Aussie workers urged to make the most of shift from full-time to freelance

Employers are increasingly turning to freelancers and fractional workers – but this can benefit savvy workers, offering the potential to earn more money. Find out how.

Traditional work models are under threat, with employers turning to freelancers and fractional workers to avoid the expense of permanent staff.

But Australians are being urged to make the most of the hiring shift, which comes with the potential to earn more money and escape the ongoing threat of redundancy.

Seven in 10 Aussie businesses now use freelance or fractional workers, new research from freelance marketplace Fiverr shows.

They typically take on several roles simultaneously, each requiring them to work for a fraction of the time of a normal employee.

Fiverr found at least three in five businesses planned to increase their fractional workforce even further by 2025 – and experts agree the move to non-permanent staff looks set to stay.

Solid earnings

Economic pressures and an unstable marketplace have forced almost two-thirds of Australian businesses to shed staff over the last 12 months, citing cost-saving measures and a shift in business models, according to Fiverr.

Instead, companies are relying on the expertise of freelance and fractional workers, avoiding the long-term commitment and higher costs associated with permanent full-time positions.

Skilled workers with a solid reputation can be engaged by several organisations, easily matching – or even exceeding – what they previously earned as a permanent employee, says Fiverr chief marketing officer Matti Yahav.

“Earning potential as a fractional worker varies depending on expertise, demand and client base,’’ Yahav says.

“Typically, it can take several months to a year for fractional workers to achieve or exceed prior earnings, depending on how quickly they can secure and manage multiple projects effectively.

“But once established, many fractional workers enjoy a steady stream of income while enjoying the additional benefits of freelancing.’’

Yahav says the key to success is developing strong client relationships, with repeat customers and word-of-mouth essential for ongoing opportunities.

Workers must also invest in professional development and stay ahead of industry trends to maintain a competitive advantage over other professionals offering the same services, she says.

Tech worker Amy DeGroot says after becoming a freelancer, it took her six months to outearn what she was paid in her full-time role.

Planning for success

Tech worker Amy DeGroot was made redundant from her marketing role last year.

With so many other tech companies also laying off staff, she discovered her services were in high demand – just not in a full-time capacity.

With about 20 years of experience in senior management roles, DeGroot pivoted her job search to become a fractional chief marketing officer and now successfully works for multiple enterprises.

“It probably took me six months to be at the capacity where I was outearning what I was (paid) previously, so it’s been quite quick,’’ says DeGroot, who recently launched her fractional consulting business BrandAid.

“I’ve been very fortunate in being able to have consistent work but I definitely do plan for quieter periods.

“Even when I’m full up with clients I’m still going out and networking, doing business development and building a pipeline (of ongoing work).’’

‘Ticks the boxes’

Networking is key to obtaining enough fractional work to earn a decent income, says recruiter Jo Jakobs, professional talent director at Randstad.

She says workers with experience in senior management are the most likely to successfully transition to fractional employment, with new graduates lacking the depth of skills and expertise that employers are looking for.

Fractional workers with skills in marketing, accounting and auditing are in particular demand, she says.

With PwC, Telstra, AWS and TikTok among those to have recently announced redundancies, Jakobs says taking on multiple fractional roles could offer more job security than a permanent position with a single company.

“It’s hedging your bets, in a way,’’ she says.

“You’re down-risking your employment by having multiple irons in the fire – if one of those irons goes off, you have others that are still coming through so you are protecting yourself in that sense.’’

While income instability, especially in the early days, means fractional work will not suit everyone, Jakobs says it is worth investigating the opportunities on offer.

“A lot of people may not have heard about fractional work but I feel very strongly that it’s going to become the norm,’’ she says.

“Fractional work really ticks a range of boxes – there’s variety (of work), there’s learning experiences (that come from working with a range of businesses) and there’s a way to pay forward the experience you already have from working at other organisations.

“It really can be a great way of working.’’

Fractional workforce

- Australian businesses are increasingly choosing to employ freelance talent, with 70 per cent revealing they have hired freelancers or fractional workers in the past year.

- The trend is expected to grow, with 60 per cent of businesses planning to increase their freelance workforce in the coming year and 62 per cent considering fractional executives by 2025.

- In contrast, the permanent workforce is decreasing, with 62 per cent of Australian businesses having made redundancies in the past year.

-Three-quarters of executives say they would pursue fractional roles if they were made redundant, especially Millennials (81 per cent) and Gen X (73 per cent).

Source: Fiverr