Freelancers Get Boost as Regular Wages Dip
Where are companies spending the money they're saving on salaries, payroll taxes and benefits? Hiring freelancers, of course. In fact, SurePayroll indicates June is the fifth month in a row that saw a rise in companies engaging contractors. Breaking down the numbers, the survey indicates there are around 3.54 contractors for every 100 employees. That may not seem significant, but you can expect to see those numbers increase as the economy continues to tighten the purse strings of employers. Hiring freelancers can be a less expensive option that comes with an easy out once a project ends.
As a freelancer, the key is to take advantage of the "positive" shift in the market. Do you use economic realities as a marketing tool? Let us know if your marketing efforts tout the cost-savings benefit of using your freelance services.
I always capitalize on downturns in the economy. My marketing materials reflect the benefits of utilizing my services on a consulting basis in lieu of hiring a full-time employee, because it really is more cost-effective for a business owner. With companies like MBO Partners becoming more prominent, it’s now possible for everyone to get what they need out of these situations, where previously freelancers had the added costs of carrying individual insurance plans and paying self-employment taxes. These companies act as an employer of record, handle invoicing and collections for independent contractors, and offer access to benefits one might receive by working for a corporation, such as group healthcare and retirement savings plans. I’ve personally been working with them for almost a year, and will definitely continue to, if not for the benefits I’ve already mentioned, for the competent, friendly, knowledgeable and helpful business managers that go out of their way to make my life easier every day. I would highly recommend them to anyone who has been downsized and going freelance or those who are already independent consultants but becoming more active in order to capitalize on the current state of our economy.