Shaking an Industry White Paper


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How online freelancers allow
businesses to do more, and spend less

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Shaking an Industry White Paper

  1. 1. A Major Shake-Up In Hiring How online freelancers allow businesses to do more, and spend less.
  2. 2. If your feet are still firmly planted in thetraditional ways of employment, get ready Plummeting Tenures: Averagefor a jolt. time American workers now stays on the job: 4.5 years.Why? The tectonic plates of hiring are shiftingquickly (really quickly, if you haven’t noticed). Andno area of business is fluctuating faster than how Then came the first trembler: The Internet. Withcompanies find and hire workers today. the web came new business models (online and fast paced) and new ways of working (t-shirtsTruth be told, movers and shakers of all sizes and telecommuting). Suddenly Fortune 500-sizedare moving to a workforce built with online companies were hearing “Thanks but no thanks,”freelance talent. It’s a seismic shift that’s bringing from workers.boundless opportunity and economic boon tosavvy teams quick to embrace this online work Next came another earth-shaking revolution:revolution. Onsite freelance workers. Changing values and lifestyles led cubicle-wearyFirst, step back to see the origins of this shift. employees away from the 9-to-5. Liberated workers with high-demand skills were free to beFor decades, big businesses dominated the their own boss, set their own hours and workemployment world. The larger the company, the exclusively on projects that interest them most.larger the draw. If you had brand recognition and But again, the freelance revolution was limited tooffices everywhere, top workers beat a path to those near large clusters of businesses who wereyour door. hiring. Much of the work was on-site “contract” work through staffing agencies.“ nline freelancers allow us to O secure talent, virtually in real-time, 30% of today’s American workforce is to respond to our needs.” self-employed or part-time (42 million workers). The final aftershock: Online freelancers. Businesses today are now enjoy a shake-up being felt around the globe. It’s a powerful movement improving possibilities for workers and businesses alike. It’s the move to online freelance work – now made possible by technology innovation andMark Lee Ford online work platforms like Elance. With high-President, The Moneo Company speed internet, video conferencing and shared workrooms, jobs can now be done more efficiently and affordably – from anywhere. 2
  3. 3. Also, less overhead means more profitability. With Many large companies today report online freelancers you save money by avoiding 30% of their procurement spend is on the high cost of a desk, hot coffee and other contingent workers. expenses of on-site contingent workers. Online workers also understand that projects are often quick, so there are no requirements to book a certain amount of time with a physical freelancer.The benefits of online freelancers are numerous. This ensures you can staff-up and staff-down at a moment’s notice. Sophisticated time-tracking ofHere are a few reasons why, in record numbers, online collaboration firms like Elance also ensurebusinesses are hiring online freelance workers in efficiency and easy cost-tracking.lieu of full-time employees (or to supplement theircurrent staff): “ lance talent allows us to compete E with much larger groups.”1. Better tempo.Online freelancers give you better time-to-hire andtime-to-completion. They are, literally, standingby. There’s no longer the need to go through alengthy process of hiring, screening, interviewingand offer acceptance (or rejection).By going online you can post a job online andreceive job proposals from qualified candidates ina matter of minutes. Simply indicate that the jobneeds to start immediately – even that day – andtackle critical projects and new opportunities asthey arise. Dominique Molina President, Certified Tax Coach 84% of businesses surveyed report that hiring online gives them an advantage over competitors. 3. Better skills. Whatever project you have, it’s simple to go online and in minutes find the most-talented2. Better prices. freelancers – whether they’re located across the street or across the globe. Simply put, with onsiteSimilarly, with freelancers available around the freelancers you’re more-or-less limited to theglobe, you can compare multiple job proposals people in your immediate geographic area. Withto find a candidate delivering the best value. If online freelancers you can escape local limitationsyou’re a small business in San Francisco you can and chose the best worker for the job, from aget a mobile app developed without the high cost pool of millions.of Bay Area freelancers. You can also compare From technical and financial needs to marketingrates within any region. If one area has a high and design requirements, you’re certain to findconcentration of a certain skill, you’ll always find a qualified candidate online. If you’re in rurala wide variation in price between the candidates America and need a PHP programmer, medicaldepending on any number of factors. writer or voice-over talent, simply post a job online to receive job proposals. 3
  4. 4. 4. Better screening. According to a recent survey, theOnline workers have verified online profiles, top 3 advantages of onlineamounting to complete transparency for you and freelancers are: 1. Cost savings,your team. You can instantly view a candidate’swork portfolio, job ratings and recommendations 2. Faster-time-to-hire and 3. Accessfrom previous employers. No more educated to talent otherwise unavailable.guesses – always know the quality of yourfreelance workers before the job begins. 5. Better security.“ lance helps me find talent, manage E talent and most-importantly – When you choose online freelance workers, your grow my business.” information, personal belongings and money are safe and secure. Simply put the money in an escrow account, and when milestones are reached the funds are released to the worker. Similarly, companies such as Elance act as the “middle-man”, even negotiating between parties if a dispute arises, as well as handling all aspects of making payments – whether it’s physical checks or automatic deposits to bank accounts or processing services. Work produced online is also safer from unauthorized surveillance, as online freelancersRamon Ray are able to work in secure, password protectedEditor Technology Evangelist, Smallbiztechnology workrooms using the latest tools that protect your sensitive information and intellectual property.In-depth information in profiles can includeverified work history, verified location and contact 6. Better management.information, verified credentials, verified feedbackfrom prior clients, tested skills, resume, portfolio It’s simple to find, hire, manage and work withand work samples and even video introductions. online freelancers. Online job platforms such asThis information is free as well, as there are Elance simplify the entire process. In minutes youno additional costs for extensive background can post a job online and be choosing the rightverification. person for the job. Collaborating is simplified in shared workrooms that include video conferencing and other technology innovations. Elance also takes care of the many thorny details, such as handling invoices and making payments to contractors. Record and tax keeping is simplified too, thanks to online work innovations. Elance allows you to add Value Added Tax (VAT) if applicable, as well as indicate whether a contractor is a W2, 1099 or other category of contractor. You’re in control. 4
  5. 5. 7. Better work. each year. These statistics are only increasing, as the company is reporting 40% quarterly growth inBottom line, if all the points above were jobs posted and freelancer earnings.checked-off and the work was completed –but unsatisfactory, online freelancers wouldn’t With ground-breaking numbers like these, it’sbe the best option. But the simple fact is, only a matter of time before online freelance workfreelancers regularly do better work than your becomes the norm.full-time “staff” employees.Why? Online workers are notoriously cheerful “Virtual “gigging” will be a gameand eager to please clients. That’s because changer.” — Fox Businessthey’re specialists working when they want, onthe jobs they want, from wherever they want.The result is that online freelancers do Be prepared. Capitalize on an earth-shatteringconsistently awesome work. economic movement.Businesses constantly report how easy it is to getwork done with their online workers. The only thing preventing these figures from being even more impressive is that some businesses are slow to adapt to the shift from full-time on-site 69% of those questioned report employees to online freelance workers. But when being happier working as an online you see the multiple benefits of online teams, freelancer. 79% report being more you’ll understand why the resistance to change is productive than if a traditional eroding quickly. employee. About Elance. Elance is where people work differently. A pioneerGet ready for a changing landscape of in today’s online freelance revolution, Elance isproductivity and savings. the world’s leading platform for online work.Today’s global workforce is in the midst of an With a community of over 2 million testedexciting evolution to online work. This will allow and rated freelancers and 500,000+ activebusinesses to more-affordably and efficiently find businesses, Elance is the most-popular place toperfect workers to get the job done. find, hire and collaborate with top-skilled online freelancers. Those hiring on Elance range fromThe statistics speak volumes for the shift from savvy Fortune 500 companies and establishedtraditional employment to online freelance. Today businesses, to nimble start-ups and entrepreneursthere are over 2 million registered freelancers on looking to level the playing field by gaining fast andElance – the most-popular site for businesses simple access to the world’s top talent. With overto find, hire and collaborate with freelance 1 million jobs completed on Elance each year,talent. Those freelancers are kept busy by work ranges from quick one-person projects to500,000+ active businesses using Elance to entire teams tackling on-going assignments.tackle everything from one-off jobs with a singlefreelancer to ongoing projects being completed Headquartered in Mountain View, California andby a team of freelancers. Oslo, Norway, Elance is a privately-held company. For more information, visit put the online freelance boom into perspective,to-date freelancers on Elance have earned over$700 million and complete over 1 million jobs 5
  6. 6. 441 Logue Avenue Mountain View, CA 94043 Phone: +1 (650) 316-7500 Fax: +1 (650) 316-7501“WP 012013” © 2013 Elance, Inc. All Rights Reserved.