freelance survey 2012
TRANSCRIPT
FREELANCE SURVEY2012
Presentation1
A word on the methodology used
How the market for freelancers looks like
What is the freelancer facing? The freelancer perspective
Freelancers and Service Providers, a Win-Win scenario?
Conclusions
Content
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What is a Freelancer?
We define a freelancer as an interim manager, or expertworking on a temporary and
independent basis with a company or organization.
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Freelance Survey
Online March - April
2012
500 respondents
Joint initiative
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Fast Moving
Fin
an
ce, B
an
kin
g &
In
su
ran
ce
Automotive, Transport & Logistics
IT &
Tele
co
m
Oth
er
Healthcare - ICT
Utilities Public
Med
ia
Travel, Tourism & HoReCaN
on
pro
fit
Bio
tech
no
log
y
Education
Creative, Art, Culture, Photography, etc
Who were these 500 Freelancers?Industries
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Finance & AccountingProject Management
Marketin
g &
Co
mm
un
icatio
n
ICT
HR
& T
rain
ing
Sale
s
Administration Operations: Production, manufacturing & quality
Other
Procurement, supply chain & logistics
Customer ServiceLegal
R&
D &
En
gin
eerin
g
Who were these 500 Freelancers?Activity domains
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2%
22%
44%
25%
7%
26-30
31-40
41-50
51-60
61-72
7%
14%
14%
12%
9%
6%
6%
6%
3%
1%
4%
19%
0
1
2
3
4
5
6
7
8
9
10
>10
Age Experience
Who were these 500 Freelancers?Age & Experience
N = 343N = 198
55%
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N = 380
Who were these 500 Freelancers?Gender
79%
21%
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9
13% 24%
41%
12%
4%
2%
4%
5%
31%
13%
60%
23%Abroad
Who were these 500 Freelancers?Regions of activity
N = 372
“Golden Triangle”
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THE MARKET FOR FREELANCE ASSIGNMENTS
How the market for freelancers looks like
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N = 418
2012
After some challenging years, the freelancers anticipate a positive trend
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N = 64N = 422
85%
8%
4%
1%
2%
15%
Did you find an assignment during last 6 months of 2011?
I didn't find an assignment
It was my choice not to have an
assignment
I'm a freelancer only since 2012
Other
Yes No
Chargeability over the last 6 months
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55% of freelancers feel and expect higher competition
2009 2010 H1 - 2011 H2 - 2011 H1 - 2012 H2 - 2012
Competition is increasing
N = 407
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N = 398
2009 2010 H1 - 2011 H2 - 2011 H1 - 2012 H2 - 2012
Fee evolution is negative
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10% 5% 8% 12%
65%
55% 44%23%
21%
28%32%
37%
4%6%
6%21%
5%5% 5%4% 2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Bachelor or
High school
short type
Master or
High school
long type or
university
Post
university
PHD/ MBA
Impact of education on fee
300-499 500-699 700-899
900-1099 1100-1299 1300-1500
N = 295N = 301
N = 282
550
600
650
700
750
31-40 41-50 51-60 61-72
Impact of age on fee
Average fee Median Fee
711
640
500
550
600
650
700
750
Man Woman
Impact of gender on fee
Average Fee Median Fee
Age, Gender & Education are factors that influence the daily fee
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N = 334 N = 340
N = 340N = 309
600
620
640
660
680
700
720
740
0-3
months
4-6
months
7-12
months
1-2 years More than
2 years
Average Fee per Assignment Duration
600
650
700
750
2 3 4 5
Average rate per billable days per week
747 727 714 709 705 705 704 698 698 687 673 663
0100200300400500600700800
Impact of sector on fee
Average Fee
Median Fee
020406080100120140
550
600
650
700
750
800
850
Impact of roles on fee
Average Fee
Count
Median Fee
The assignment role and sector also have impact
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What is the freelancer facing?The freelancer perspective
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N = 496
Once a freelancer, ‘always’ a freelancer
61% would not return to a payroll
job
Only 3% considers returning to a
payroll job
Remarkably, those considering to return don’t match the ones that became freelancer through restructuring
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N = 496N = 488
What drives and what holds you back?
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- Older Freelancers work less days per week than their younger peers.- Only 27% of 60+ work 5 days a week
N = 362
1%
5%
16%
28%
49%
1%
0% 10% 20% 30% 40% 50%
1
2
3
4
5
6
Billable days per week
For over 50%, the 5-day week is not the standard
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N = 375
The own network preferred and most efficient sourcing channel, closely followed by service providers
-25
-20
-15
-10
-5
0
5
Own network
(including prior
clients)
Service providers Direct contact
with current
clients
Online sites for
searching
freelance jobs
Social media
Net Promoter Score – Effectiveness Channel
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N = 490
Over 1/4th of Freelancers has more than 1 assignment
1/4th of Freelancers has extra remunerated activities
75%
25%
No
Yes
N = 401
Common extra activities:• Accounting• Teaching/Coaching• Directorship• Sales
45%
26%
29%One
Multiple
None
How to mitigate the Financial uncertainty
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N = 326
This means that on average, a freelancer is billable for 81%Partially, this is an own choice.
0%
5%
10%
15%
20%
25%
30%
0 1 2 3 4 5 6 7 >7
Average length in months in between assignments
Finding assignments: the average length between assignments is 2,28 months
50%
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The ideal assignment length is 7-12 months (seconded by assignments of 1-2 years)
13%
20%
32%
22%
13%9%
20%
35%31%
6%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0-3 months 4-6 months 7-12
months
1-2 years More than 2
years
Assignment Duration
average duration (N = 406)
ideal duration (N = 409)
Freelancers want and get assignments of 7 months to 2 years
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Freelancers and Service Providers, a Win-Win scenario?
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N = 393
82%
18%
Do you have experience in working withService Providers?
Yes
No 43%
57%
Would you consider to work via 1 service provider exclusively?
N = 319
Facts & Figures
35% of ALL freelancers consider working
exclusively
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N = 310 N = 302
12%7%
22% 20%10%
28%
25%
32% 38% 58%
15%
3%
8%4%
10%37%
47%
33%25%
19%
8%19%
7%13%
4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Match
makers
Expertise
domain
experts
Umbrella
agents
Quality
agents
Big 4
Which type of Service Provider do you know andworked with?
I don’t know this type
I know the type but never worked with them
I know the type but I’m not interested in working with them
I sometimes work with them
I always work with them
6%
5%
16%
41%
6%
26%
0% 20% 40%
Big 4
None
Match makers
Expertise domain
experts
Umbrella agents
Quality agents
For which type of agent are you most likelywilling to work in the future?
Facts & Figures: Who is the preferred partner?
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33%29%
24%
11%
2%0%
5%
10%
15%
20%
25%
30%
35%
I don't like
they take a
margin on
my fee
I don't see
their added
value
I want to
remain
independent
Did not
know that
existed
Other
Why wouldn’t you work with a Service Provider?
N = 65
* 65 out of the 500 respondentsanswered this question
7 16 5 16
157
7 3 8 80
20
40
60
80
100
120
140
160
180
Bad
com
munic
ation/r
ela
tionship
Bad p
rofile
vs a
ssig
nm
ent
matc
h
Body S
hoppin
g
Com
petition w
ith o
ther
FL/I
nte
rnal Consultants
Hig
h inte
rmedia
ry m
arg
in
Lack o
f fo
llow
-
up/s
upport
/feedback
Low
conta
ct
with e
nd-c
lient
/
purp
ose o
f th
e a
ssig
nem
ent
Short
term
ism
Tre
atm
ent
as s
ubord
inate
iso p
art
ner
Disadvantages of SP's
N = 258
Hate-Love relation: What FL don’t like about SP’s
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N = 315 N = 308
5% 2% 4% 2% 3%
11%
5%
12%
22%
16% 17%
0%
5%
10%
15%
20%
25%
0 1 2 3 4 5 6 7 8 9 10
Loyalty from 0 (not loyal) to 10 (absolutely loyal)
Loyalty FL towards service providers
8%6%
8% 8%5%
14%
9%
15%13%
7% 8%
0%
5%
10%
15%
20%
0 1 2 3 4 5 6 7 8 9 10
Loyalty from 0 (not loyal) to 10 (absolutely loyal)
Loyalty service providers towards FL
Average loyalty of Freelancers towards Service Providers; 7,92
Average loyalty of Service Providers towards Freelancers; 6,34 >
Hate-Love relation: Loyalty
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N = 417
55%
21%14% 7%
2%0%
10%
20%
30%
40%
50%
60%
I will contact a
diversity of service
providers
I will stay working a
a freelancer without
commiting to a
service provider
I will commit to one
service provider
I will try to get a
permanent position
Other
What will be your most likely strategy in times of crisis?
Hate-Love relation: But in times of crisis
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N = 363
68%
52% 52% 50%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Sharing
knowledge
Organizing
network events
Support during
assignments
Organizing
trainings
Main actions that Service Providers can take or developfurther to optimize your role as Freelancer
Freelancers have clear expectations
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N = 138
Guara
nte
ed n
um
ber
of
charg
eable
days
Adm
inis
trative a
ssis
tance
Netw
ork
possib
ilitie
s
Support
duri
ng
assig
nm
ents
Tra
inin
g p
ossib
ilitie
s
Lead g
enera
tion f
ees
Earn
ing o
f quality
label:
refe
rences,,
,
Access t
o c
om
pany
know
ledge
Primary motivators to work through SP’s
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56%
45%
31%
22%
15%
0%
10%
20%
30%
40%
50%
60%
Expertise
domain experts
Quality agents Match makers Big 4 Umbrella agents
Willingness to work with current SP
N = 267
Freelancers find this with?
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Conclusions on freelancers
Main motivators: autonomy & variation –and not fee or flexibility
Freelancers are aware that market is getting more competitive
Gender inequality in fees
Social media: present, but not as anassignment finder
Higher education resultsin higher fees
Important sourcingchannels: own network& service providers
Preferred type of service provider: expertise domain experts
Concerns towardsservice providers: margin, addedvalue, loyalty
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Conclusions on service providers
Finding the right assignments
Financial compensations
Expertise development
Networking
ONCE A FREELANCER, ALWAYS A FREELANCER