SMEs work with more freelancers than employees, research reveals

Over half of the UK’s small and medium enterprises (SMEs) are now filling skills gaps by harnessing freelance talent from all over Europe, with 62% claiming that they now work with more freelancers than employees.

That’s according to online freelance platform PeoplePerHour (PPH), which recently conducted a survey of 1000 UK SMEs. It found that over half (67%) are now filling skills gaps within their company by using freelance talent from all over Europe, averaging 41 hours of freelance work per month on top of their core payroll.

The ability to fill positions for which local applicants lack the requisite skills appears to be the biggest drive towards freelance recruitment, with 55% of SMEs explaining that this was the main draw for their increased freelance expenditure.

The top three outsourced skills are Admin, followed by Web and App Development.

Meanwhile, one in three (37%) stated that increased capacity and flexibility was an advantage, with a further 13% saying that being able to easily access skilled workers without incurring recruitment fees was a major influence in their decision to take on freelancers.

PeoplePerHour Founder and CEO, Xenios Thrasyvoulou, commented: “Ten years ago the majority of businesses cited local staff as their main source of employees, now the majority cite freelancers as their main source of hiring. This turnaround has been rapid and the change has taken some by surprise – perhaps this accounts for the recent fracas around the Chancellor’s threatened manifesto breach.

“Self-employed and freelance workers make an enormous contribution, not just to SMEs and the wider business world, but to the whole of the UK economy. In allowing businesses to access niche skills without the expense and trouble of recruiting a permanent employee, it could be argued that the freelancer is the real grist to the mill of British business. It’s time that we stopped underestimating the benefits that they bring.”