Companies have begun hiring again, but instead of bringing on full-time employees, they are relying more heavily on freelance contractors that don’t receive health insurance and other benefits. As the economy rebounds, some employment experts believe contingency jobs will be the new “normal.”
The employment law firm Littler Mendelson released a report last year called “The Emerging New Workforce,” which predicted that 50 percent of new, post-recession jobs will be contract positions, said MSNBC.com. Monster.com saw a 46 percent increase in contract job listings in March, according to MSNBC.
Companies save money by hiring on a contract basis, but workers lose the security of a permanent job, including health benefits, paid sick and vacation days, and company contributions to retirement savings accounts.
Faced with this new economic reality, long-term freelance workers should begin thinking of themselves as small businesses. Some issues to consider : How do you formalize a small business? What legal issues are involved? How do you market yourself or organize a bookkeeping system? Where can you find insurance?
Starting a small business takes time and effort but can be well worth it in the long run.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to