HR leaders are increasingly incorporating contractors and freelancers into their workforce strategies. As Liam Neeson taught us in Taken, independent workers can provide a very particular set of skills.
McKinsey estimates that independent workers make up 36% of the US workforce, up from 27% in 2016. The growing market for freelance platforms and solutions highlights the growing popularity of freelancing, as companies like Catalant, Malt, Worksome, and Willa raised eight-figure funding rounds in 2021.
While companies had been using freelance and contingent workers more in the lead up to the Covid-19 pandemic, the mass adoption of remote work and the volatile talent market that followed have led more HR teams to consider this population as part of their workforce strategy.
“Folks have been much more receptive to hiring high-skilled labor, in pretty much every category,” Taso Du Val, CEO of the freelance platform Toptal, said.
How it happens. Freelancer platform execs told HR Brew that demand for their services typically comes from department heads with little to no involvement from HR.
“The functional or business leader is usually the driver of demand,” Du Val said.
A lot of the time, HR is a source of resistance, or indifference, Du Val said. He explained that HR is often “not convinced” of freelancers’ value and has historically had a more “rigid mindset” around the perceived limitations and barriers of incorporating contract workers into the overall workforce strategy.
Overcoming barriers. Tony Buffum, Upwork’s VP of HR strategy, said he experienced exactly what Du Val described during his career as an HR leader at companies including GE, Stanley Black & Decker, and FLIR Systems. Keep reading here.—AK
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