Recent trends show that a new era is about to dawn upon the software business world. As many of you have noticed, there is a rapidly increasing shift towards freelancing among young professionals. If your business is to survive, it’s essential you ride this wave of change, and we will show you exactly how to do that in style.
In this week’s episode of SaaS-Story in the Making, B2B SaaS Sales Coach and Host Matt Wolach and Stoke Talent Co-founder and CEO Shahar Erez get to the bottom of the evolving labor landscape. They discuss how hiring freelancers is the guaranteed destination and everything else that a founder needs to consider. Watch the video so you can learn how to work with freelancers effectively!
Podcast: SaaS-Story in the Making
Episode: Episode No. 231, “The Future of Your Workforce – with Shahar Erez”
Host: Matt Wolach, a B2B SaaS sales coach, Entrepreneur, and Investor
Guest: Shahar Erez, Co-founder & CEO at Stoke Talent
TOP TIPS FROM THIS EPISODE
Use Freelancers to Become Agile
Nowadays, more is needed for companies to have an in-house team. To meet the growing needs of a constantly evolving market, software businesses need to have agility when it comes to their workforce. This is where freelancers take the role, thanks to their nature of being able to work anywhere and anytime.
Apart from helping companies remain on top in the Age of Acceleration, Erez explains that freelancers also provide much-needed budget flexibility. This is even more crucial given that we are in the midst of the fourth economic crisis in two decades. And since there would be no shortage of freelancers, they’re an endless supply of manpower.
Augment Your In-House with Freelancers
While having an in-house team has its perks, sometimes your business would need specialized services. Instead of permanently adding another person to the payroll, companies can turn to freelancers for contractual support. Unlike salaried employees, this also allows the companies to only pay when services are rendered. Freelancers, after all, typically work per project completed.
Companies can go about using freelancers by only hiring them for niched tasks. Core tasks would still be delegated to the employees who are trained within the company and have access to the company’s software. It’s recommended for businesses to opt for freelancers when the task is digital since they will be abundant.
Apply Due Diligence When Hiring Freelancers
For many founders, the main concern when handling freelancers is if they should be given access to company tools. It’s reasonable to be wary since giving software passwords to a freelancer can feel like handing your house’s keys to a total stranger. Erez, however, disputes this by saying that enough due diligence could alleviate this.
Whether a worker is a full-time employee or a freelancer, businesses should apply the same thorough processes. This means HR should look at the freelancer’s portfolio and reviews. Of course, running background checks, getting references, and conducting interviews would help in lessening the probability of hiring incorrectly. Erez states that being a full-time employee is not a guarantee that they would never leak company data, and used Edward Snowden as an example.
Lay the Infrastructure for Hiring Freelancers
Statistics show that hiring freelancers is going to be the new normal in a lot of industries so companies should begin putting the right process in as early as now. Rather than wait for the inevitable and end up scrambling, founders should carefully place the groundwork taking note of everything that is needed.
This means that businesses should already think of what the hiring process for freelancers would be like, which would help in avoiding costly mistakes. It also requires looking for the right tools in managing freelancers. Stoke Talent would be a good place to start as it is holistic in its approach to handling freelancers. The bonus is that the platform would also help CEOs focus on running their businesses instead of wondering what paperwork needs to be submitted for freelancers.
The Freelance Workforce Revolution is Happening
Data from the IRS and DOL show an exponential increase in the number of freelancers not just in the USA, but in the rest of the world. It’s also forecasted that 50% of the US workforce will be freelancers between 2025 and 2027. Come 2030 and this will turn into 60% which means that there will actually be more freelancers than full-time employees.
Freelancers Help Begin Execution
Freelancers are already pretty much-seasoned veterans in whatever niche they are in. By using freelancers, companies can start their execution even before their full-time employees finish their training. Since freelancers accelerate processes, this also means that a company will be able to scale much faster. Erez explains that freelancers are faster because they repeatedly do whatever service they provide.
Freelancers Diversify the Talent Pool
If a company relies only on its employees, they would be limited by their current skill set. Erez says companies may end up settling down for mediocre execution in this scenario. This could be easily prevented by getting an expert freelancer. Erez also explains that it’s inevitable to tap into freelancers since the available talent would shrink by 50% in 2-3 years if companies choose to stick with traditional work arrangements.
Freelancers are Startup Friendly
For startup companies, freelancers can be considered a blessing. After all, freelancers bring competence, affordability, and flexibility in one package. Startups usually find it hard to gather limited capital so freelancers already help ease the burden just from their cost alone. Additionally, as previously mentioned, freelancers expedite business processes which would be invaluable for the first year of a startup.
[13:28] “How do I know the Freelancer is going to be loyal? Well, guess what, by the way, employees are leaving within 12 to 15 months anyway so loyalty is out the window. You’re not searching for long-term loyalty years. You’re searching for someone that can hit the ground running, execute well, work with you, and have the dignity to pass the information to the next guy before they check out the door.”
[16:12] “So our approach is: find the best talent wherever they are. And the world has become flatter and flatter. You can get great talent around the world, sometimes for better fees, sometimes for more talented individuals.”
[5:54] “Interesting. I love it. I mean, I didn’t realize it (freelancing) was so big. I knew that it was something that was happening. It’s something I’ve taken advantage of. I just didn’t realize the shift was so massive. That’s amazing.”
To learn more about Shahar Erez and Stoke Talent, visit https://www.stoketalent.com/.
You can also find Shahar Erez on LinkedIn at: https://www.linkedin.com/in/shaharer/.
For more about how host Matt Wolach helps software companies achieve maximum growth, visit https://mattwolach.com/