The Great Resignation and Freelance Boom: Which Came First?

The COVID-19 global pandemic has had a massive effect on nearly every aspect of our lives. One consequence that no one saw coming is the voluntary mass exodus of employees from their jobs. The Great Resignation has taken place concurrently with a freelancer boom, and this has led many to believe there’s a correlation. 

It's logical to assume a connection, but the reality is much more complex than most realize. By recognizing the underlying factors of both events — and how they ended up playing on one another — businesses can better prepare themselves for an uncertain future. 

The Paradox of the Great Resignation

To fully understand the severity of the current employment reality of America, one need only look at the statistics. Nearly 4 million people left their jobs in May, April and June 2021 — that’s 4 million each month. Even more surprising is the fact that 95% of employed Americans are thinking of doing the same. 

These numbers are paradoxical to what we’d typically expect. High resignation rates normally occur when there is an abundance of people working. And now, with continuing labor shortages, it's reasonable to expect people to stay in their jobs. This isn’t what's happening, however, and it’s leaving employers at a disadvantage during the Great Resignation. 

The Freelance Boom: A Long Time Coming

Less than a year into the pandemic, an article from Forbes painted the picture of a new reality: Pandemic Fuels a Freelancing Boom. The numbers don't lie. A full 12% of America's workforce began freelancing after COVID-19 struck. In fact, half of the workers from Gen-Z took on freelance work between September 2019 and September 2020.

However, the current freelancing boom can't be attributed entirely to the pandemic and Great Resignation. Forbes also released an article — Full-time Freelancing Lures More Americans — months before the COVID-19 pandemic took hold. In fact, 35% of American workers had freelance jobs by 2019.

Even if we go back to 2011, The Atlantic told of a freelance surge that would be “the industrial revolution of our time.” The Great Resignation has certainly influenced the number of freelancers in the workforce, but what we’re seeing now has been a long time coming. 

What This Means for Business

The Great Resignation and the freelancer boom occurred independently of each other. Nevertheless, each has made a significant impact on the other. We’re currently mired in a situation that these two events have combined to create, so it’s important that businesses adjust their operations to fall in line with the new reality. Here’s how: 

• Continue offering remote work: A major contributor to The Great Resignation is each employee's realization that they can do most of their work from home. If you can offer remote work without sacrificing efficiency, doing so will help reduce quit rates and attract new talent. 

• Understand that talent is everywhere: As many workplaces have moved to a hybrid model, it’s become apparent that talent is everywhere. Businesses that offer remote positions make work more accessible for minorities and parents with children, but they can also attract talent around the globe. 

• Communicate direction: The pandemic seriously affected the direction of many businesses, but for some, no course shift was necessary. Either way, communicate this to employees. They need to know where a company is heading to feel secure in their positions. 

The full consequences of the pandemic, The Great Resignation, and the freelancer boom likely won’t be apparent for years. Until that time comes, businesses must learn to respond quickly to this dynamic situation. Startups are in a uniquely powerful position, however, because they can build their business practices around this reality rather than trying to adjust to the reality. 

 
Big things are coming, and the organizations that can respond appropriately will succeed. 

At Arch Collective, we help Post-Series B funded startups that already have a marketing leader or team in place gain access to the right freelance marketing talent.  Set up a 15-minute introductory call with our on-demand marketing team so that you can focus on building your business instead of looking for the right freelancer.