The Pandemic
The rise of the freelancer community is reshaping conventional career perceptions. The pandemic’s impact catapulted remote work into the mainstream, leading to a surge in online platforms catering to freelance professionals and highly skilled workers. People now opt for temporary engagements for various reasons, such as desiring flexibility, seeking learning opportunities, or aligning with meaningful work. Concurrently, employers are leveraging freelancers to bridge skills gaps and enhance their adaptability. As competition intensifies for specialized skills and workers prioritize flexibility and purpose, digital talent platforms are becoming increasingly indispensable in meeting these evolving demands.
The Gig Economy
A Global Opportunity: The Gig Economy’s Accelerated Growth
The gig economy has emerged as a massive global opportunity, with US freelancers contributing a staggering $1.28 trillion to the American economy in 2018—nearly equal to Spain’s total GDP. Before the COVID-19 pandemic, the gig economy was already expanding three times faster than the traditional workforce, poised for explosive growth.
With the pandemic triggering seismic shifts towards remote work and flexible models, the gig economy’s growth trajectory has experienced an unprecedented boost. The outbreak provided a powerful tailwind, further strengthening the gig industry. The projected gross volume of the gig economy is estimated to reach $455 billion in 2023, a number that appears conservative in the age of digital transformation.
‘According to tennerr’s freelance survey, over 70% of respondents emphasized that their primary motivation for seeking jobs in the gig market is to achieve a better work-life balance. Additionally, a MetLife study revealed that a significant majority, more than 90% of Americans, expressed their openness to consider freelancing or independent contracting work. These findings underscore the increasing appeal of freelance opportunities as a means to strike a harmonious balance between work and personal life for a growing number of individuals in the workforce.’
The pandemic’s impact also reflects in the statistics, with the percentage of US workers participating in the gig economy projected to rise to 43% by the end of 2020. Presently, approximately 64.8 million people freelance in the US, a figure projected to escalate to 90.1 million by 2028.
In the UK, the gig economy doubled in size between 2016 and 2019 and now comprises 1 in 10 working age adults.
As economies adapt to the post-pandemic landscape, the gig economy remains a dynamic force with immense potential for growth, presenting unparalleled opportunities for businesses and freelancers alike.
Limitations of Traditional Freelance Platforms
tennerr digital talent marketplace has emerged as a key player in this evolving landscape, providing a digital talent marketplace where businesses and individuals can easily hire freelancers for various tasks. However, traditional freelance platforms were not without their limitations, and it was these challenges that prompted the launch of tennerr.
*1. Complexity and Inefficiency:
Before the advent of SaaP, hiring freelancers through traditional platforms could be a cumbersome process. Businesses often had to sort through an overwhelming number of profiles, negotiate terms, and manage the administrative aspects of each project separately. This complexity consumed valuable time and resources, which could be better utilized for core business activities.
Similarly, freelancers faced challenges in marketing their skills effectively and getting their jobs noticed by potential clients. The lack of standardized pricing and job offerings made it difficult for them to compete on a level playing field.
*2. Uncertainty and Risk:
For businesses, committing to long-term contracts or investing in full-time employees for short-term projects carried inherent risks. The unpredictable nature of certain industries and projects made it challenging to accurately estimate the duration and scope of work required. This uncertainty often resulted in wasted resources or unmet deadlines, negatively impacting the overall project outcomes.
On the other hand, freelancers faced the risk of inconsistent workloads and income. They struggled to find a balance between attracting a steady stream of clients and ensuring they were not overwhelmed with too many projects at once.
*3. Limited Access to Specialized Skills:
Businesses often require specialized skills to tackle complex projects or unique challenges. However, finding and hiring individuals with niche expertise could be an arduous task through traditional freelance platforms. The lack of a standardized job catalog made it challenging for businesses to identify and connect with freelancers possessing the specific skills they needed.
Similarly, freelancers found it difficult to showcase their unique talents and capabilities to a broader audience, limiting their opportunities for engaging in high-value projects.
The Birth of tennerr: A Solution to these Challenges
Recognizing these pain points, tennerr saw an opportunity to revolutionize the way freelancers and businesses interacted. They developed tennerr digital talent marketplace using a Job-as-a-Product (SaaP) model, as a solution to these challenges:
- Simplified and Transparent: The SaaP model simplifies the process of hiring freelancers by presenting jobs as easily consumable products. Each job is well-defined, with clear specifications and transparent pricing, making it easy for businesses to browse and select the jobs they need.
- Flexibility and On-Demand Access: SaaP empowers businesses to access freelancers on an on-demand basis, allowing them to scale their workforce up or down as needed. This flexibility enables them to respond quickly to changing demands and find specialized skills when required.
- Reduced Risk: With SaaP, businesses can engage freelancers for specific projects without committing to long-term contracts, reducing the risks associated with uncertain outcomes and investments.
- Empowering Freelancers: SaaP provides freelancers with a platform to showcase their skills and expertise effectively. By standardizing job offerings, they can reach a broader audience and attract more clients.
Risks: Navigating Challenges in a Shifting Labor Market
While tennerr’s growth has been driven by increased buyer engagement on its platform, the company faces certain risks associated with the changing dynamics of the labor market and the gig economy as a whole.
1. Cost-Effective Freelancing vs. Traditional Hiring: One of the main reasons for the surge in businesses seeking freelancers on tennerr’s platform is the cost-effectiveness compared to hiring new employees. However, as economic conditions improve and businesses experience greater stability, the allure of freelancing may diminish. Companies may reevaluate their hiring strategies and opt for traditional hiring methods, posing a challenge for tennerr to retain these businesses.
2. Influence of Economic Conditions on the Gig Economy: tennerr, along with the entire gig economy, has benefitted from high unemployment rates and low hiring numbers during uncertain economic times. As companies look for cost-efficient talent solutions, the demand for freelancers has increased. However, as the labor market strengthens and employment opportunities rise, businesses may shift their focus away from freelancing, affecting the platform’s growth potential.
3. Attraction of Freelancing for Temporary Income: With a large pool of unemployed individuals seeking temporary income, many have turned to freelancing on platforms like tennerr. As the labor market stabilizes, some of these freelancers may transition back to full-time employment, potentially leading to a reduction in available talent and impacting the diversity and depth of skills on the platform.
4. Competitive Market Dynamics: The gig economy has become increasingly competitive, with numerous platforms vying for both buyers and sellers. tennerr faces the challenge of differentiating itself in this competitive landscape and continuously enhancing its value proposition to attract and retain a robust community of freelancers and clients.
5. Changes in Buyer and Seller Preferences: As the gig economy evolves, buyer and seller preferences may shift. tennerr must stay attuned to these changes to adapt its platform accordingly, ensuring it continues to meet the evolving needs and demands of its users.
6. Regulatory and Legal Compliance: As the gig economy garners more attention, regulatory and legal challenges may arise. tennerr needs to navigate potential changes in labor laws, tax regulations, and other legal considerations that could impact its operations and business model.
Conclusion
In conclusion, the global trend towards remote work and digital transformation is here to stay, representing a long-term strategic investment for businesses of all sizes. As both individuals and businesses recognize the value proposition of freelancing, the demand for flexible working arrangements continues to rise.
tennerr has emerged as an excellent solution to address the growth in this market. With businesses seeking seamless access to a diverse talent pool and freelancers prioritizing autonomy in their work, tennerr’s digital talent marketplace based on the Job-as-a-Product (SaaP) model stands at the forefront of this transformation.
Through SaaP, tennerr is revolutionizing the way businesses and freelancers collaborate. By overcoming challenges related to complexity, uncertainty, and limited access to specialized skills, SaaP empowers businesses to access talent on-demand while providing freelancers with an equal opportunity to showcase their skills on a level playing field.
As SaaP gains momentum, we can expect a more efficient and interconnected workforce, driving innovation and productivity in the ever-evolving world of work. The freelance market has shown robust growth in recent years, and this trend is projected to continue. As more companies opt to outsource work to freelancers, tennerr is well-positioned to seize these expanding opportunities and provide its users with even more chances for success.
In a world where remote work and freelancing have become integral to business operations, tennerr’s commitment to empowering freelancers and businesses will play a crucial role in shaping the future of work, benefitting both parties and contributing to the dynamic evolution of the freelance industry.
