How online freelancers allow businesses to do more, and spend less

1. A Major Shake-Up In Hiring
How online freelancers allow
businesses to do more, and spend less.

2. If your feet are still firmly planted in the
traditional ways of employment, get ready Plummeting Tenures: Average
for a jolt. time American workers now stays on
the job: 4.5 years.
Why? The tectonic plates of hiring are shifting
quickly (really quickly, if you haven’t noticed). And
no area of business is fluctuating faster than how Then came the first trembler: The Internet. With
companies find and hire workers today. the web came new business models (online and
fast paced) and new ways of working (t-shirts
Truth be told, movers and shakers of all sizes
and telecommuting). Suddenly Fortune 500-sized
are moving to a workforce built with online
companies were hearing “Thanks but no thanks,”
freelance talent. It’s a seismic shift that’s bringing
from workers.
boundless opportunity and economic boon to
savvy teams quick to embrace this online work Next came another earth-shaking revolution:
revolution. Onsite freelance workers.
Changing values and lifestyles led cubicle-weary
First, step back to see the origins of this shift. employees away from the 9-to-5. Liberated
workers with high-demand skills were free to be
For decades, big businesses dominated the their own boss, set their own hours and work
employment world. The larger the company, the exclusively on projects that interest them most.
larger the draw. If you had brand recognition and But again, the freelance revolution was limited to
offices everywhere, top workers beat a path to those near large clusters of businesses who were
your door. hiring. Much of the work was on-site “contract”
work through staffing agencies.
“ nline freelancers allow us to
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secure talent, virtually in real-time, 30% of today’s American workforce is
to respond to our needs.” self-employed or part-time
(42 million workers).
The final aftershock: Online freelancers.
Businesses today are now enjoy a shake-up
being felt around the globe. It’s a powerful
movement improving possibilities for workers and
businesses alike.
It’s the move to online freelance work – now
made possible by technology innovation and
Mark Lee Ford online work platforms like Elance. With high-
President, The Moneo Company speed internet, video conferencing and shared
workrooms, jobs can now be done more
efficiently and affordably – from anywhere.
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3. Also, less overhead means more profitability. With
Many large companies today report online freelancers you save money by avoiding
30% of their procurement spend is on the high cost of a desk, hot coffee and other
contingent workers. expenses of on-site contingent workers. Online
workers also understand that projects are often
quick, so there are no requirements to book a
certain amount of time with a physical freelancer.
The benefits of online freelancers are numerous. This ensures you can staff-up and staff-down at
a moment’s notice. Sophisticated time-tracking of
Here are a few reasons why, in record numbers,
online collaboration firms like Elance also ensure
businesses are hiring online freelance workers in
efficiency and easy cost-tracking.
lieu of full-time employees (or to supplement their
current staff):
“ lance talent allows us to compete
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with much larger groups.”
1. Better tempo.
Online freelancers give you better time-to-hire and
time-to-completion. They are, literally, standing
by. There’s no longer the need to go through a
lengthy process of hiring, screening, interviewing
and offer acceptance (or rejection).
By going online you can post a job online and
receive job proposals from qualified candidates in
a matter of minutes. Simply indicate that the job
needs to start immediately – even that day – and
tackle critical projects and new opportunities as
they arise.
Dominique Molina
President, Certified Tax Coach
84% of businesses surveyed report
that hiring online gives them an
advantage over competitors. 3. Better skills.
Whatever project you have, it’s simple to go
online and in minutes find the most-talented
2. Better prices. freelancers – whether they’re located across the
street or across the globe. Simply put, with onsite
Similarly, with freelancers available around the freelancers you’re more-or-less limited to the
globe, you can compare multiple job proposals people in your immediate geographic area. With
to find a candidate delivering the best value. If online freelancers you can escape local limitations
you’re a small business in San Francisco you can and chose the best worker for the job, from a
get a mobile app developed without the high cost pool of millions.
of Bay Area freelancers. You can also compare
From technical and financial needs to marketing
rates within any region. If one area has a high
and design requirements, you’re certain to find
concentration of a certain skill, you’ll always find
a qualified candidate online. If you’re in rural
a wide variation in price between the candidates
America and need a PHP programmer, medical
depending on any number of factors.
writer or voice-over talent, simply post a job
online to receive job proposals.
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4. 4. Better screening.
According to a recent survey, the
Online workers have verified online profiles, top 3 advantages of online
amounting to complete transparency for you and
freelancers are: 1. Cost savings,
your team. You can instantly view a candidate’s
work portfolio, job ratings and recommendations 2. Faster-time-to-hire and 3. Access
from previous employers. No more educated to talent otherwise unavailable.
guesses – always know the quality of your
freelance workers before the job begins.
5. Better security.
“ lance helps me find talent, manage
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talent and most-importantly – When you choose online freelance workers, your
grow my business.” information, personal belongings and money are
safe and secure.
Simply put the money in an escrow account,
and when milestones are reached the funds
are released to the worker. Similarly, companies
such as Elance act as the “middle-man”, even
negotiating between parties if a dispute arises,
as well as handling all aspects of making
payments – whether it’s physical checks
or automatic deposits to bank accounts or
processing services.
Work produced online is also safer from
unauthorized surveillance, as online freelancers
Ramon Ray are able to work in secure, password protected
Editor Technology Evangelist, Smallbiztechnology
workrooms using the latest tools that protect your
sensitive information and intellectual property.
In-depth information in profiles can include
verified work history, verified location and contact 6. Better management.
information, verified credentials, verified feedback
from prior clients, tested skills, resume, portfolio It’s simple to find, hire, manage and work with
and work samples and even video introductions. online freelancers. Online job platforms such as
This information is free as well, as there are Elance simplify the entire process. In minutes you
no additional costs for extensive background can post a job online and be choosing the right
verification. person for the job.
Collaborating is simplified in shared workrooms
that include video conferencing and other
technology innovations. Elance also takes care
of the many thorny details, such as handling
invoices and making payments to contractors.
Record and tax keeping is simplified too, thanks
to online work innovations. Elance allows you to
add Value Added Tax (VAT) if applicable, as well
as indicate whether a contractor is a W2, 1099 or
other category of contractor. You’re in control.
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5. 7. Better work. each year. These statistics are only increasing, as
the company is reporting 40% quarterly growth in
Bottom line, if all the points above were jobs posted and freelancer earnings.
checked-off and the work was completed –
but unsatisfactory, online freelancers wouldn’t With ground-breaking numbers like these, it’s
be the best option. But the simple fact is, only a matter of time before online freelance work
freelancers regularly do better work than your becomes the norm.
full-time “staff” employees.
Why? Online workers are notoriously cheerful “Virtual “gigging” will be a game
and eager to please clients. That’s because changer.” — Fox Business
they’re specialists working when they want, on
the jobs they want, from wherever they want.
The result is that online freelancers do
Be prepared. Capitalize on an earth-shattering
consistently awesome work.
economic movement.
Businesses constantly report how easy it is to get
work done with their online workers. The only thing preventing these figures from being
even more impressive is that some businesses
are slow to adapt to the shift from full-time on-site
69% of those questioned report employees to online freelance workers. But when
being happier working as an online you see the multiple benefits of online teams,
freelancer. 79% report being more you’ll understand why the resistance to change is
productive than if a traditional eroding quickly.
employee.
About Elance.
Elance is where people work differently. A pioneer
Get ready for a changing landscape of in today’s online freelance revolution, Elance is
productivity and savings. the world’s leading platform for online work.
Today’s global workforce is in the midst of an With a community of over 2 million tested
exciting evolution to online work. This will allow and rated freelancers and 500,000+ active
businesses to more-affordably and efficiently find businesses, Elance is the most-popular place to
perfect workers to get the job done. find, hire and collaborate with top-skilled online
freelancers. Those hiring on Elance range from
The statistics speak volumes for the shift from
savvy Fortune 500 companies and established
traditional employment to online freelance. Today
businesses, to nimble start-ups and entrepreneurs
there are over 2 million registered freelancers on
looking to level the playing field by gaining fast and
Elance – the most-popular site for businesses
simple access to the world’s top talent. With over
to find, hire and collaborate with freelance
1 million jobs completed on Elance each year,
talent. Those freelancers are kept busy by
work ranges from quick one-person projects to
500,000+ active businesses using Elance to
entire teams tackling on-going assignments.
tackle everything from one-off jobs with a single
freelancer to ongoing projects being completed Headquartered in Mountain View, California and
by a team of freelancers. Oslo, Norway, Elance is a privately-held company.
For more information, visit www.elance.com.
To put the online freelance boom into perspective,
to-date freelancers on Elance have earned over
$700 million and complete over 1 million jobs
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6. 441 Logue Avenue
Mountain View, CA 94043
Phone: +1 (650) 316-7500
Fax: +1 (650) 316-7501
www.elance.com
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