In the early 2000s, the creation of common service centers was a new tool to increase the operational efficiency of large-scale companies. The centralization of typical functions, such as accounting and HR in a specially created unit, reduced operating costs and optimized staff. If at first, such model caused skepticism, then over time, it became fashionable. The economic benefits of the common service centers are more than its limitations associated with their use. Today, most of the large companies operate on this operating model.
Freelance Replaces Common Service Centers
Nevertheless, the problem of increasing labor productivity and reducing costs is far from getting exhausted. And with the current competition, it even escalates. Now, the use of flexible operating models, in particular, the involvement of freelancers, is being considered as the most promising tool.
According to the American platform UpWork and the Union of Freelancers, more than half of the U.S. residents will switch to flexible employment by 2027.
How Freelancers Can Help
Given below are two examples of typical situations that are often encountered by our customers.
The contract department drinks tea with sweets for 15 working days. They anticipate that at the end of the month, they will renegotiate contracts with counter-parties. The management tries to evenly load employees with work and gives them telemarketing tasks. Specialists of the department are demotivated because they do not know how and do not want to sell.
When everyone is involved in dozens of initiatives to launch new products, the project office staff is overloaded. The efforts are then dispersed, and there is not enough working time for everything. This stalls the projects. Later, the management refuses to hire new people, by which the project does not take off.
These examples illustrate the classic attitude of employers towards employment, when the time is invested in work according to the schedule. Whereas new hiring of additional staff is initially regarded as low-cost. When deciding on the structure of a department, managers usually choose from two options: dismiss or leave. This approach leads to the fact that many teams are overloaded or inactive, which results in putting a stall on the projects.
The best solution may be to attract freelancers. This will solve several issues at once:
1. Increasing Labor Productivity
The company employs a limited number of employees to carry out daily tasks, and attracts freelancers during peak seasons.
2. Effective Implementation of Projects
Additional freelancers as well as specialists with narrow knowledge of the project should be involved to quickly move the project off the ground.
3. Lower Staff Costs
By transferring part of the tasks to freelancers, you can reduce the payroll. Savings are also achieved at direct costs, such as paying insurance, paying bonuses, expenses for office space, and paying for staff downtime.
4. Reducing Social Stress
While implementing the plan to reduce staff, some of the employees can be transferred to freelance with the possibility of engaging in targeted design tasks.
Advanced companies are already adjusting their HR strategy, increasing staff awareness of the benefits of working on freelance, and preparing the infrastructure for working with performers on the basis of contract.