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Recession could result in boom time for freelancing

Published on Dec 1, 2009 |

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A business expert says that more companies than ever are opting not to employ new staff but instead look to freelancers and consultants in order to fulfil their business needs.

Freelancers keep businesses competitive

Penny Power, founder of UK social business network Ecademy, says that the shift is a positive, but scary one for many. And inevitable to an extent with the effects of the downturn likely to impact businesses well into next year.

"Businesses have hired suppliers as consultants, suppliers and external advisers for a long time, but there is now a distinct shift toward a 'networked model' of resourcing your company rather than an 'institutional' one of having employees that work full time, when perhaps their niche skill is only needed for a smaller amount of the week. In a global market, that competes on costs, sourcing suppliers is the only way to keep your business competitive."

Flexible workforces for the future

Power's views are mirrored in the recent report by the CBI, which revealed that the economic downturn has been a catalyst for a new era of business, which includes more flexible workforces and wider financing options. Power believes that part of this new flexible workforce will be a focus towards outsourcing specific roles to specialist consultants or freelancers and that people should now be looking to promote their core skills rather than trying to sell themselves based on previous job positions.

"A job is something that gives you security and ties you to the company, but only for as long as your are useful. 'Work' on the other hand gives you the freedom to look for the right type of work to suit you and allows you to find many people who may want you to 'work' for them as a supplier. Having six clients that you work for in a freelance or consultant capacity is far more secure than having one employer in the current climate," says Power.