourcing jobs to freelancers, amounting to an annual saving of £24.5k for the average small business respondent or 8% of their turnover.

In addition to cost-cutting, thousands of UK small businesses have used freelance sales consultants to help boost their revenue. 24% of respondents to the survey have engaged the services of freelance sales and telesales agents in the past year.

The survey revealed that 35% of respondents have transformed themselves to home-based businesses by using freelancers, saving both overheads and transport costs. For example, Ceri Heathcote first started working from home when on maternity leave and has continued doing so. "I am much happier working from home," she says, "I have a higher income, my current work/life balance is healthier and I don't have to pay all those childcare costs. There is no way I would go back."

Freelancers' role should be recognised

Site founder, Xenios Thrasyvoulou, is leading calls for freelancers' role in the economic recovery to be fully recognised - a timely view for National Freelancers' Day.

"Our survey shows that 78% of our small business users are now growing faster than six months ago," he says.

"This is largely because of their resilience and adaptability to new ways of working. Small businesses are the first to have changed working practices, embrace technology and the web. It is clear from our research that these small businesses wouldn't have coped as well had it not been for freelancers who helped them cut costs, work more efficiently and drive new sales."

"This recession has led many small businesses to recognise the benefits of using freelancers," says Thrasyvoulou. "Our research demonstrates that this is not temporary: 75% of respondents 'definitely' plan to continue using them long after the economic recovery fully kicks in."