Two Surveys Give Differing Perspectives of Freelancing

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What is it really like to work as a freelance professional? It seems many Americans are gravitating toward that kind of work lifestyle these days. According to the 2018 Freelancing in America survey by Upwork, nearly 57 million Americans worked as a contractor or freelancer in 2018, making up roughly 35 percent of the workforce. That percentage is expected to grow to 50 percent by 2027.

In Upwork’s survey, a majority of freelance workers work independently by choice, not out of necessity. While many freelancers surveyed admit they earn less money, they also enjoy better work-life balance (77 percent).

With so many freelance professionals flooding the workforce, it might be helpful to learn more about this independent work arrangement. What is so appealing about working  freelance? What are the pros and cons? What type of work do they do? How do they find clients? What are the benefits and challenges?

A survey by Flexjobs.com of 1,000 flex workers and freelancers provides some valuable insights, including some that are surprising and unexpected.

According to Flexjobs, the typical worker whose freelance work is their sole source of income is a female, generation Xer working in the marketing, editing, writing and creative career fields, primarily for small companies and individuals and juggling two to three clients at one time. She has been freelancing for at least three years and plans to continue freelancing for the long-term.

Interestingly, that conflicts with the Upwork survey, which indicates that Millennials and Generation Z workers are the driving force behind freelance work. I suspect that many of Upwork’s estimated 12 million site users fall into those demographics, while Flexjobs’ users are older, more experienced professionals.

Flexjobs reports that while 45 percent of respondents have been freelancing at least three years, 38 percent have been doing so for less than one year. That’s an awful lot of newbies in the market. Interestingly, that percentage dips to 18 percent for one to two years. My guess is the drop off occurs because the newcomers have decided to return to full-time work or that the first year of freelance was to test the waters.

While most freelancers work in multiple fields, the highest percentage are writers (29 percent) followed by customer service professionals (23 percent) and administrative professionals (21 percent). While writing is still considered a valued skill by employers, it seems they’d rather hire them out on a project basis than full-time.

Roughly 24 percent report that their work is a combination of freelance and employee jobs while 45 percent choose to freelance full-time. While 39 percent of freelancers work between 21 and 40 hours per week, 35 percent work less than 20 hours a week. I suspect those working fewer hours are new to freelancing and have yet to build up a steady client base. Or perhaps they choose to work freelance on a part-time basis.

More than half of respondents said they found gigs through networking (56 percent) and from job sites (47 percent). While you would think large companies would be the source of most assignments, that isn’t the case. Instead, most freelancers work for other individuals (56 percent) followed by small companies (46 percent), and mid-sized companies (30 percent). Freelancers worked for large companies only 17 percent of the time. The takeaway from this is if you want to find work, the best sources will be other professionals or small businesses.

Another surprising tidbit: Three-fourths of freelancers do not have a website to support their freelance business. If your work is good and you perform client assignments well, word gets around. Clients will find you. Don’t underestimate the power of a strong referral. A website may not be as necessary for your long-term freelance success as you might believe.

The biggest benefits of being a freelancer are flexible schedule (84 percent), work-life balance (66 percent), freedom to work where they choose (61 percent) and no commuting (60 percent). The desire to be your own boss was cited the least (49 percent)

The biggest challenges for many freelancers are finding clients, cited by 65 percent, and having a steady income, cited by 64 percent. That’s nothing new. Despite the romanticized view of freelancing, often by traditional employees working 60-hour work weeks, freelancing is hard work. One critic of the Upwork survey and the rosy picture it painted of the freelance industry said this: “People who don’t have to freelance love to romanticize freelancing – the actual truth is that making a living as a freelancer is harder than hard and sucks a ton of the time.”

Bottom line: Not everyone is cut out to be a freelancer or entrepreneur.

Despite the challenges, two-thirds of freelancers in the Flexjobs survey reported a better overall quality of life. Sixty percent said freelancing helped them become healthier, 66 percent are less stressed than when they worked in a traditional job and 59 percent are less financially stressed.

Anyone considering freelancing needs to consider the good, bad and the ugly side of the business. For all its outward glamour, the freelancing lifestyle still requires a lot of hard work just to make half of what you earned in a steady gig. Upwork may boast 12 million freelancers using the site, but only 400,000 of them actually earned money in 2018, says Stephane Kasriel, Upwork’s founder.

“Like any business to be successful, specific competencies are required, and our most successful freelancers are painstakingly aware of what they need to do to remain successful. That means having and investing in the right technical skills. But it also means having the right entrepreneurial skills, the ability to sell, deliver, evolve your skills and keep improving over time,” says Kasriel in a Forbes interview.

Which might explain why so many freelancers and small businesses struggle within the first year. Freelancers don’t think about the extra time and work involved to evolve their skills or to sell their services when they set up shop. It’s important to think about these factors when considering joining the freelance movement.

Tips for Creating Work-Life Balance as a Freelancer

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When you work as a freelancer or independent contractor, you are your own boss. You can set your own schedule, goals and priorities. You can take time off when you want to. You have more freedom. 

Sounds idyllic, doesn’t it?

But the fantasy rarely lives up to reality. More often than not, that self-imposed schedule and responsibility can get out of hand if you’re not careful. While it doesn’t happen often, freelance work can result in forty-hour plus workweeks. For many freelancers, the opposite is true. There isn’t enough work and they’re scrambling to find new clients. Constant fear and worry can nag at you about making ends meet or getting clients to pay on a timely basis.

When you work for yourself, it’s easy to focus more on your clients than your own family. Even more than your own well-being. It’s easy to lose track of your schedule. It’s easy to forget that you have a social life.

But take heart. There is hope for all freelancers. According to the 2018 freelancer survey by Upwork, 77 percent of full-time freelancers reported having a better work-life balance since becoming self-employed. It is possible to achieve that balance. But like everything else, you have to work at it, and you have to plan for it.

Having work-life balance is critical for your well-being for several reasons. It helps prevent burnout so you won’t feel overwhelmed by all your responsibilities. It helps you feel more energized and refreshed so you can face each new challenge. It helps clear your head so you can think more clearly.

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Once you decide to begin working for yourself, it’s important to establish work-life balance early on in your freelance career. When you shift from a full-time job with a fairly set schedule to not having a set schedule at all, it can be easy to lose your sense of balance. As your own boss, it’s up to you set create that balance. Make it a part of your business planning. But how do you do it?

Here are a few ideas to help you create more work-life balance in your freelance career:

1. Set a regular work schedule. Establish consistent work hours and stick to them. If you worked a nine-to-five job previously, establish a similar type of schedule when you first start out. Make sure you give yourself two days off each week. Setting up a regular schedule with two off days keeps you in a routine that you can sustain.

2. Stay connected with family and friends. When you work for yourself, it’s easy to fall into the trap of believing you are alone. That’s not true. No matter how busy you are setting up your business and pursuing new clients, don’t forget about your family and friends. They are your support system, and they can give you proper perspective when business gets too hectic or if things don’t go as smoothly as you planned.

3. Don’t be afraid to say no. No to assignments that would be a waste of your talents, no to outside obligations until you meet your deadline, no to clients who don’t pay on time or change their requirements. Know your limits. Know when you’ve had too much on your plate. Pass on the assignment or refer to another professional.

4. Keep your calendar organized. Keep all appointments in one place, both personal and professional so you don’t accidentally overbook yourself. Also set clear goals and priorities and list them in your calendar as a quick reminder of your obligations.

5. Detach and disconnect from devices. Information comes at us 24/7 via our devices, social media, computers and TV screens. It can be difficult to shut it out. It’s up to you to do that. Set aside a day or a weekend to do a digital detox. It might be helpful to put those detox dates in your calendar.

6. Set up a “fun” account. Small Business Trends, an online publication about small business practices, suggests setting up a separate bank account to be used solely for fun activities. As you get paid from clients, set aside a set amount into this fun account so you have money to splurge on that weekend spa getaway or ski trip you’ve had your eye on.

7. Practice self-care. To be your best for clients, you need to live healthily, suggests experts at FilterGrade.com. Eat properly, get proper sleep, practice meditation and yoga, or take long walks. Do anything you can to clear your mind and center yourself.

8. Keep up with personal interests. Maintain your hobbies, whether that’s playing tennis, reading the latest best-seller or attending concerts. Volunteer with your favorite cause. Sometimes when you spend time with those less fortunate, it puts your own troubles into perspective.

Whether you’ve been freelancing for for some time or are just starting on your journey, setting aside time for yourself is as critical to your success as helping your clients. When you work for yourself, it’s up to you to make work-life balance a priority.

Related Articles
7 Strategies for a Better Work-Life Balance in the Freelance Economy, Forbes
Here’s Why the Freelance Economy is On The Rise, Fast Company