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FREELANCE SURVEY 2012

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Page 1: Freelance survey 2012

FREELANCE SURVEY2012

Page 2: Freelance survey 2012

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

Page 3: Freelance survey 2012

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What is a Freelancer?

We define a freelancer as an interim manager, or expert

working on a temporary and independent basis with a company or organization.

Page 4: Freelance survey 2012

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Freelance Survey

Online March - April

2012

500 respondents

Joint initiative

Page 5: Freelance survey 2012

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Fast MovingFin

an

ce, B

an

kin

g &

Insu

ran

ce

Automotive, Transport & Logistics

IT &

Tele

com

Oth

er

Healthcare - ICT

Utilities Public

Med

ia

Travel, Tourism & HoReCaN

on

pro

fit

Bio

tech

nolo

gy

Education

Creative, Art, Culture, Photography, etc

Who were these 500 Freelancers?Industries

Page 6: Freelance survey 2012

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Finance & Accounting

Project Management

Mark

etin

g &

Com

mu

nic

atio

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

Page 7: Freelance survey 2012

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2%

22%

44%

25%

7%

26-30

31-40

41-50

51-60

61-72

7%

14%

14%

10%

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%

Page 8: Freelance survey 2012

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N = 380

Who were these 500 Freelancers?Gender

79%

21%

Page 9: Freelance survey 2012

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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”

Page 10: Freelance survey 2012

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THE MARKET FOR FREELANCE ASSIGNMENTS

The

Mar

ket

How the market for freelancers looks like

Page 11: Freelance survey 2012

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N = 418

2012

DEMAND

After some challenging years, the freelancers anticipate a positive trend

+

-

Page 12: Freelance survey 2012

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N = 64N = 422

85%

8%4%1%2%

Did you find an assignment during last 6 months of 2011?

I didn't find an assignmentIt was my choice not to have an assignmentI'm a freelancer only since 2012Other

Yes No

Chargeability over the last 6 months

Page 13: Freelance survey 2012

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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

+

-

Page 14: Freelance survey 2012

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N = 398

2009 2010 H1 - 2011 H2 - 2011 H1 - 2012 H2 - 2012

Fee evolution is negative

+

-

Page 15: Freelance survey 2012

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Bache

lor o

r Hig

h sc

hool

sho

rt ty

pe

Maste

r or H

igh

scho

ol lo

ng ty

pe o

r uni

vers

ity

Post

uni

vers

ity

PHD/ M

BA

0%

20%

40%

60%

80%

100%

10% 5% 8% 12%

65%55% 44% 23%

21%28% 32%

37%

4% 6% 6% 21%5% 5% 5%4% 2%

Impact of education on fee

300-499 500-699 700-899900-1099 1100-1299 1300-1500

N = 295N = 301

N = 282

31-40 41-50 51-60 61-72550

590

630

670

710

750

Impact of age on fee

Average fee Median Fee

Man Woman540

580

620

660

700

711

640

Impact of gender on fee

Average Fee Median Fee

Age, Gender & Education are factors that influence the daily fee

Page 16: Freelance survey 2012

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N = 334 N = 340

N = 340 N = 309

0-3 months

4-6 months

7-12 months

1-2 years More than 2 years

600

620

640

660

680

700

720

740

Average Fee per Assignment Duration

2 3 4 5600

650

700

750

Average rate per billable days per week

0200400600800

747 727 714 709 705 705 704 698 698 687 673 663

Impact of sector on fee

Average Fee

Median Fee

Opera-tional

interim fct

Interim people

mgr

Other Project based roles

Change or risk roles

550

600

650

700

750

800

850

0

20

40

60

80

100

120

140

Impact of roles on fee

Average Fee

Count

Median Fee

The assignment role and sector also have impact

Page 17: Freelance survey 2012

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What is the freelancer facing?The freelancer perspective

Page 18: Freelance survey 2012

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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

Page 19: Freelance survey 2012

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N = 496N = 488

What drives and what holds you back?

3/4

of fr

eela

ncer

s

app

reci

ate

aut

onom

y an

d va

riatio

n

2/3

of fr

eela

ncer

s

fear

finan

cial

unc

erta

inty

and

not

findi

ng n

ew a

ssig

nmen

ts

Page 20: Freelance survey 2012

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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

2

3

4

5

6

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

1%

5%

16%

28%

49%

1%

Billable days per week

For over 50%, the 5-day week is not the standard

Page 21: Freelance survey 2012

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N = 375

The own network preferred and most efficient sourcing channel, closely followed by service providers

Own ne

twor

k (in

clud

ing

prio

r clie

nts)

Serv

ice

prov

ider

s

Direct

con

tact

with

curre

nt cl

ient

s

Onlin

e sit

es fo

r sea

rchi

ng fr

eela

nce

jobs

Socia

l med

ia

-25

-20

-15

-10

-5

0

5

Net Promoter Score – Effectiveness Channel

Page 22: Freelance survey 2012

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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%

NoYes

N = 401

Common extra activities:•Accounting•Teaching/Coaching•Directorship•Sales

45%

26%

29%One

Multiple

None

How to mitigate the Financial uncertainty

Page 23: Freelance survey 2012

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N = 326

This means that on average, a freelancer is billable for 81%Partially, this is an own choice.

0 1 2 3 4 5 6 7 >70%

5%

10%

15%

20%

25%

30%

Average length in months in between assignments

Finding assignments: the average length between assignments is 2,28 months

50%

Page 24: Freelance survey 2012

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The ideal assignment length is 7-12 months (seconded by assignments of 1-2 years)

0-3 months 4-6 months 7-12 months 1-2 years More than 2 years

0%

5%

10%

15%

20%

25%

30%

35%

40%

13%

20%

32%

22%

13%9%

20%

35%31%

6%

Assignment Duration

average duration (N = 406)ideal duration (N = 409)

Freelancers want and get assignments of 7 months to 2 years

Page 25: Freelance survey 2012

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Freelancers and Service Providers, a Win-Win scenario?

Page 26: Freelance survey 2012

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N = 393

82%

18%

Do you have experience in working with Service 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

Page 27: Freelance survey 2012

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N = 310 N = 302

Match makers

Expertise domain experts

Umbrella agents

Quality agents

Big 40%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

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%

Which type of Service Provider do you know and worked 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

Big 4

None

Match makers

Expertise domain experts

Umbrella agents

Quality agents

0% 10% 20% 30% 40%

6%

5%

16%

41%

6%

26%

For which type of agent are you most likely willing to work in the future?

Facts & Figures: Who is the preferred partner?

Page 28: Freelance survey 2012

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0%

10%

20%

30%

33% 29% 24%11%

2%

Why wouldn’t you work with a Service Provider?

N = 65

* 65 out of the 500 respondents answered this question

Bad c

om

munic

ati

on/r

ela

tionsh

ip

Bad p

rofile

vs

ass

ignm

ent

matc

h

Body S

hoppin

g

Com

peti

tion w

ith o

ther

FL/Inte

rnal

Consu

ltants

Hig

h inte

rmedia

ry m

arg

in

Lack

of

follow

-up/s

upport

/feedback

Low

conta

ct w

ith e

nd-c

lient

/ purp

ose

of

the a

ssig

nem

ent

Short

term

ism

Tre

atm

ent

as

subord

inate

iso

part

ner

0

50

100

150

200

7 16 5 16

157

7 3 8 8

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

0 1 2 3 4 5 6 7 8 9 100%

5%

10%

15%

20%

25%

5%2%

4% 2% 3%

11%

5%

12%

22%

16% 17%

Loyalty FL towards service providers

Loyalty from 0 (not loyal) to 10 (absolutely loyal)

0 1 2 3 4 5 6 7 8 9 100%

5%

10%

15%

20%

8% 6% 8% 8%5%

14%

9%

15%13%

7% 8%

Loyalty service providers towards FL

Loyalty from 0 (not loyal) to 10 (absolutely loyal)

Average loyalty of Freelancers towards Service Providers; 7,92

Average loyalty of Service Providers towards Freelancers; 6,34 >

Hate-Love relation: Loyalty

Page 30: Freelance survey 2012

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N = 417

0%10%20%30%40%50%60%

55%

21% 14%7% 2%

What will be your most likely strategy in times of crisis?

Hate-Love relation: But in times of crisis

Page 31: Freelance survey 2012

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N = 363

Shar

ing

know

ledg

e

Organ

izin

g ne

twor

k ev

ents

Supp

ort d

urin

g as

signm

ents

Organ

izin

g tra

inin

gs0%

10%20%30%40%50%60%70%80%

68%52% 52% 50%

Main actions that Service Providers can take or develop further to optimize your role as Freelancer

Freelancers have clear expectations

Page 32: Freelance survey 2012

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N = 138

Guara

nte

ed n

um

ber

of

charg

eable

days

Adm

inis

trati

ve a

ssis

tance

Netw

ork

poss

ibilit

ies

Support

duri

ng a

ssig

nm

ents

Tra

inin

g p

oss

ibilit

ies

Lead g

enera

tion f

ees

Earn

ing o

f quality

label: r

efe

rence

s,,,

Acc

ess

to c

om

pany k

now

ledge

Primary motivators to work through SP’s

Page 33: Freelance survey 2012

Presentation1

Expertise domain ex-

perts

Quality agents Match makers Big 4 Umbrella agents

0%

10%

20%

30%

40%

50%

60%

56%

45%

31%

22%15%

Willingness to work with current SP

N = 267

Freelancers find this with?

Page 34: Freelance survey 2012

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What did we learn?

Page 35: Freelance survey 2012

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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 an assignment finder

Higher education results in higher fees

Important sourcing channels: own network & service providers

Preferred type of service provider: expertise domain experts

Concerns towards service providers: margin, added value, loyalty

Page 36: Freelance survey 2012

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Conclusions on service providers

Finding the right assignments

Financial compensations

Expertise development Networking

Page 37: Freelance survey 2012

ONCE A FREELANCER, ALWAYS A FREELANCER