The last half-decade saw significant changes in the standard culture and practices of the modern workplace. The COVID-19 pandemic was just one of the key vectors of change — the move to remote work (and subsequent revocation of this policy), the great resignation, and the increase in usage of a flexible workforce have led to a dramatic reorganization of work. While many of these changes have been most evident in the private sector, where innovation and risk-taking are more normalized, they have also trickled out into the public and nonprofit sectors. The changing expectations of the modern workforce are something you might want to keep tabs on, even if your nonprofit has remained mostly the same.
One of the less-discussed trends is the move away from full-time positions to freelance work. It’s a trend that predates the pandemic, but, like remote work, it has greatly accelerated over the last few years. Like any of the recent changes in office culture and work, it brings significant benefits and risks. Most nonprofits struggle to hire and retain talent relative to public and private sector organizations, which makes recruiting and hiring freelancers an attractive stopgap measure or even long-term solution to staffing issues. If you’re considering bringing in freelancers, here are some of the key benefits and risks you might consider:
Freelancing is on the rise
There are a few discrete reasons why , motivated both by employers and by workers. The growth of collaborative internet tools, reliance on online job applications and platforms, and the shift towards hybrid or fully-remote work have all created opportunities for organizations and individuals to carve out more granular, clearly-defined sets of expectations. Rather than hiring for a role in, say, marketing, an organization with a limited budget could instead hire a freelancer for specific marketing projects as they arise. This offers a great deal of flexibility to both employers and individuals but can also create personal and organizational precarity.
Another key dynamic creating this shift is generational — younger generations expect and value flexibility at work, which is why a majority of workers under the age of 30 have done some freelance work over the last few years. It is harder to determine whether this will remain true going forward — freelancing is more attractive to people who may not need a consistent stream of income, which is truer of recent college graduates than middle-aged or older workers. Younger generations also tend to be more enthusiastic adopters of new technology, taking to remote work and freelance or “gig economy” platforms faster than older workers.
The pros and cons of hiring freelancers at nonprofits
Whether you’re exploring the possibility, or you have already started hiring freelancers, it’s worth thinking through the long-term benefits and costs of this strategy.
Pros
Workforce flexibility
The key benefit that freelancing offers to any organization is the flexibility of freelance roles relative to full-time or part-time hiring. Because nonprofits often struggle to raise enough money or have the budget to achieve every goal they want, being able to hire workers for specific tasks and with limited financial obligations beyond the specific task can be extremely valuable.
Access to labor
It’s a truism about nonprofits that they struggle to compete in the hiring market. Because private- and public-sector organizations often offer greater financial incentives or stability, nonprofits constantly need to find new ways to build out their workforce. Freelancers can help alleviate this issue, allowing you to grant schedule flexibility or remote work instead of financial incentives. Additionally, freelancers who show interest in your organization might also be identified as potential hires down the line, saving you recruitment cycles and onboarding time.
Financial predictability
It depends on the exact role and tasks you assign to freelancers, but using a freelance model can help you make granular assessments of project value and productivity. Having a clear idea of labor costs per project can make it easier to measure the ways a project has or has not benefited your organization and mission. This becomes more useful as you adopt the freelance model more — having a record of project-specific labor costs can help you budget with confidence.
Cons
Organizational fit
One of the issues you might face when hiring freelancers is onboarding them and building a program that maximizes the benefit they can provide to your organization. When you hire a freelancer, they may require similar onboarding to a new employee, with the added drawback that they will, by the nature of their status, be less invested in your mission and organization. Getting freelancers up to speed and getting the most out of their work can create some hurdles for you. However, once you develop a roster of qualified freelancers, this may not be such a challenge.
Inflexibility
Somewhat paradoxically, an overreliance on freelancers might lead to labor shortages when you need help most. Freelancers can offer flexibility, but often have other clients and obligations and might not be available any time you need them. While it can be cheaper at times to use freelancers for discrete tasks or when your team is overwhelmed with work, they aren’t guaranteeing you anything beyond the work they’ve already agreed to complete.
Lack of investment
Nonprofit employees are often quite dedicated to the mission of their organization, which is part of what makes them a valuable asset beyond their skills. While some freelancers may engage with your organization hoping to make a difference, may be more transactional in nature, and this may lead to issues or disagreements within your team. Even freelancers who do great work may not feel called to go above and beyond the way that your employees are used to.
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The information contained in this article is not a substitute for legal advice or counsel and has been pulled from multiple sources.
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