Freelance survey 2012

FREELANCE SURVEY 2012

Content  A word on the methodology used  How the market for freelancers looks like  What is the freelancer facing? The freelancer perspective  Freelancers and Service Providers, a Win-Win scenario?  ConclusionsPresentation1

What is a Freelancer? We define a freelancer as an interim manager, or expert working on a temporary and independent basis with a company or organization.Presentation1

Freelance Survey Joint initiative Online March - April 2012 500 respondentsPresentation1

Finance, Banking & Insurance Who were these 500 Freelancers? Industries IT & Telecom Non profit Other Healthcare - ICT Creative, Art, Culture, Photography, etc Fast Moving Automotive, Transport & Logistics Utilities Public Biotechnology Education Travel, Tourism & HoReCa MediaPresentation1

Who were these 500 Freelancers? Activity domains Marketing & Communication R&D & Engineering Sales ICT Procurement, supply chain & logistics Project Management Finance & Accounting Administration HR & Training Operations: Production, manufacturing & quality Legal Customer Service OtherPresentation1

Who were these 500 Freelancers? Age & Experience Age Experience 0 2% 7% 1 19% 2 55% 7% 14% 3 22% 26-30 4% 4 25% 31-40 1% 5 41-50 3% 6 51-60 6% 14% 7 61-72 8 44% 6% 9 6% 12% 10 9% >10 N = 198 N = 343Presentation1

Who were these 500 Freelancers? Gender 79% 21% N = 380Presentation1

9 Who were these 500 Freelancers? Regions of activity “Golden Triangle” 41% 13% 24% 12% 60 % 31% 13% 5% 4% 23% 4% Abroad 2% N = 372Presentation1

How the market for freelancers looks like THE MARKET FOR FREELANCE ASSIGNMENTSPresentation1

After some challenging years, the freelancers anticipate a positive trend 2012 N = 418Presentation1

Chargeability over the last 6 months Did you find an assignment during last 6 months of 2011? I didnt find an assignment 8% It was my choice not to have an Yes No assignment 85% 15% Im a freelancer only since 2012 4% Other 1% 2% N = 422 N = 64Presentation1

Competition is increasing 2009 2010 H1 - 2011 H2 - 2011 H1 - 2012 H2 - 2012 55% of freelancers feel and expect higher competition N = 407Presentation1

Fee evolution is negative 2009 2010 H1 - 2011 H2 - 2011 H1 - 2012 H2 - 2012 N = 398Presentation1

Age, Gender & Education are factors that influence the daily fee Impact of age on fee 750 700 Impact of education on fee 100% 4% 4% 2% 5% 5% 650 6% 5% 90% 6% 21% 80% 21% 600 28% 70% 32% 550 60% 31-40 41-50 51-60 61-72 50% 37% 40% 65% Average fee Median Fee N = 282 30% 55% 44% 20% 23% Impact of gender on fee 10% 750 10% 12% 5% 8% 0% 700 Bachelor or Master or Post PHD/ MBA 650 High school High school university 600 711 short type long type or 640 university 550 500 300-499 500-699 700-899 Man Woman 900-1099 1100-1299 1300-1500 Average Fee Median FeeN = 301 N = 295Presentation1

The assignment role and sector also have impact Impact of roles on fee Impact of sector on fee 850 140 800 800 120 700 750 100 600 80 500 700 400 747 727 714 709 60 300 705 705 704 698 698 687 673 663 650 40 200 600 100 20 0 550 0 Average Fee Count Average Fee Median FeeN = 334 Median Fee N = 340 Average Fee per Assignment Duration 740 Average rate per billable days per 720 week 700 750 680 660 700 640 620 650 600 600 0-3 4-6 7-12 1-2 years More than 2 3 4 5 months months months 2 yearsN = 340 N = 309 Presentation1

What is the freelancer facing? The freelancer perspectivePresentation1

Once a freelancer, ‘always’ a freelancer 61% would not Only 3% considers return to a payroll returning to a job payroll job Remarkably, those considering to return don’t match the ones that became freelancer through restructuring N = 496Presentation1

What drives and what holds you back? N = 496 N = 488Presentation1

For over 50%, the 5-day week is not the standard Billable days per week 6 1% 5 49% 4 28% 3 16% 2 5% 1 1% 0% 10% 20% 30% 40% 50% - Older Freelancers work less days per week than their younger peers. - Only 27% of 60+ work 5 days a week N = 362Presentation1

The own network preferred and most efficientsourcing channel, closely followed by serviceproviders Net Promoter Score – Effectiveness Channel 5 0 Own network Service providers Direct contact Online sites for Social media (including prior with current searching clients) clients freelance jobs -5 -10 -15 -20 -25 N = 375Presentation1

How to mitigate the Financial uncertainty Over 1/4th of Freelancers has more 1/4th of Freelancers has extra than 1 assignment remunerated activities 25% 29% One No 45% Multiple Yes None 75% 26% N = 490 N = 401 Common extra activities: • Accounting • Teaching/Coaching • Directorship • SalesPresentation1

Finding assignments: the average length between assignments is 2,28 months Average length in months in between assignments 30% 25% 20% 15% 10% 5% 0% 0 1 2 3 4 5 6 7 >7 50% This means that on average, a freelancer is billable for 81% Partially, this is an own choice. N = 326Presentation1

Freelancers want and get assignments of 7 months to 2 years Assignment Duration 40% 35% 30% 25% 20% 35% average duration (N = 406) 32% 31% 15% ideal duration (N = 409) 10% 20% 20% 22% 13% 13% 5% 9% 6% 0% 0-3 months 4-6 months 7-12 1-2 years More than 2 months years The ideal assignment length is 7-12 months (seconded by assignments of 1-2 years)Presentation1

Freelancers and Service Providers, a Win-Win scenario?Presentation1

Facts & Figures Do you have experience in working with Would you consider to work via 1 service Service Providers? provider exclusively? 18% Yes No 43% 57% 82% 35% of ALL freelancers consider working exclusively N = 393 N = 319Presentation1

Facts & Figures: Who is the preferred partner? Which type of Service Provider do you know and For which type of agent are you most likely worked with? willing to work in the future? 100% 4% 8% 7% 13% 90% 19% Quality agents 26% 19% 80% 33% 37% 25% Umbrella agents 6% 10% 70% 60% 47% 4% Expertise domain 8% 41% experts 50% 15% 40% 38% 58% Match makers 16% 32% 3% 30% 28% None 5% 20% 25% 10% 22% 20% 12% Big 4 6% 7% 10% 0% Match Expertise Umbrella Quality Big 4 0% 20% 40% makers domain agents agents experts I don’t know this type I know the type but never worked with them I know the type but I’m not interested in working with them I sometimes work with themN = 310 I always work with them N = 302 Presentation1

Hate-Love relation: What FL don’t like about SP’s Why wouldn’t you work with a Service Provider? Disadvantages of SPs 35% 180 30% 160 140 25% 120 20% 100 33% 80 157 15% 29% 24% 60 10% 40 5% 11% 20 7 16 5 16 7 3 8 8 0% 2% 0 communication/relationship FL/Internal Consultants Short termism Treatment as subordinate Body Shopping High intermediary margin Low contact with end-client / Bad profile vs assignment up/support/feedback I dont like I dont see I want to Did not Other Competition with other purpose of the assignement they take a their added remain know that Lack of follow- margin on value independent existed my fee iso partner match Bad * 65 out of the 500 respondents answered this question N = 65 N = 258Presentation1

Hate-Love relation: Loyalty Loyalty FL towards service providers Loyalty service providers towards FL 25% 20% 20% 15% 15% 10% 22% 10% 14% 15% 16% 17% 13% 11% 12% 5% 9% 5% 8% 6% 8% 8% 7% 8% 5% 5% 2% 4% 2% 3% 5% 0% 0% 0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10 Loyalty from 0 (not loyal) to 10 (absolutely loyal) Loyalty from 0 (not loyal) to 10 (absolutely loyal) > Average loyalty of Freelancers Average loyalty of Service towards Service Providers; Providers towards Freelancers; 7,92 6,34 N = 315 N = 308Presentation1

Hate-Love relation: But in times of crisis What will be your most likely strategy in times of crisis? 60% 50% 40% 30% 55% 20% 10% 21% 14% 7% 2% 0% I will contact a I will stay working a I will commit to one I will try to get a Other diversity of service a freelancer without service provider permanent position providers commiting to a service provider N = 417Presentation1

Freelancers have clear expectations Main actions that Service Providers can take or develop further to optimize your role as Freelancer 80% 70% 60% 50% 40% 68% 30% 52% 52% 50% 20% 10% 0% Sharing Organizing Support during Organizing knowledge network events assignments trainings N = 363Presentation1

Presentation1 SP’s N = 138 Guaranteed number of chargeable days Administrative assistance Network possibilities Support during assignments Training possibilities Primary motivators to work through Lead generation fees Earning of quality label: references,,, Access to company knowledge

Freelancers find this with? Willingness to work with current SP 60% 50% 40% 30% 56% 45% 20% 31% 10% 22% 15% 0% Expertise Quality agents Match makers Big 4 Umbrella agents domain experts N = 267Presentation1

What did we learn?Presentation1

Conclusions on freelancers Main motivators: Freelancers are aware autonomy & variation – that market is getting and not fee or flexibility more competitive Social media: Important sourcing present, but not as an channels: own network assignment finder & service providers Higher education results Gender inequality in in higher fees fees Preferred type of Concerns towards service provider: service providers: expertise domain margin, added experts value, loyaltyPresentation1

Conclusions on service providers Finding the right Financial assignments compensations Expertise Networking developmentPresentation1

ONCE A FREELANCER,ALWAYS A FREELANCER

Freelance survey 2012

by The House of Marketing on Jun 20, 2012

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Freelance survey 2012 Presentation Transcript