Access to great freelancers is a blessing. With them, you can quickly create great content, marketing campaigns and produce amazing projects that really help you stay ahead of the pack. This is true for all digital agencies, most marketing departments and a majority of all businesses.
Sounds easy enough but what about profitability?
In many ways it is easy to expand your business with freelancers. It goes without saying that using freelancers is a great resource for complementing your in-house skills. It will also help any organization stay financially flexible.
We asked 10 CFOs in our core market, the digital agency market, and here is an outline of their main conclusion:
“We grow top line and are able to maintain profitability, but only if we have high predictability and visibility in the use of both internal resources and freelancers.”
Well, high predictability and the ability to plan long term is not going to happen any time soon. This is painfully obvious in aggregated industry P&Ls with shrinking profit margins.
So what do Agency CFOs really say?
- If we have to recruit freelancers at short notice we tend to pay way too much.
- If we use freelancers and get used to it, we get slightly oversized unless we proactivly reduce FTE’s. You can’t have it both ways.
One way to interpretate it is that you need to have a Freelance Strategy in place that is well executed; otherwise there is a big risk of getting caught in a profit squeeze when your business has to adopt a reality where an increase in the use of freelancers is a must.
Henrik Dillman, CEO of Coworks will be in the HR-Summit panel and speaker at SIME the 10-11 nov. Click below to book a meeting with him and discuss why it’s so important to have a Freelance Strategy in today’s market.