With the disrupting events and humanitarian crisis in the recent years, the job market as we know it has been going through tremendous transformations. While ways of working such as remote work may have been considered as impossible before pandemic, now it has become the standard for many companies around the world, providing flexibility to employees.

Many of us have shifted from a full time job on site to a more exploratory approach such as freelancing, the numbers say it: the number of full-time freelancers has doubled since 2021 (Forbes, 2024).

In a survey conducted by McKinsey in the US (McKinsey’s American Opportunity Survey (AOS) 2022) it was revealed that 36% of the employed respondents identify themselves as independent workers, with 72% of the independent workers working only one job, so not having a permanent employment engagement.

All these independent workers display a similar characteristic: they are optimistic about their future and the prospective economy, despite some of the disadvantages they need to deal with: access to affordable healthcare, uncertainty of employment opportunities (McKinsey, 2022).

In Europe, in a survey run by Boston Consulting Group in 2022, the findings were pretty much similar: growing number of freelancers compared to previous years, majority of the surveyed freelancers being independent workers for less than 4 years (BCG, 2022).  Such changes in the dynamics of work force were nevertheless influenced by the pandemic and the chance people grabbed to claim their flexible work arrangements and to find more meaningful roles.

The areas where we can see increased number of freelancers are spanning the digital fields (SEO, UX, DevOps, web design), but also in project management the numbers raised: 63% between 2020 and 2021 (BCG, 2022).

In the US, the domains covered by freelancers seem to be more diverse, from the jobs paying less such as delivering passengers, take-out food, or packages, to high income jobs requiring skilled professionals such as lawyers, accountants, actors, writers, influencers, travelling nurses, and a variety of advisers and specialists. (McKinsey, 2022).

Why people are choosing freelancing in Project management

When we look for reasons why people consider this kind of work arrangement, freelancers place the flexibility and independence on their top priority: 95% of freelancers in France (BCG, 2022), respectively 24.9% of freelancers in the US (McKinsey, 2022).

In Europe, other factors influencing freelancers to pursue independent work are: possibility of choosing the work location, work in line with their personal values and possibility to choose their clients and projects (BCG, 2022).

 

 

In Project management, the main driver for stepping in the challenging role of a freelancer is the freedom of being your own boss, setting up the career steps you see fit, most adapted to your skills and experience, instead of waiting for a promotion which never happens due to biased and/or subjective evaluations: “Freelance project management sounds like freedom. You set your rates, pick your projects, and work how you want. The demand is there, and if you position yourself right, you can own your career instead of waiting for promotions” (Jeremiah Hammon, PMP).

Of course flexibility, just like mentioned above, plays a crucial role in deciding to become a freelancer in Project management: “When I was working for myself, one of the big advantages was the flexibility – you certainly don’t get the same level of freedom in an employed role! You can say yes or no to projects, and you can work the hours that suit you best” (Elizabeth Harrin, FAPM).

“Advantages are that you have more freedom of choice of what projects you want to work on and have a bit more room to negotiate your rates. You also can have more freedom in how you manage your time depending on how your contract is set up and you can discuss that with your client. Overall, your monetary compensation should be higher than a full-time employee” (Benjamin Chan, PMP).

Going on your own as a freelancer in Project management may also be an opportunity to obtain new experience, diversify your portfolio with projects from other domains you have not worked in before and build your own brand and reputation, as you advance on the learning curve for such type of work.

The shiny side of freelancing in Project management

As a freelancer myself in Project management I can acknowledge that the intrinsic motivation you would get is one of the best rewards in such work arrangement. The feeling that you succeed in what seemed like an unknown territory, all on your own, without the rigid agreement of a permanent contract, working according to your values and moral compass is something you will want to hold on to for a long time. All these achievements, smaller or bigger, would be yours alone, all thanks to the hard work, self improvement, dedication and consistency you invested in your freelancing work.

On top of the flexibility this kind of work provides, you will also have the chance to expand your network, not only for job opportunities, but for meeting other freelancers and potential clients: 

“The freelance economy is poised for explosive growth. Studies predict 50% of the US workforce freelancing by 2027. Freelancing platforms will become more sophisticated, connecting skilled individuals with a global marketplace of opportunities”(Ray Culver, CEO CW Solutions Group, Forbes 2024).

In fact, as a freelancer you would always be looking for new chances to grow your network, build you credibility and reputation “what helped me to master the learning curve was connecting with other freelancers and industry professionals for insights based on their experiences” (Julia Karavayeva, PMP)

Your experience and reputation go hand in hand with the time you spend to develop new skills, learn about new technologies, keep up with the industry standards and basically build a solid knowledge around business models and services since now as a freelancer in Project management, you are not only executing projects, but aim for a potential role in the strategy making as an advisory expert.

It is important to challenge your comfort zone and pick up fast on the new trends in order to stay relevant in the freelancing world and such skills need to be developed in a more alert rhythm than for a regular employee, such skills being acknowledged by the following C-level executives:

Thomas Jajeh Chief Digital officer, Randstad: “AI will revolutionize freelancing in the coming years. AI-powered tools automate repetitive tasks, enabling a focus on high-value work and creating new opportunities to develop AI-powered products and services. We expect increased corporate adoption of freelance as demand for specialized skills grows and governance for freelance work takes shape.” (Forbes, 2024)

Glen Hodgson CEO Free Trade Europa: “We’ll see rapid adoption of talent clouds and elastic teams. More professionals want freedom, flexibility and influence over their work. Organisations see the productivity and efficiency gains realised by utilising pre-vetted open talent solutions. Expect exponential growth across the board.” (Forbes, 2024).

It is known that due to certain skills which are hard to come across otherwise, clients are willing to pay freelancers more than regular employees and topping that with the lower level of taxation for freelancing work, the freelancers in Project management may expect higher income. As a matter of fact, the higher income which is reported by many freelancers in Project management is also an outcome of the time and money spent in the self development “Digital workers spend about a half day per week on their training and development” (BCG, 2022).

Nevertheless succeeding as a freelancer implies a reset of the mindset, meaning transitioning from the role of project execution, to actually managing your own business: “I think the biggest initial challenge is the change in mindset required. You don't wait for the project to be assigned to you and instead you need to shift to a hunter mentality. Some of the areas that I think you need to have in place to drive this are to have a strong brand, reputation, and network to compete for clients” (Benjamin Chan, PMP).

As we find ourselves in a new era of Project management, where Agile and hybrid approaches are sought after, the success of your freelancing business also depends on your own ability to adapt to context, understand your clients’ expectations and seize the opportunity: “In France, 69% of tech and data freelance workers use Agile methodology, as 80% of them consider it to be an efficient way of working” (BCG, 2022).

The hurdles of freelancing in Project management

Whenever you decide to become a freelancer in Project management, you would need to be aware of the changes and more responsibilities that come with this type of work: you are no longer a sole contributor to a business, but you own a business, your business. This shift comes not only with the shift in the mindset, but in the responsibilities and multiple roles you would need to cover: HR, accountant, marketing specialist, labour law specialist, IT and technical support, CEO, etc.

“You are running your own company now and need to run it as such! Some people neglect the administrative items that might be needed including incorporation, taxes, self-payment, health benefits, and continuous learning” (Benjamin Chan, PMP).

One of the toughest change you would need to consider is that you will be required to know the local labour law, regulations and legislation around the type of freelancing you choose. To support you, you may rely on local organizations which may be able to help you start your own business and advise you for the first couple of months, but eventually you would need to be up to date and ready to run all these by yourself: “I also found that it is important to price jobs taking into account the level of admin you have to do around the actual work, for example, preparing quotes and contracts, doing revisions, providing references, reporting, invoicing and ad hoc emails to the client about the job itself, rather than deliverables from the job. All this work of running your own business can take more time than you expect” (Elizabeth Harrin, FAPM).

On top of the challenges such as contract negotiating, awareness of unlawful contract clauses, one of the main drawbacks while being freelancer, in any type of domain, is the constant grind to find new clients and new contracts: “One of the challenges with freelance work is that you are completely responsible for filling your time with bookings and projects, and that can be a worry if you aren’t sure where your next job is coming from. If you’re just starting out, think about how you can build a network of contacts who might be able to recommend you for projects or point you in the direction of interesting opportunities”  (Elizabeth Harrin, FAPM)

“client acquisition has been and remains the most challenging aspect for me. Building a roster of clients in an uncertain market, especially during your first year freelancing, really takes all your time and effort” (Julia Karavayeva, PMP).

 This is where your network plays a crucial role in building your reputation, keeping track of your accomplishments, finding new opportunities for collaborations and connecting with prospective clients.

Another important aspect when doing freelancing work in Project management is your investment in your own development and growth: as mentioned earlier, you would need to be ahead of your competitors and regular employees in order to be selected for a contract. Hence be prepared to spare a part of your income for acquiring training, certifications, courses, conferences, learning materials, etc.

It may seem like a lot of new responsibilities and a difficult change to handle, especially in the first months, but the advantages of being a freelancer, the rush of adrenaline when you sign a new contract or deliver an engagement successfully, will make up for all the other disadvantages and strenuous moments.

In the end being your own boss, drive the career you envisioned for yourself and collaborate with people who share the same values and appreciate your work and dedication are all very good reasons to keep fighting and growing your own business in freelancing.

And considering the statistics, the demand for freelancers would increase over the next years, coupled with the need of more Project management professionals (expected to reach 2.3 million people each year by 2030, PMI, 2023), it looks like freelancing in Project management is a good bet in the new landscape of job market: “Layoffs and RTO policies slowed freelancing’s growth but the core driver remains. Top talents seek independence, project choice, and personal time management. We expect to see greater acceptance of hybrid teams and a continued rise in freelance work” (Ramiro Gonzalez Forcada, CEO The Flock, Forbes, 2024).

 

References:

1. Younger, J. (2024) The Outlook for Freelancing: Global leaders share their views

https://www.forbes.com/sites/jonyounger/2024/07/02/the-outlook-for-freelancing-global-leaders-share-their-views/

2. Dua, A., Ellingrud, K., Hancock, B., Luby, R., Madgavkar, A., Pemberton, S. (2022) Freelance, side hustles, and gigs: Many more Americans have become independent workers, McKinsey & Company
3. Boston Consulting Group (2022) Freelancing in Europe 2022: Companies can learn a lot from freelancers https://www.bcg.com/press/9february2022-freelancing-in-europe-en
4. PMI (2023) Global Project management: Job trends 2023
5. Quoted Project management professionals:

• Jeremiah Hammon https://www.linkedin.com/in/jeremiahrhammonjr/
• Elizabeth Harrin https://www.linkedin.com/in/elizabethharrin/
• Benjamin Chan https://www.linkedin.com/in/pmcoachben/
• Julia Karavayeva https://www.linkedin.com/in/juliakaravayeva/