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Introduction
The growth of the freelance economy has been one of the most significant trends in the global workforce in recent years. According to a report by Upwork, the number of freelancers in the US alone has increased by 22% since 2019, and it’s expected to continue to rise. The rise of the freelance economy has created new opportunities for businesses to tap into a global pool of talent, but it also presents new challenges in terms of managing this diverse and dispersed workforce. In this blog post, we will explore how SAP is helping businesses navigate the freelance economy and the opportunities and challenges that come with it.
Opportunities of the Freelance Economy
Access to a global pool of talent
One of the significant benefits of the freelance economy is that businesses can access a global pool of talent. With the rise of remote work, businesses are no longer limited to hiring employees in their immediate vicinity. This opens up opportunities to tap into the expertise of professionals from around the world. For businesses, this means that they can access the best talent, regardless of location. For freelancers, this means they can work with clients from anywhere in the world, expanding their opportunities and earning potential.
Cost savings
Hiring a freelancer can be significantly more cost-effective for businesses than hiring a full-time employee. Freelancers are typically paid on a project-by-project basis, meaning that businesses only pay for the work they need to be done. This eliminates the need for businesses to provide full-time salaries and benefits, such as health insurance and paid time off, which can be a significant cost savings.
Flexibility
The freelance economy offers both businesses and freelancers greater flexibility in terms of how and when they work. For businesses, this means they can hire freelancers on an as-needed basis, ramping up or down as their needs change. For freelancers, this means they can work on their own schedule and take on projects that align with their interests and availability.
Challenges of the Freelance Economy
Managing a dispersed workforce
Managing a freelance workforce can be challenging, particularly when they are dispersed across the globe. Communication and collaboration can be difficult, and it can be challenging to keep track of who is working on what project. This can be particularly challenging for businesses that are used to managing a centralized workforce.
Ensuring quality
Hiring freelancers can be a bit of a gamble for businesses. It can be difficult to assess the quality of work that a freelancer will deliver, particularly if they are new to the platform or industry. Businesses need to take steps to ensure that the freelancers they hire have the skills and experience necessary to complete the project to a high standard.
Maintaining a consistent brand
When working with freelancers, it can be challenging to maintain a consistent brand voice and image. Freelancers may have their own unique style and tone, which may not align with the brand’s messaging. It can be challenging to ensure that all freelancers are on the same page and are delivering work that aligns with the brand’s values and mission.
SAP and the Freelance Economy
SAP is a software company that provides enterprise software to manage business operations and customer relations. SAP has recognized the challenges that businesses face when managing a freelance workforce and has developed solutions to help businesses navigate the freelance economy.
SAP Fieldglass
SAP Fieldglass is a cloud-based platform that helps businesses manage their contingent workforce, including freelancers, contractors, and temporary employees. The platform provides businesses with a centralized view of their entire workforce, making it easier to manage and track their performance. SAP Fieldglass also provides businesses with tools to manage their freelance workforce, including:
Sourcing and onboarding
SAP Fieldglass helps businesses source and onboard freelancers, making it easier to find the right talent for the job. The platform provides access to a global network of freelancers, making it easier for businesses to find the right person for the job. Once a freelancer is identified, SAP Fieldglass streamlines the onboarding process, ensuring that all necessary paperwork is completed and that the freelancer is ready to start work as quickly as possible.
Project management
SAP Fieldglass provides businesses with tools to manage their freelance workforce, including project management tools that help businesses track the progress of their projects. The platform provides real-time visibility into the status of each project, making it easier for businesses to ensure that work is being completed on time and to a high standard.
Vendor management
SAP Fieldglass helps businesses manage their vendors, including freelancers, contractors, and temporary employees. The platform provides businesses with tools to manage their vendor relationships, ensuring that vendors are meeting their obligations and delivering work to a high standard.
Compliance management
SAP Fieldglass helps businesses ensure compliance with labor laws and regulations. The platform provides businesses with tools to manage their compliance requirements, including tracking hours worked, managing overtime, and ensuring that all necessary paperwork is completed.
SAP Ariba
SAP Ariba is a cloud-based procurement platform that helps businesses manage their sourcing and procurement activities. The platform provides businesses with a centralized view of their procurement activities, making it easier to manage and track their spending. SAP Ariba also provides businesses with tools to manage their freelance workforce, including:
Sourcing and onboarding
SAP Ariba helps businesses source and onboard freelancers, making it easier to find the right talent for the job. The platform provides access to a global network of freelancers, making it easier for businesses to find the right person for the job. Once a freelancer is identified, SAP Ariba streamlines the onboarding process, ensuring that all necessary paperwork is completed and that the freelancer is ready to start work as quickly as possible.
Project management
SAP Ariba provides businesses with tools to manage their freelance workforce, including project management tools that help businesses track the progress of their projects. The platform provides real-time visibility into the status of each project, making it easier for businesses to ensure that work is being completed on time and to a high standard.
Vendor management
SAP Ariba helps businesses manage their vendors, including freelancers, contractors, and temporary employees. The platform provides businesses with tools to manage their vendor relationships, ensuring that vendors are meeting their obligations and delivering work to a high standard.
Compliance management
SAP Ariba helps businesses ensure compliance with labor laws and regulations. The platform provides businesses with tools to manage their compliance requirements, including tracking hours worked, managing overtime, and ensuring that all necessary paperwork is completed.
SAP SuccessFactors
SAP SuccessFactors is a cloud-based human capital management platform that helps businesses manage their workforce. The platform provides businesses with a centralized view of their workforce, making it easier to manage and track employee performance. SAP SuccessFactors also provides businesses with tools to manage their freelance workforce, including:
Performance management
SAP SuccessFactors helps businesses manage the performance of their freelance workforce, providing tools to set goals, track progress, and provide feedback. The platform provides real-time visibility into the performance of each freelancer, making it easier for businesses to ensure that work is being completed to a high standard.
Learning and development
SAP SuccessFactors provides businesses with tools to provide training and development opportunities to their freelance workforce. The platform provides access to a range of online courses and resources, making it easier for freelancers to develop their skills and knowledge.
Compliance management
SAP SuccessFactors helps businesses ensure compliance with labor laws and regulations. The platform provides businesses with tools to manage their compliance requirements, including tracking hours worked, managing overtime, and ensuring that all necessary paperwork is completed.
Challenges of the freelance economy for SAP
While the freelance economy presents numerous opportunities for businesses, it also presents a number of challenges for SAP. These challenges include:
Integration
Integrating freelance workers into a company’s existing systems and processes can be challenging. Companies need to ensure that their existing systems and processes can accommodate freelance workers, and that they are able to integrate seamlessly with the company’s existing systems.
Risk management
Hiring freelancers can be risky, as companies have less control over the quality of work and the behavior of freelance workers. Companies need to ensure that they are able to manage these risks effectively, and that they have appropriate safeguards in place to protect their business.
Compliance
Compliance can be a challenge when working with freelancers, as labor laws and regulations can vary between different countries and jurisdictions. Companies need to ensure that they are compliant with all relevant labor laws and regulations, and that they are able to manage compliance effectively across their freelance workforce.
Examples of SAP and the freelance economy
UPS and SAP Fieldglass
UPS is a global logistics and transportation company that uses SAP Fieldglass to manage its contingent workforce, including freelance workers. By using SAP Fieldglass, UPS has been able to streamline its hiring process, reduce its costs, and improve the quality of its workforce. The platform has also provided UPS with real-time visibility into the status of its projects, making it easier to manage and track its workforce.
Colgate-Palmolive and SAP Ariba
Colgate-Palmolive is a global consumer goods company that uses SAP Ariba to manage its sourcing and procurement activities, including the hiring of freelance workers. By using SAP Ariba, Colgate-Palmolive has been able to source and onboard freelancers quickly and efficiently, reducing its time to hire and improving the quality of its workforce. The platform has also provided Colgate-Palmolive with real-time visibility into its spending, making it easier to manage and track its procurement activities.
Deloitte and SAP SuccessFactors
Deloitte is a global professional services firm that uses SAP SuccessFactors to manage its workforce, including its contingent workforce of freelance workers. By using SAP SuccessFactors, Deloitte has been able to manage the performance of its freelance workers more effectively, providing them with feedback and development opportunities to improve their skills and knowledge. The platform has also provided Deloitte with real-time visibility into the performance of its freelance workforce, making it easier to manage and track their performance.
Conclusion
The freelance economy presents both opportunities and challenges for businesses, and SAP is well-positioned to help businesses manage their freelance workforce effectively. By leveraging its suite of cloud-based solutions, including SAP Fieldglass, SAP Ariba, and SAP SuccessFactors, SAP can help businesses source and onboard freelancers, manage their projects and vendors, and ensure compliance with labor laws and regulations. While there are challenges associated with the freelance economy, businesses can mitigate these challenges by using SAP’s tools and solutions effectively.
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