Is Freelancing Right For You?

Did you ever consider being a freelancer? Well, 50% of the workforce is expected to be freelancers by 2027. Check out this video to learn all about it.

Welcome back to Bold TV with Philip Michael. Be sure to like, comment, and subscribe to Bold TV for other finance news, and all things Bold.

Joining Philip Michael today is the Co-Founder and CEO of Stoke, Shahar Erez. With so many freelance workers, companies need to be able to manage all of these independent workers. Erez is here with a solution.

Why do you think so many workers are becoming freelancers?

This trend towards freelancing has existed for 20 years so this isn’t new. The number of freelancers is growing at a rate three times faster than traditional workers. There are many reasons behind this. First, we are witnessing a generational shift. Millennials and Gen Zers expect a different social contract than older generations. They want flexibility and want to chase their passion. Second, internet and cloud computing allows people to work from anywhere and they will be able to get their true market value without being stuck with one single employer.

Did the pandemic and lockdown accelerate the trend towards freelancing?

The pandemic has definitely accelerated the trend and by 2030 freelancers will make up 60% of the workforce. Research firms like Gartner, Deloitte and McKinsey are saying there has been a 25 to 35% acceleration in the freelance workforce trend. A professor from the University of Texas predicts the Great Resignation, which is that about 40% of the workforce will quit in the next few months. These workers want a different operating model: they don’t want to commute, get paid low hourly wages and so on. They want to pursue their passions and find their own gigs.

What are some of the issues freelancers and businesses who hire them run into? How does Stoke play a role in that?

Businesses run into many issues like where do they find the freelancers they would like to hire, how do they onboard them, how to pay independent freelancers, legal compliance, who owns the IP, how do they make sure their data is protected, tax documents like 1099, workforce classification and so on. For example, the U.S. Secretary of Labor Marty Walsh says the government is going to hunker down on a gig economy. They estimate that 25 to 35% of companies misclassified independent contractors. It is important to properly classify someone as an independent worker because if they are an employee then they get benefits. All these issues are a managerial hassle for any employer. Stroke comes in and streamlines the entire process.

Is it a technology that helps with the process or an advisory role? How does it work exactly?

Stoke is a self-sell, SAS platform. The independent worker needs to put in their email and Stoke will verify their 1 KYC, which will determine if they are legally allowed to be paid, don’t belong to a terror organization, and they comply with other important guidelines and laws. Stoke then makes sure they sign the right legal documents and then will run background checks on them. Stoke will also handle all payments to reduce all back office workforce for that. All of this is within the Stoke platform.

Any tips for freelancers?

To be successful, freelancers always need to keep their brand, build their network, always search for your next customer, always bring value to the accounts you work with, make sure you are getting paid quickly and on time and don’t keep working with employers who delay your payments.

How would you qualify Stoke?

Some would call Stoke FinTech and some call us HR Tech. But Erez believes Stoke is more of a FinTech and less of an HR Tech.

Erez also shared they were able to get a $15 million investment in their first round of B Round with Funding from Battery Ventures.

Do you want to start as a freelancer? Let us know in the comments below!

Find Stoke here

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Twitter: @shaharer

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Twitter: @Philip_Michael

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