The Great Resignation?
In the United States, as of Labor Day 2021, unemployment benefits have expired, and many unemployed individuals will not return to the workforce. Surveys are suggesting that they plan on turning to freelance work instead. While it is unclear if they will ever return to a traditional job, several benefits come with being a freelancer: freedom and flexibility. Perhaps more importantly, this Great Resignation allows individuals to sell their skills, knowledge, and experience for as high as someone else is willing to pay for them!
One of the most significant changes with freelance work is the shift in power dynamics at the workplace. Although employers retain all decision-making power, their employees are now able to negotiate for higher wages. However, many employers are less concerned about the money and more concerned with receiving results that will maximize productivity. When an employee decides to leave or take time off work, they may neglect projects or responsibilities. This leaves the employer in a tough spot as they need to consider filling this void, starting fresh with a new employee, and training them.
This dynamic is much different when one’s role is temporary or contract-based. Unless the employer wants explicitly to retain an individual for future work, they will be more open to granting reasonable requests such as time off or flexible scheduling. This can be mutually beneficial for both business and worker.
Also, individuals currently in the workforce should expect increased job opportunities as employers will be less concerned with hiring and training new staff. As a result, likely, employers will also lean towards offering contract-based work. This opens up many opportunities for employees to switch to freelance work instead of searching for a new full-time position. Some employers may even provide contract-based work as an alternative to layoffs as it provides a solution for both parties as individuals can still receive a paycheck while negotiating for flexible hours and freedom.
Although this all sounds wonderful, there is a downside that freelancers have not yet faced: the uncertainty of their income. In a traditional work environment, employees receive a consistent salary regardless of their workload. There is no guarantee of income with freelance work as an employee must find clients and convince them to part with their money.
This was not a problem when the economy only experienced fluctuations, but now that a collapse occurred, many businesses have had to shrink or close their doors for good. This leaves freelancers with limited employment opportunities, making it challenging to land contracts and remain profitable.
The Great Resignation has many pros and cons that both employers and employees must consider to become successful. If the US continues on this path of freelance work, more changes will need to be made to ensure a minimum standard of living for all.