An online-only freelance workforce is quickly becoming a permanent part of the economy. Should you consider taking part?
Our economy is going through transformative changes and many of the principles that held true for decades about work are no longer valid. One of the most recent changes taking place is the rise of the online-only freelancer. These are people that work independently as contractors and who obtain their clients mainly or exclusively through online channels. More importantly, this is a fully globalized workforce; they live in multiple countries and take clients from all around the world. The Department of Labor, which tracks thousands of statistics and indicators associated with the labor force, has yet to develop formal indicators to track the growth of this segment of the workforce. There are, however, private organizations that produce reliable statistics on the online-only workforce.
Elance is an online hub which matches and facilitates project-based work between online freelancers and companies that wish to hire them. Over 500,000 freelancers actively seek work on Elance. Given the scale of the company’s operations, they now produce quarterly reports based on their membership that provide insight into key trends for the online-only workforce. According to the company’s third quarter “Online Employment Report” over 150,000 projects were posted from July through September as part an expected annual total that will exceed 600,000 projects. Based on these trends, it’s clear that working with online-only freelancers is not a fad, but instead is becoming an important part of the overall economy. If you haven’t done so already, you should consider using online-only freelancers as part of your overall workforce. Before you do, however, consider these recommendations:
Take a gradual approach
I have been hiring online freelancers for nearly 10 years. At first I was too eager to take advantage of the rapid turnaround times and low prices they offered. On more than one occasion I hired the wrong person and was left with poor quality work or late deliveries. Now, I always try out a potential freelancer with a small, relatively inconsequential project to test their performance. If they manage this well, I gradually move them up towards more important projects. This weeding out mechanism has worked well—many small projects held as tests could be done for less than 100 dollars.
Establish relationships with your online-only workers
Just because the person you are hiring may be thousands of miles away doesn’t mean there isn’t a way to establish a relationship. It’s important to have regular conversations via Skype or GoToMeeting or similar tools where you can see each other’s faces. This creates a personal connection and helps integrate the freelancer into your team.
Prepare your existing employees
Some existing employees may feel threatened by the presence of online-only workers who are far less expensive and easier to terminate than they are. Reassure them that your company isn’t experimenting with a way to replace them; instead, the goal is to augment their work or manage growth in a cost effective way. Also remind them that not all work can be done in a virtual setting.
