Ongoing digital transformation, the war for the best talents, Covid-19, its associated “Great Resignation”; the job market is undergoing fundamental change – including the trend among professionals to move from permanent employment to self-employment. It is therefore becoming increasingly necessary for companies to open up to the possibility of also relying on freelancers – especially in the IT sector. In this way they can succeed in the long term in not being left behind by other companies and in remaining competitive in the future.
Flexible working models open up a much larger talent pool
A secure job as an argument for permanent employment was attractive years ago. Now it’s giving way to the requirement for maximum flexibility. That’s because Covid-19 has shown us that even supposedly secure jobs can disappear overnight. But it’s not just catastrophes like a pandemic that mean upheavals in the world of work; technological developments also require rethinking. Digitization and exponential advances in technology are not only changing the requirements for the skills needed by individuals, but are also enabling new, more flexible ways of working together, as it is now possible to work from anywhere. In addition, Covid-19 has also led many to grapple with how well (or poorly) their current job aligns with their medium to long-term plans and goals. The result is mass resignations, a trend now known as “The Great Resignation.” This is different for tech freelancers: Even though they had to experience some setbacks at the beginning of the pandemic, in a study by IDG Researches, almost 88% said they would rather not accept a permanent position, for reasons of livelihood security or because of legal imponderables. The same study states that 62% of IT professionals and just under 61% of companies surveyed also agreed with the statement “Corona has made hiring remote IT professionals socially acceptable!”. Also more than three out of four companies have used external IT professionals in the last 12 months – that’s five percentage points more than in the 2019 survey.
The bottom line is that the dynamics in the world of work mean that self-employment is an attractive work model for many and the pool of freelancers continues to grow. Those willing to work remotely with IT professionals have access to a significantly larger pool of talent from around the world. Companies should therefore open up to the opportunities that the increased integration of freelancers brings with it.
Hybrid tech teams as a future model for companies
According to a Harvard Business School report, 90% of executives consider flexible talent to be of great importance when it comes to their company’s future competitive advantage. No wonder, considering that it takes an average of six months to fill a vacant IT position. Forced by the baby boomer generation, who are slowly but surely moving towards retirement, the pressure on companies to find and attract (the right) talent is steadily increasing. According to Bitkom, there is a shortage of 96,000 skilled workers in Germany in particular in the IT sector this year – that’s 12% more than last year. This circumstance has led to a real escalation in salaries for tech talent. The combination of the battle for the best professionals and rising wages has led to a shift in the balance of power in the labor market. Companies can’t wait for tech talent to come knocking on their door. Instead, they must adapt to the new conditions in the labor market and make an active effort to find and retain the right employees.
Project-based work with freelancers has several advantages. Companies can fill vacant positions quickly and flexibly within a few days with freelancers and, with their support, move forward with time-critical projects without losing valuable time. In parallel, the tedious search for an internal permanent employee can be pursued. In this way, high opportunity costs arising from project delays can be avoided.
In addition, working with freelancers for certain projects also offers advantages for the company’s own employees. Due to the combination of existing knowledge and new perspectives brought by external employees, solutions can be developed more quickly and a broader range of work can be covered. It is no coincidence that most freelancers are experts in their field and can help to create new offerings cost-effectively thanks to their high level of specialization and speed. Companies can scale very successfully with the help of hybrid teams of IT freelancers and their own permanent employees and increase their productivity and innovation enormously. Another point employers should consider is that highly qualified employees who decide to switch from permanent employment to freelancing may remain with the company if it opens up to new working models. Given how difficult it is to find the right talent, companies should consider all options for retaining their best talent.
So what are you waiting for? Take advantage of the benefits that the increased involvement of tech freelancers brings – for the sake of your company’s future viability.
