Freelancing gives companies and workers flexibility

Studies have found that freelancing is the future of work. But what do the experts think? David Suarez, partner, Middle East people and organisation leader for PwC, explains why more people will freelance in the future.

Q

Why is freelancing expected to become more popular?

A

Because it hedges bets for employers and employees. And because it can be done more efficiently. Let us also remember that in developed economies at least, the bulk of the GDP comes from companies that have fewer than four or five employees. These companies typically rely on a contingent workforce to meet peaks in demand. In the future we will just see more of this.

Is freelancing the future of working?

It’s part of it, for sure. But not the only destination.

What benefits does it offer the freelancer and companies?

Freelancers in the future will be able to offer an increasing amount of services digitally and remotely. So they will be more efficient. Companies have access to a much more variable (or contingent) workforce that can be increased or decreased without having to lay people off, and adapt much more quickly to fluctuations in demand.

Are there any downsides?

Yes. Like anything. This is no silver bullet. The contract between company and employee is in a way broken. There will be less loyalty in the future. The other downside for the freelancer is that there is a much thinner safety net in terms of pension, savings plans and benefits etc. This is much the same as today but it will become generalised to a wider population.