Contractors provide essential services. But what does the data say?
40% of freelancers believe they have been misclassified, and 36% of companies admit to “sometimes or always” misclassifying employees as contract workers.
Misclassification is one of the most serious issues companies and contractors face. According to our data, contractors feel they are being misclassified — and companies are aware they have misclassification issues.
49% of all companies surveyed use in-house tools and systems, such as manual spreadsheets, to manage contracts and billing for freelancers.
Contractor management tools make it easier to manage invoices, track hours, and pay contractors on time. But nearly half of companies still rely on outdated spreadsheets, contributing to miscommunications and delays.
85% of freelancers surveyed have their invoices paid late at least some of the time.
Freelancing isn't easy. Chasing down client invoices takes work, and contractors widely prefer to work with companies they know will pay their bills on time.
37% of companies surveyed hire freelancers internationally, even in countries where they don’t have offices.
For most companies hiring contractors, borders shouldn't matter — but in many cases, companies continue to limit their searches for freelance talent to their own countries, locking them out of great partnerships.
45% of employers report noticing an increasing number of freelancers in the 55+ age bracket.
Older workers are now freelancing at increasing rates. Gig work isn't just a young person's game anymore: anyone, at any age, can provide their services outside of full-time employment.
58% said having a more flexible schedule was the biggest advantage to being a freelancer.
Freelancers love freedom. Contractors get to choose their own hours, and many say they choose to stay self-employed to retain that flexibility.
52% of employers surveyed said their use of freelancers has increased in the last three years.
Businesses are increasingly relying on contract labor to complete projects and maintain operations. According to the data, contract labor is essential for businesses to scale quickly.
37% of employers surveyed said they typically hired freelancers or contractors for roles in IT and engineering, the most of any sector.
While companies hire freelancers for a broad range of services, technology workers are the most common.
Freelancers in certain countries, including the United States and Switzerland, while considered to be skilled, are often overlooked for cost-saving purposes.
Contractors are not necessarily cost-saving roles, but cost always plays a factor. Companies with complex needs hire the best to guarantee success, but when cost efficiency is on the table, companies often turn to countries with lower rates.
Recommended reading on contractor management
Want to know more? Read these articles from Remote about contractor management, freelance workers, and more.
