The Freelance Future of Local Economic Development

A Human Resources Profession is warning the IT industry that by 2020 about 50% of a typical company staff will be freelancers, not members of the core staff. Though not mentioned in the article, ObamaCare which kicks in at 50 employees, is an incentive for companies keep staff at 49 or lower. To keep the staff under the 50 person ceiling, more and more companies will use independent contractors – freelancers to grow.

Human Resouces Application Speaking to Computer Weekly, Jason Averbook, chief innovation officer at cloud consulting firm Appirio, said the changes “will create headaches” as technology departments scramble to deliver new services to a dispersed workforce. “By 2020 there will be upwards of 50 percent of employees [in a typical company] who are freelance and end up working for five or six different companies at the same time,” he said.

This forecast could have an impact on economic development in Nevada County. In fact, it could be an advantage, all those freelancers have to live somewhere, why not in a lovely place like Nevada County. We could become the freelance mecca of California. By 2020 most companies will be in the Cloud and employees can work from anywhere if they have access to the internet cloud, which requires a broadband connection for maximum efficiency.

Building an economic development plan that is trying to create the past will not succeed. The plan needs to look forward, to take advantage of the changing demographics, advances in communication technology, and how companies will be force to find alternative practices that allows them to avoid smothering regulation and punitive taxes. The use of freelances is one of the emerging work around strategies, according to human resource professionals. Stay Tuned.

About Russ Steele

Freelance writer and climate change blogger. Russ spent twenty years in the Air Force as a navigator specializing in electronics warfare and digital systems. After his service he was employed for sixteen years as concept developer for TRW, an aerospace and automotive company, and then was CEO of a non-profit Internet provider for 18 months. Russ's articles have appeared in Comstock's Business, Capitol Journal, Trailer Life, Monitoring Times, and Idaho Magazine.
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