Press Release
Even before COVID-19 modified the world of work forever, there was a trend in direction of a greater reliance on freelancers. In Strange , they now make up 35 per cent of the worldwide workforce – that’s about 1.1 billion people. Unsurprisingly, that quantity has been skyrocketing through the pandemic, with a progress of 24% recorded in only a single quarter on the top of the lockdowns.
The advantages of freelancing are equally helpful to each the company and the worker. During 2020, 75% of freelancers reported that their wages had remained steady that 12 months – one thing that plenty of full-time staff would struggle to say during the identical interval. Under one of the best of bad circumstances, full-timers may be furloughed or have their salaries reduce. At worst, they could possibly be made redundant, with the method of finding a brand new position being a sluggish and troublesome one. By contrast, a freelancer may lose one or two of their best-paying purchasers, however discovering and onboarding new ones are hardly ever that difficult.
For their employers, freelancers are sometimes capable of provide constant outcomes at a significantly lowered price. Savings could be made on all the expensive perks that full-time staff get, like medical insurance coverage, snacks in the break room, bonuses, pensions and so on. As such, it’s not stunning that the gig financial system is anticipated to achieve a worth of $455 billion by 2023.
Outsourcing overseas
The largest financial savings for businesses come after they work with international freelancers, with the added advantage of giving them entry to a world-spanning breadth of knowledge and expertise. Those dwelling in an space with a decrease value of dwelling – corresponding to Thailand – can cost less for their providers than a westerner should whereas nonetheless delivering good quality and nonetheless getting a good deal. In fact, one research discovered that digital marketing agencies in the west can save up to 400% by utilizing freelance content writers in Southeast Asia.
Problems arise when it comes to paying worldwide freelancers. It’s not as easy as asking for his or her financial institution details as international transfers can take weeks to be processed – weeks that your freelancer isn’t getting paid for and will be so much less inclined to work throughout. Another solution is required to enable this profitable industry.
How to not do it
There are some fairly well-established strategies of sending money overseas, although they have their problems whenever you attempt to apply them to a business need such as paying an overseas freelancer. Most notable is the easy proven fact that they charge vital fees for every transfer.
It’s not just remittance corporations that add fees. Some freelancing web sites, similar to Upwork, are able to handle payments for you, however they take a substantial commission from both the employer and the freelancer for doing so. Similarly, online payment portals like PayPal usually add a big price for sending money to an account established in another country. Any of these options could require the freelancer to add extra charges to their invoices to cover the value of fee, probably pushing the value up to the purpose that utilizing them ceases to be cost-effective.
How to do it
What is needed is a few service that will allow employers to transfer funds instantly into an abroad checking account each immediately and cheaply. Fortunately, fintech has delivered just such a solution – specifically, those companies like DeeMoney that specialise in cross-border funds and remittance. They are capable of deal with payouts in local currencies rapidly, transparently and with lower charges.
The chief advantage of such firms is they may help these freelancers with comparatively few purchasers to build a business. Some of the beforehand mentioned choices would be somewhat effective and acceptable if working in bulk, however that requires that the freelancer have many consumers paying premium prices, ideally all from the same nation. However, it is a relatively rare state of affairs and of completely no use to these just beginning out. With the gig economy persevering with to develop, as we said in the introduction, fintech corporations with a focus on international funds are absolutely important to unlocking the substantial potential worth of the industry by way of empowering micro-entrepreneurs.
Bonus extras
There’s extra to business than simply sending money from one place to another, after all – especially when you’re working with a freelancer. Fortunately, fintech companies like DeeMoney provide the instruments needed to help energy and grow the gig economic system.
Of course, not all freelancers work entirely independently. Indeed, a substantial chunk of the gig financial system comes within the form of Uber and DoorDash drivers (or Grab, Gojek and dozens of comparable corporations, if you’re in Thailand), Fiverr, Airbnb, Freelancer.com, Upwork and loads of others. In such cases, utilizing monetary providers offered by fintech firms could make things so much simpler. For instance, using a neobank instead of a traditional financial institution might help with the account setup process, particularly as many smaller conventional institutions are not supported on even the biggest platforms..