The gig economy is here to stay. More people than ever are choosing the flexibility and autonomy of freelance, contract, and on-demand work over traditional 9-to-5 employment. Over 36% of U.S. workers participate in the gig economy through either their primary or secondary jobs, and this is predicted to surpass 50% by 2027. As a business leader, managing a gig workforce comes with unique challenges compared to overseeing permanent full-time employees. Here's how to set your company and contingent workers up for success in the freelance revolution.
Unlike full-time staff, freelance and contract workers don't go through a standard onboarding and training process when joining your company. However, that doesn't mean you can skip this crucial step. Dedicate time upfront to orient gig workers to your company's mission, values, policies, and goals.
Share documentation, hold kickoff meetings, and set clear expectations for each project. Establish a consistent onboarding process you can streamline and repeat. This sets gig workers up for success and saves you time in the long run. According to Harvard Business Review, investing in freelancer onboarding and training improves work quality, productivity, and retention.
Communication breakdowns are one of the biggest pain points when working with a distributed freelance workforce. Without regular in-person interactions, it's easy for misunderstandings to arise and important information to get lost. Implement tools and systems for clear, consistent communication with your gig workers.
Use a centralized project management platform to share files, assign tasks, and track progress all in one place. Hold regular check-in meetings via video conferencing. Establish guidelines for communication methods and response times. The more proactive and organized your communication, the fewer fire drills you'll face.
For many gig workers, the biggest drawback of freelancing is income uncertainty and instability. One study found that half of freelancers would prefer the security of a traditional job. As an employer, you can build trust with your gig workforce by being transparent about current and upcoming work opportunities.
Give freelancers as much advance notice as possible about project timelines and potential future assignments. Be upfront about compensation, payment schedules, and any changes that may affect their work. Show that you respect their time and skills. Transparency fosters loyalty and commitment from your gig workers.
Annual performance reviews don't really work for gig workers who come and go between various projects and clients. However, your freelance workforce still needs frequent feedback in order to learn, grow, and perform their best. Make a habit of giving specific, constructive feedback in real-time throughout projects.
For example: "You did a great job breaking down the technical concepts in this article to be understandable for a general audience. For the next piece, I'd love to see even more practical examples woven throughout to illustrate the points." Aim to give a mix of positive reinforcement and constructive critiques focused on actions and results. Regular feedback keeps gig workers engaged and motivated.
Often, freelance and contract workers are treated like a separate, peripheral part of the workforce compared to full-time employees. They're integrated enough to complete assignments, but not truly included in the company culture. This is a huge missed opportunity. Harvard Business Review found that when gig workers feel like a meaningful part of the organization, it boosts their productivity, work quality, and advocacy.
Look for ways to include your extended workforce in company communications, events, and culture as much as possible. Invite them to join bigger picture conversations, not just tactical project discussions. Keep them in the loop on company news, wins, and challenges. Actively solicit their ideas and input. Building a culture of inclusivity will help you attract and retain top freelance talent.
While you may not be able to offer gig workers the stability of a long-term permanent position, you can provide other forms of reliability that freelancers crave. Aim to give your best gig workers a steady stream of projects with your company over time. Proactively plan ahead to slot them into upcoming initiatives. Communicate about potential future opportunities to give them a sense of income security.
Even more importantly, invest in building real relationships with your freelance workforce. Get to know them as people, not just resources for projects. Celebrate their successes, recognize their contributions, and support their professional development. Creating an organizational culture where gig workers feel valued and secure in their relationship with your company will boost retention dramatically.
Speaking of professional development, don't forget to support the ongoing learning and growth of your gig workforce just as you would for full-time employees. Provide opportunities for them to develop new skills that will help them advance in their careers. This could include anything from online training courses to conference passes to internal lunch and learn sessions.
Offer mentorship and coaching, especially to your younger freelance talent. Give constructive feedback focused on their long-term professional growth. Look for stretch project opportunities that will help them gain experience and expand their capabilities. When gig workers feel like you're invested in their career trajectory, not just their output on a given assignment, they'll be more likely to stick with your company for the long haul.
One of the hardest parts of being a gig worker is the isolation and lack of community that can come with freelancing. As an employer, you have an opportunity to foster connection and camaraderie amongst your freelance workforce. Create virtual and in-person spaces for gig workers to interact, share ideas, and build relationships.
This could be anything from a dedicated Slack channel to a quarterly freelancer meetup. Facilitate introductions between gig workers with complementary skills or experiences. Encourage knowledge sharing and collaboration. Organize social events and team-building activities. Freelancers who feel a sense of community and belonging with your company will be more engaged and satisfied with their work.
One of the most complex aspects of managing a gig workforce is ensuring compliance with worker classification laws. Misclassifying employees as independent contractors can lead to costly legal penalties. It's crucial to understand the federal and state regulations around freelancer classification and make sure your practices are compliant.
The primary factor that determines classification is the degree of control the employer has over the worker. Freelancers must have autonomy over when, where, and how they complete their work. They should use their own equipment, set their own hours, and work with multiple clients. Consult with legal counsel to audit your worker classification practices and make any necessary changes. Proactive compliance will save you major headaches down the road.
As your usage of gig workers grows, trying to manage a large external workforce with ad hoc systems will become unsustainable. You'll need to put scalable programs and processes in place to efficiently oversee your freelancers. Invest in a freelancer management system (FMS) to streamline all aspects of working with gig talent.
A robust FMS will handle everything from sourcing and onboarding to project management and payment processing. It will give you a centralized way to manage your entire freelance workforce. Implementing this type of system will save you significant time and money in the long run. It will set your company up for success in strategically leveraging gig workers as a core part of your workforce.
The gig economy presents both challenges and opportunities for employers. By being proactive and intentional in your approach to managing a gig workforce, you can reap the benefits of flexibility, agility, and access to specialized skills. Prioritize clear communication, inclusion, stability, development, and compliance. Most of all, treat your gig workers as valuable contributors to your company's mission and success. With the right strategies and systems, you can build a thriving, blended workforce that leverages the power of the gig economy.
Managing a growing gig workforce? Discover the strategies and systems you need to build a thriving blended workforce in the freelance revolution.