The world of freelancing is an interesting one. It has been remarkable to watch its recent rapid expansion. Nowadays, people from all walks of life are thinking about freelancing as a long-term employment choice. 

Here are 15 factors driving this trend:

1 Additional investment opportunity for startups.

In 2021, venture capitalists invested $621 billion, which is twice as much as in 2020. Freelance platforms accounted for a considerable portion of this investment, with A and B rounds greater than ever before. Africa, Southeast Asia, and Latin America are markets with rapid growth and good access to global investment.

2 Dispersed Teams.

At this crucial time in the fight for talent, "location" should not be a barrier to hiring. Younger managers are 28% more likely to incorporate remote employees into their teams than their Baby Boomer colleagues. In addition, teams that put the proper infrastructure and processes in place to be remote will not only have a competitive edge in attracting talent but will also be set up for long-term talent strategy success. By not limiting your organisation to a single location, you have access to a broader and more diversified talent pool and more economical options.

3. An increase in the overall amount of freelancing work.

It is difficult to be pessimistic about the freelancing revolution. The findings indicate market strength, freelancer happiness, an expanding support environment, and a rise in corporate confidence. By 2030, McKinsey predicts that 500 million freelancers will work through platforms, and COVID-19 has been a significant catalyst in the revolution.

4. Professional Development with Independent Experts.

Due to a widening skills gap, enterprises must seek novel methods to recruit and retain the right personnel. One approach is implementing internal programs that assist current employees with reskilling education and training. A second alternative is employing external, independent individuals who possess the requisite abilities. Self-employed workers perceive that they are business owners, and as a result, they are more likely to polish and expand their capabilities to remain competitive. According to a survey conducted by Upwork, independent freelancers are twice as likely as employees to have participated in skills training during the preceding six months.

5. Employees opting for "freelance lite."

Nearly 40% of employees hold a second job. This is significant because more employees are aware of their options, are aware that freelancing is a realistic and appealing alternative, and are demanding a "freelance-lite" work experience from their employers: greater flexibility and work-life balance, assignment choice, faster career opportunities, hybrid work, and higher pay.

6. More freedom in freelancing and simpler payment terms.

According to Payoneer, freelancers often earn a solid income, but payment challenges and delays continue to be a source of frustration. A recent poll from WondaPay in the United Kingdom offers optimism: Only 10% of freelancers reported payment delays. But, development is inconsistent.

7. Additional reasons to leave the nest and pursue freelance work.

Employee engagement is declining, leadership credibility is deteriorating, employees are reluctant to return to the workplace, and some are actively seeking employment elsewhere or biding their time. The four-day workweek, a commendable attempt, has yet to gain popularity. Nearly half of US corporate employees said they would quit if their employer did not provide a hybrid option. So it is hardly surprising that freelance work is increasing in popularity.

8. More companies are doing direct sourcing through their own platforms.

It's the traditional Gillette business model: Give away the handle and sell the blades. Platforms assist business clients in developing a customised platform and populating it with a chosen selection of freelancers. Now, corporate clients are augmenting their proprietary platforms with freelancers, alums, and boutique consultants. Expect this tendency to persist and expand.

9. There are more means to establish a freelancing profession.

There are so many opportunities for part-time and full-time freelancers, and savvy freelancers develop portfolio careers. Online courses, coaching engagements, podcasts, expert networks that pay for information sharing, newsletter subscriptions, and micro-community development are emerging methods for freelancers to expand their revenue, network, and brand.

10. The platforms put more money into getting freelancers.

Freelancing has an issue with supply, not with demand. Freelancing platforms realise that talent is their most valuable and precious commodity. As a result, there is a demand for more freelancers working full-time. Some companies eliminate fees or lower prices to entice them, while others provide tools for education and business. Or plan recurring events and gatherings. Some pay using cryptocurrency or give business counselling or public relations help via award posts, blog authoring, webinars, and podcasts. The transition from talent repository to talent engagement is not yet a tsunami, but it is more than a wave.

11. Additional ecosystem support for independent contractors and platforms.

In every industry, new businesses are springing up to fulfil the demands of freelancers and the networks that enable them. Fintechs such as Sonovate and Payoneer, FMS service providers such as myBasePay and conventional banks are responding to the freelancing economy. More will follow. Tax assistance, insurance and benefits, access to competitive vehicle finance, continuing education, healthcare, and other services provide freelancers with access to perks while allowing platforms to outsource and emphasise their core competencies.

12. More freelancing assistance from colleges.

More educational institutions, such as the Gig Lab at Conestoga College in Canada, are incorporating solopreneurship skills into entrepreneurship curricula. In addition, more micro internships that provide students with genuine organisational experience are being offered. Working closely with Edtech pioneer Parker Dewey, Kansas, is a surprising and welcome innovation in this field. Still a trickle, but other states and municipalities are monitoring the situation. And it goes beyond schools. Even public libraries are contributing!

13. Extensive use of purpose-built platforms.

G2i.co emphasises healthy work, and Ravenry.com is a freelancing acceleration platform. Braintrust.com grants freelancers ownership of a shared platform. Hoxby.com prioritises work-life balance. Malt.com and Comatch.com have pioneered a glocal strategy, while Freelancebusiness.be provides a robust freelance education. Expect freelance platforms to place a greater emphasis on purpose to distinguish themselves and attract top talent.

14. More endeavours to expand the community of full-time freelancers.

Expect new methods to recruit full-time freelancers of the highest calibre in developing sectors. With Apple and Tiktok offering significant incentives to top producers, should freelancing platforms compete for high-earning or "influencer" freelancers by providing income guarantees, bonuses, scholarships, sabbaticals, and even equity?

15. Finally, more nations recognise that freelancing is here to stay.

Regulatory change is intensifying, especially in the United Kingdom following IR35. Most countries view freelancing as an excellent or innocuous (political) trend and are opening up their economies to it.

Freelancing was always there. While Covid-19 might have accelerated the it into a trend, it is definitely not new and is now here to stay. Recognising the distinction between gig workers and freelancers, who are independent professionals, is a significant obstacle. These populations have distinct requirements. Let's safeguard the former while avoiding punishing the latter.