In today’s post-pandemic world, freelancing has become a preferred work mode for many professionals worldwide, making a significant shift in the labor market. According to a study by the Upwork Research Institute, an estimated 64 million Americans - representing 38% of the U.S. workforce - engaged in freelance work last year. This marks an increase of 4 million people from 2022.
As technology evolves and workforce preferences shift, the freelance economy is expected to continue growing. Companies have adopted hybrid models that combine full-time employees with a flexible, freelance workforce to stay competitive and agile.
Yet, companies managing freelancers have faced challenges with the process and planning of an independent workforce, making it a time-consuming, resource-intensive job. For years, large corporations have relied on Peoplesoft, SAP and other HR automation systems, but these systems aren’t equipped to manage non-employees.
Enter freelance management software. Freelance Management Systems (FMS) offer businesses a centralized platform for managing hiring, projects, and payroll related to freelancers. These systems oversee the entire freelancer lifecycle, from locating and hiring freelancers to evaluating their performance. FMS software includes robust tools for screening and hiring freelancers, onboarding solutions, work collaborations management, and organizing payments, expenses, and contracts. In addition, many FMSs curate their talent pools, ensuring employers don’t have to sift through countless profiles to find the right fit. By centralizing and automating various aspects of freelancer engagement, these systems help businesses save time, reduce costs, and ensure high-quality project outcomes.
As the freelancer economy grows, so will its players. According to the latest Freelance Platforms Market, the market size was valued at $110 Million in 2023 and is projected to reach $355 Million by 2031. With the rise of an independent workforce, expect the adoption rate of FMSs to increase as well, providing even more sophisticated tools and features to support this dynamic workforce.
The freelance market is now more dynamic than ever. If you manage freelancers, learn how leading companies are turning to Graphite and its seamless user platform to manage the employer-freelance relationship. See how it works here.
