Business entrepreneurs frequently find themselves in a situation where they must act quickly and make difficult choices. But when the COVID-19 pandemic struck and the number of companies in this situation suddenly surged, it caused a shock that was, to put it simply, felt around the world. Some employers had to fire hundreds or even thousands of their workers.
More than 140,000 businesses had their Yelp listings indicate that they were temporarily shuttered at the beginning of the outbreak. By the end of August, it was 65,769.
On paper, it appears like thousands of businesses have reopened. On the other hand, 60% of temporarily closed firms ultimately closed their doors permanently, according to Yelp's economic impact assessment.
Freelancing was a priceless tool that many of the firms who survived used to tackle their operational and financial problems.
What specifically occurred this year, and could anything have changed the result? Let's look more closely.
A nightmare for businesses: COVID-19
The COVID-19 outbreak has had, and continues to have, an impact on businesses of all sizes. Mom-and-pop eateries have frequently been forced to close and reopen due to stringent operational requirements. Basketball matches have to be postponed for months by even a huge organisation like the NBA before moving to a "bubble" arena with digital fans within the stadium.
However, it is well known that small firms suffered the most.
Small businesses are especially financially vulnerable because they are frequently found with only two weeks' worth of cash on hand. Coronavirus Aid Relief is not readily available for everyone, therefore worries regarding eligibility further exacerbated everyone's anxiety about the lockdown lasting too long or a second wave arriving too soon.
In general, company owners have a pessimistic and uncertain outlook on the economy.
The understanding that we can never completely forecast what lies ahead is dawning, despite the fact that many expect that the small company climate will return to normal in six to twelve months.
Some business owners have already begun to prepare for potential future disruptions by stocking up on supplies to avoid shortages, upgrading their websites and social media profiles, and providing digital payment choices.
The biggest benefits for firms trying to survive the pandemic and beyond, however, are remote labour and the growth of the freelance economy.
How the gig economy will rule in 2023
Businesses disapproved of employees working from home just ten years ago. However, the COVID-19 pandemic made remote work essential to maintaining business operations; as a result, 55% of executives now provide this choice to their personnel. Since then, attitudes toward remote work have changed for both employees and companies.
If working remotely was an option, then why were there so many layoffs towards the beginning of the pandemic? Many businesses were suffering at the time and needed to find every way to reduce costs.
However, they still had to keep their operations going. This is where freelancers came in; they allowed companies to run their operations at a minimal level without having to pay high salaries. Due to the project-by-project payment structure for freelancers, businesses can only pay for the services they actually require.
How independent contractors are helping financially struggling companies
It should come as no surprise that the pandemic is altering the workplace. Freelancing is tempting due to firms paying greater attention to the enormous number of abilities available for hire and rising unemployment.
Currently, there are about 55 million independent workers in the United States, or about 35% of the total workforce. This number is predicted to rise to 43% this year. Additionally, as businesses review their total employment arrangements, we observe them delaying employing staff due to the weakening state of the economy. Positions that are available now might not be there in six months. However, the work still needs to be done, therefore organisations today are best served by recruiting independent individuals.
Smaller businesses work exclusively on the basis of need when partnering with freelancers in order to stay small and nimble. Freelancers are efficient professionals with a focus on crucial corporate competencies. They may also work effectively remotely, jumping right into initiatives and producing top-notch outcomes.
This puts the paradigm shift in a good position to establish itself as the new standard.
So what have we observed thus far? More companies are adopting hybrid workforce models that combine full-time employees and independent contractors.
assembling a freelance workforce to get ready for an uncertain future
Nothing is certain at the moment, if there is one thing that is.
Nobody wants to be unprepared in the event of future outbreaks or other catastrophes, which are more likely than ever.
Having a team of independent contractors on hand can clearly be helpful against those unexpected obstacles, providing a smart safety net that gives businesses more control over cash flow and operations if there are more lockdowns. Keeping operations running can be challenging when revenues plummet and employees are forced into their homes. This is why:
• Effective freelancers produce quality work. They're more accommodating to your schedule because they're used to working under pressure without compromising quality.
• They frequently possess a plethora of expertise (no resources wasted on training). There is a large selection of pros available (you can find the perfect match).
• No concern over wages, benefits, or taxes (more money in your pocket).