YOUR REGION: United States

Tag: Freelancer

77% of US workers impacted by recent layoffs plan to switch industries

Laid-off US workers turn to freelancing

According to a survey by talent platform Fiverr, 77% of US workers who were affected by recent layoffs are planning to explore new industries. The report also revealed that many of these laid-off workers are interested in pursuing freelance work, in addition to changing careers.

Fiverr CEO Micha Kaufman explained that the economic downturn, especially in the tech sector, has prompted a “talent migration” as skilled workers reconsider their career priorities and seek alternative work opportunities. Freelancing has become an appealing option for many laid-off workers who want more control over their careers, as observed on Fiverr’s platform.

The survey found that 33% of respondents plan to freelance while looking for a new job, and 34% plan to maintain a side hustle even after returning to full-time work. Sign-ups for freelancers providing programming and tech services notably increased in January 2023 compared to the previous year, following layoffs in the tech sector.

The report also indicated that 32% of respondents who did not want to return to full-time employment cited a lack of trust, while 56% appreciated the flexibility of not having a 9-5 job.

Fiverr partnered with Censuswide to conduct the survey among 501 white-collar or office workers in the US who reported being laid off in the last three months. The data was collected between March 8 and March 20.

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82% more people are starting side hustles In 2023

Top ten side hustles revealed

Google searches for side hustles have increased by 83% in the last year. In the UK, over 18,000 monthly searches were recorded on average.  With the cost-of-living crisis impacting millions across the UK, it is no surprise that people are turning to side hustles in addition to their regular salaries to make ends meet.

By looking at data from the freelance platform Fiverr, Bionic has revealed that some freelancers earn more than £150,000 by starting businesses at home. Their analysis looked at how much money top-selling freelancers were making in various industries. They also looked at minimum project charges and the number of orders delivered by each top-selling freelancer to provide an overall ranking of the most profitable side hustles.

In the UK, the top ten side hustles, with their average earnings, are:

  1. Creating Web Banners: £739,526
  2. Social Media Design: £605,016
  3. Web Design: £546,403
  4. Audiobook Production: £545,133
  5. E-Commerce Product Videos: £436,021
  6. Catalogue Design: £419,580
  7. Logo Design: £344,245
  8. Book and eBook Writing:  £320,000
  9. App Design: £308,513
  10. E-commerce Development: £294,833

The study also revealed that:

  • Overall, graphic design is the most profitable industry to conduct a side hustle
  • The UK is the best country to earn money from Writing & Translation services
  • On average, top-selling freelancers in the UK are making £97,000 from side hustles
  • Globally, the most profitable side hustle is 3D Production Animation. Top freelancers in this area are making £569,000 on average
  • This highest sum made in any side hustle in the UK was by a freelancer in the UK who made over £3m on Audiobook Production.

Les Roberts, Content Manager at Bionic, commented: “While the data we have here showcases plenty of unique services on offer, the most important thing it highlights is just how many people now rely on freelance work to supplement their income.

“This growing freelance economy isn’t likely to slow down until wages catch up to inflation, which could be well into 2023 or beyond. But since it seems to work for households and businesses alike, we might see people adjust to this new way of living.

“This could in turn make things like the four-day work week more feasible for the UK. Small businesses are the backbone of the UK economy, but it’s entirely possible that side hustles become the new normal even after the economy recovers.”

The full study can be found here: https://bionic.co.uk/blog/most-profitable-side-hustles/

 

 

 

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Freelancers face delays as businesses battle cashflow

Late payments from suppliers and payroll system issues cited as reasons for delays

Despite contract work being on the rise since the pandemic, freelancers often wait three times longer to get paid than full-time staff who earn a monthly salary. Research shows that this is due to firms struggling with cash flow and payroll issues.

The survey, conducted by embedded finance and payment solutions provider, Sonovate, showed that 53% of all small and medium-sized businesses (SMEs) use contractors. However, this number increased to 81% when looking only at medium-sized businesses.

More than a quarter (27%) of SMEs said it takes them over 90 days to pay their contract staff. This figure increases to 37% among medium-sized businesses (50 to 249 employees), even though they are expected to have more predictable cash flow and should be able to make more timeous payments.

Five hundred senior business decision makers were surveyed, and it was discovered that 28% cited cash flow as one of the main reasons for slow payments (rising to 33% among mid-sized enterprises). It was also found that 62% believed that these cashflow issues were caused by the knock-on effect of late payments from their suppliers and customers. Twenty-eight percent said that issues with payroll systems stopped them from paying contract workers on time.

Regardless of the clear need for good contractors, 39% agreed that failure to pay timeously might result in missing out on quality talent. A further 24% admitted they had lost contract workers as they couldn’t pay them on time.

Richard Prime, co-founder and co-CEO at Sonovate, said: “Despite the last few years accelerating the number of workers going freelance or contracting, they are consistently being paid late which is not sustainable for many people –  particularly at the moment.”

“We know that contract workers are the future of the UK’s workforce, but with the cost-of-living crisis front of mind, 90 days is just absurdly long to wait for payment. Against the backdrop of this crisis, it is paramount that businesses have access to solutions that support them to offer fairer and swifter payment across the workforce supply chain.”

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31% of businesses fail to pay freelancers on time

55% of businesses make use of the contract workforce

Based on a survey of over 4,500 people, Sonovate’s Future World of Work report reveals that freelance and contract work is on the rise post-pandemic, but 31% of SMEs routinely pay them late; with more than half of those freelancers and contractors stating that late payments impact their ability to pay their bills on time.

While small and medium sized SME owners are keen to attract contractor workers to address skills gaps failing to pay them on time could lead to them missing out on talent opportunities.

The survey revealed that 74% of SMEs said they see the benefits of hiring freelance or contract workers for specialist support over having to invest in a permanent workforce.

Over 40% of SMEs that use freelance labour admitted they often wait until the last day the payment is due before paying contractors. However, this isn’t necessarily the business owners’ fault with half (50%) saying that late payments from clients or customers impact their ability to pay their workforce on time. 

Sonovate’s research shows that over half (55%) of SMEs that use freelance labour have witnessed a sharp increase in the number of people looking for temporary or contract work since the start of the pandemic with nearly four in ten workers (36%) saying they would like to move to a more flexible way of working but are worried about the uncertainty of pay. Over half (56%) said they would only work for a company which had a track record of paying wages on time and 64% think the Government needs to do more to enforce the prompt payment of invoices. Almost half of freelancers (48%) refuse to continue to work with businesses that are late to pay them. 

Richard Prime, co-founder and co-CEO at Sonovate, commented: “The Report shows us that freelance and contract workers have spiked in popularity since the start of the pandemic, with the crisis opening our eyes to new ways of working.” 

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Pandemic fuels strong demand for freelancers

Businesses turned to freelancers most often for help with technology, digital marketing and design tasks over the past year, according to new research.

A survey of 15,000 freelancers by freelance jobs marketplace PeoplePerHour found freelancers across these three areas had been most in demand during the past 12 months. More specifically, web development, content writing and graphic design topped the list of tasks outsourced during the pandemic.

Xenios Thrasyvoulou, Founder and CEO of PeoplePerHour, said: “During the past 12 months, every aspect of normal life has changed, from how you do your shopping, to how you run your business.

“Many businesses have had to adapt and move online requiring specific skills and competencies at a given point in time, which makes using freelancers particularly attractive for many companies.”

In particular, the research found that many businesses had set up websites or ecommerce marketplaces for the first time over the past year, leading to web development, app development and coding skills becoming even more in demand than they were previously.

Companies had also increased their use of digital channels over the past year, seeking help from freelancers to write content and manage social media campaigns.

Graphic designers were also in high demand as businesses looked to boost their online presence with new logos, online brochures, posters and other creative material.

And due to the shift to home working and the downturn in some industries, some businesses had either cut back on staff or placed them on furlough, so turned to freelancers for business support such as sales or virtual assistance.

Thrasyvoulou said the strong demand for freelancers was especially welcome as many had been badly affected by the pandemic. “Small businesses and the self-employed have been some of the hardest-hit sectors, with less government support than those who are in full-time employment.”

Photo courtesy of Canva.com

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