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Workers on Tap
HR Star
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
What is a Freelancer?
• Independently finds work
• Works project by project for many companies
• Sells services by the hour/fee
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
What makes an “employee”?
Three characteristics to determine - employee or
independent worker:
• Behavioral Control
• Financial Control
• Type of relationship
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
Face of the New Workforce
• 53 million Americans are freelancing
• Contribute $715 billion into economy
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
Freelance Misconceptions
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
Why Should You Care?
• Businesses will need to
adapt
• That means YOU
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
Why Should You Care?
• “Uncollared” workers: future of the middle class
• Cultural and professional shift is NOW
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
How Freelancing Has Grown
• Bounce back from
the Great Recession
• Market Uncertainty
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
How Freelancing Has Grown
• Technological Advancements
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
How Freelancing Has Grown
• Freelancing was
born in industries like
web development
and graphic design
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
How Freelancing Has Grown
• Freelancing has grown in industries such as:
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
How Freelancing Has Grown
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
Freelancer Benefits
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
The New American Workforce
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
Freelancer Benefits
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
Freelancer Benefits
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
Freelancer Benefits
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
Company Benefits
Reduce Costs
• Healthcare benefits
• Payroll Costs
• Hire on-demand
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
Company Benefits
• Access specialists
around the globe
• No asset risks
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
Company Benefits
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
Find and Manage Freelancers
Freelance Management Systems (FMS)
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
Find and Manage Freelancers
Freelance Management Systems (FMS)
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
Find and Manage Freelancers
• Official freelance policy
• Project budget
• Scope of work
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
Pitfalls of Freelance
Digital Serfdom:
• Employers have bought our time
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
Pitfalls of Freelance
Digital Serfdom:
• Loss of
security of
information
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
Pitfalls of Freelance
Lack of Control:
• Decentralized
work
• Understanding
the business
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
Pitfalls of Freelance
Lack of job and financial security
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
Effect on Corporations
New
• Competitors
• Technology
• Policies
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
Effect on Corporations
• Are freelancers employees?
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
Act Now
• Assess your freelance
opportunities
• Create a plan
© 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential
Questions?
Aaron Grossman
Alliancesolutionsgrp.com
grossman@alliancesolutionsgrp.com

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Workers on Tap

  • 2. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential What is a Freelancer? • Independently finds work • Works project by project for many companies • Sells services by the hour/fee
  • 3. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential What makes an “employee”? Three characteristics to determine - employee or independent worker: • Behavioral Control • Financial Control • Type of relationship
  • 4. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential Face of the New Workforce • 53 million Americans are freelancing • Contribute $715 billion into economy
  • 5. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential Freelance Misconceptions
  • 6. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential Why Should You Care? • Businesses will need to adapt • That means YOU
  • 7. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential Why Should You Care? • “Uncollared” workers: future of the middle class • Cultural and professional shift is NOW
  • 8. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential How Freelancing Has Grown • Bounce back from the Great Recession • Market Uncertainty
  • 9. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential How Freelancing Has Grown • Technological Advancements
  • 10. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential How Freelancing Has Grown • Freelancing was born in industries like web development and graphic design
  • 11. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential How Freelancing Has Grown • Freelancing has grown in industries such as:
  • 12. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential How Freelancing Has Grown
  • 13. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential Freelancer Benefits
  • 14. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential The New American Workforce
  • 15. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential Freelancer Benefits
  • 16. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential Freelancer Benefits
  • 17. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential Freelancer Benefits
  • 18. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential Company Benefits Reduce Costs • Healthcare benefits • Payroll Costs • Hire on-demand
  • 19. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential Company Benefits • Access specialists around the globe • No asset risks
  • 20. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential Company Benefits
  • 21. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential Find and Manage Freelancers Freelance Management Systems (FMS)
  • 22. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential Find and Manage Freelancers Freelance Management Systems (FMS)
  • 23. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential Find and Manage Freelancers • Official freelance policy • Project budget • Scope of work
  • 24. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential Pitfalls of Freelance Digital Serfdom: • Employers have bought our time
  • 25. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential Pitfalls of Freelance Digital Serfdom: • Loss of security of information
  • 26. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential Pitfalls of Freelance Lack of Control: • Decentralized work • Understanding the business
  • 27. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential Pitfalls of Freelance Lack of job and financial security
  • 28. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential Effect on Corporations New • Competitors • Technology • Policies
  • 29. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential Effect on Corporations • Are freelancers employees?
  • 30. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential Act Now • Assess your freelance opportunities • Create a plan
  • 31. © 2001 – 2014 Alliance Solutions Group, LLC | Proprietary and Confidential Questions? Aaron Grossman Alliancesolutionsgrp.com grossman@alliancesolutionsgrp.com

Editor's Notes

  1. A freelancer is considered a person who: Independently finds their own work Works project by project for multiple companies Sells their services by the hour or fee arrangement rather than on a salaried basis Not yet considered an “employee” by law Independent contractors are still W-2 employees of some form, freelancers work for themselves as 1099 workers
  2. Behavioral Control covers facts that show whether the business has a right to direct or control how the work is done through instructions, training or other means. Financial Control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker's job. Type of Relationship factor relates to how the workers and the business owner perceive their relationship. IRS info: http://www.irs.gov/uac/Employee-vs.-Independent-Contractor-%E2%80%93-Seven-Tips-for-Business-Owners Misclassification of independent workers can result in costly bills and penalties by law.
  3. Right between staff and temporary workers Freelance workers make up 34% of the workforce, or 53,000,000 Americans One-third of these are millennials They contribute an estimated $715 billion in freelance earnings to our economy In just 5 years, half of employees expected to be independent workers
  4. Freelance might not be this bad, but there are a lot of misconceptions around it
  5. Businesses will need to adapt This trend is NOT going away Twice as many freelancers have seen an increase in demand, rather than a decrease Personal anecdote why this matters. Our company has used: Graphic design, web design, web programming, and other jobs with freelancers You could miss top talent if ignore this community
  6. This is the future for the middle class because they are the ones most prevalently turning to freelancing for the better benefits than their middle class jobs offer which we will address later on…
  7. Bounce back from The Great Recession caused: Market Uncertainty- employers still have same needs as always Hesitant to hire full-time due to debt and interest rates Able to hire people with the skills they need “on-demand” instead
  8. Technology has become cheaper, more accessible and a powerful work tool Also mobile and flexible Big push to freelance workforce 69% of freelancers said technology has made it easier to find freelance work (Freelancers Union)
  9. Freelancing started in industries such as: Web development Graphic design Post-recession growth and using human capital as an asset has pushed freelancing
  10. Freelancing recently has grown in industries such as: Transportation – Uber Information Technology – cloud services Servers in cloud provide virtual services Instacart hires freelancers to drive and deliver groceries to customers who order online and pay through Apple Pay Care.com was a start-up designed to hire freelance caregivers and provide an online marketplace for them to find families that need cared for
  11. Affordable Care Act: big push for freelancers Don’t need company healthcare (traditionally NEEDED to work at companies for benefits) Took away primary benefit of company job and made it available Purchase own insurance at exchange Creates a portable workforce
  12. Don’t need company health insurance Access to cheap computing power and software Can perform same jobs as trained professionals Frequently earn more money than in traditional job- in fact, the top two driving forces of freelancing are money and flexibility
  13. Work flexibility: work when/where they want Workers engaged and satisfied Unlike traditional 9-5 desk jobs Independence – no supervisor
  14. -personal anecdote In 2012 husband and wife Greg and holly Johnson created a blog and advice site for saving money, called Club Thrifty. Holly had previously worked for a mortuary and made less than $40,000/year. Tired of the work, she began freelance writing on the side for a year in addition to her full-time job, to build a client base. She was able to build her client base through the internet on finance websites and finding areas to write in her niche – higher education. After that year passed, she left her full-time job to start freelancing full-time. Since they began their site 3 years ago, she has more than quadrupled her income. She now works remotely from home, but frequently travels with her husband, decides when and how much she wants to work, and can take off all the time she wants. Another huge benefit for her has been being more present as a parent to her 2 children. This is the success story of just one freelancer who was able to leave a job they no longer had a passion for, and bettered their life through freelancing.
  15. -personal anecdote Simon Carter and his girlfriend, Emily, had the travel bug at 23 and couldn’t imagine staying in one place for a 9-5 job. They quickly found Elance where Simon improved his skills as a web developer and found the work platform perfect for building out his portfolio and earning money while traveling. Emily then joined the service as a graphic designer and within months the couple realized their skills were more marketable together and launched Greenbox Designs, a web development and design company. Since joining the online workforce, Simon and Emily have lived in Thailand, Spain, Indonesia and South Africa finding work on Elance to supplement their income while at the same time hiring online professionals on the platform to help with project flux.
  16. No health benefits required No payroll costs Hire on-demand rather than full-time worker
  17. Access specialists all around the world Freelancers use own assets Ex: Uber drivers use their own cars Less risk for companies
  18. Vivino- World’s most downloaded wine app for sharing photos, ratings and discussing wine with likeminded people Vivino created by developers who used Elance to find freelancers - hired mobile app developers, data-base builders, and translators for global expansion Using freelancers, Vivino went from a Copenhagen startup to an iTunes sensation
  19. Freelance Management Systems (FMS) Find, verify, pay and rate contingent workers FMS mixes the power of online staffing with HR tools
  20. Directly engage with talent on a platform as well as management functions/compliance solutions – FMS less used for sourcing and more for management (curation, worker pool, compliance) Online Staffing is typically direct “one-off” engagement between buyer and worker, FMS managed under enterprise’s rule and system of controls These Systems expected to become the norm
  21. Freelance policies, budgets and scope of work need put in place to avoid unlawful employment and mislabeled workers This also creates clear expectation for worker, projects will go smoother
  22. Digital Serfdom: No longer 9-5 job but this can be good and bad Work v. Personal time blurred Employers have bought our time
  23. Transfer of information needs to be secure Can your information be stolen? Are your processes and data safe? International workers aren’t under by US laws
  24. Lack of control Work being done outside your visibility/on the outside Do these outside workers understand your business?
  25. Workers get more flexibility but no: Retirement plans Health benefits Long-term stability
  26. New competitors- cheap services challenging your business model Keep up with speed of technology More workers turning to freelancing- 80% of non-freelancers would do work outside their primary job to make more money Figure out how to handle freelance workers Hire, pay, benefits, protections, etc.
  27. Federal gov. currently ruling if these workers are “employees” CA ruling said YES to Uber driver being an employee- the driver was not engaged in occupations distinct from that of the business, and though hours are chosen by the worker, Uber is still in control of the grand operations. Uber has appealed. If yes, it will raise cost of services/legal concerns Freelance model would need changes
  28. Your company should be assessing freelance opportunities starting now Recognize benefits and drawbacks Have a plan in place to hire and manage freelance workers