Contingent Workforce Booming
Over the past year, Australia’s freelance market saw a surge of 370,000 workers – with a third of the national workforce now participating in contingent work.
A study by Upwork, an online freelancing platform found that 4.1 million people in Australia have done some form of freelance work in the past year.
Employers in Australia are embracing the growing casualisation of the workforce, with greater than 30% of the Australian workforce now comprised of contingent workers. Faced with budget constraints, shortfalls in headcount or the need to complete a specialist project, contractors can often appeal as a risk-averse hiring solution. This is leading to a blended workforce, a combination of full-time staff and contractors to supplement them. Employers are benefiting by having contractors filling skill gaps and needs usually project bases where they arise.
The specialist skills and flexible working times of contractors mean employers can respond more quickly to market changes and short term business needs, and reduce the obligations that come with permanent headcount such as annual leave payments and superannuation contributions. Many Australian professionals are also choosing to become contractors and entering arrangements that offer greater flexibility, work/life balance and higher rates of pay.
Founder of freelance high-end consulting platform Expert360, Bridget Loudon, said young professionals were becoming increasingly comfortable stepping out of the workforce earlier to take on freelance work.
Expert360 has 5000 consultants on its platform, many of whom left the major accounting firms such as Deloitte, KPMG, PwC and Ernst & Young, which have churn rates of up to 30 per cent per year.
As legislation laws govern the relationship between companies and contract workers; with lack of knowledge, businesses and contractors can unintentionally violate these laws through innocent actions and policies, resulting in the possibility of huge penalties, back tax assessments, interest payments, and retroactive benefits.
If you are looking to engage contractors or are taking up a contracting arrangement and you are apprehensive on the complex legislations and administration, talk to SDP Solutions. We have been operating in the industry for over 11 years, providing effective contingent workforce solutions to independent contractors, recruitment agencies and companies.
We eliminate risk, increase governance of your contingent workforce and reduce costs and administration. Want to find out more, click here or alternatively call 02 9233 2200 or 1300 409 070.
