According to a new report released by Ceridian, a human capital management software firm, 62% of global executives believe that freelancers, or gig workers, will substantially replace full-time employees within the next five years. The findings also shed some light on how the post-pandemic workplace may be configured, with many executives maintaining hybrid and remote work arrangements.
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By Glenn Laumeister, AllWork CEO
This past year, the Gig Economy has progressed way beyond drivers for Uber or Lyft, and now consists of a more diverse and skilled workforce. With the pandemic, more than ever, the Gig Economy has gone mainstream. This includes companies of all sizes. With the opportunity to take advantage of a flexible workforce, hiring managers are turning to freelancers for hard-to-fill roles or ongoing projects that require specific expertise. But where are they finding this talent?
While freelancer marketplaces like UpWork and Fivver have been increasing their revenue rapidly, with UpWork even reporting a 41% increase in Q1 of 2021, they actually account for only a small percentage of freelancer spend in the US. Together, UpWork and Fivver did $572 million in revenue in 2020. That may sound like a lot until you consider the larger picture. Last year, companies in the US spent an incredible $1.3 trillion on the gig workforce.
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