Where do freelancers fit into the new fractional world of work?

Fractional work is essentially part-time or project-based freelance work. It differs from regular freelancing in that the worker is more involved with the company. We’re all seeing it: layoff announcements every day and a saturated job market. In 2023, more than 190,000 workers in US-based tech companies were laid off in mass job cuts. As of August 2023, stats showed that the average period of unemployment was almost five months.

The tech industry—once synonymous with high salaries and stable full-time employment—has been experiencing a paradigm shift. And for some (or many), the idea of traditional full-time employment isn’t all it was cracked up to be anymore. The stability we once found through a traditional 9-5 is gone.

Enter fractional and freelance work. As layoffs continue to surge in tech, freelancing is on the rise. More and more people are deciding to go out on their own, whether by freelancing, starting an agency, doing fractional work, or consulting. For some, it’s out of necessity. For others, it’s the realization of a dream they’d previously shelved to pursue other ambitions.

The gig and fractional economy is nothing new. People have always worked this way. As a writer who’s worked side hustles and gigs for more than a decade, I’ve seen it evolve and change.

Statista estimates that by 2027 there will be 86.5 million freelancers—50.9% of the total US workforce. Contractors and freelancers can be a godsend for companies dealing with massive budget cuts and economic downturns. Businesses can leverage specialized expertise and re-scale efficiently without sacrificing flexibility or paying massive salaries or health benefits.

But this significant surge of freelancers and fractional workers also means that fewer and fewer people will be willing to re-enter the traditional workforce again. That specialized expertise will come at a higher cost. There will always be workers willing to work 9-5, but the loyalty companies once got from their employees in past generations has all but ceased to exist. I assumed I’d always work a 9-5 and keep my side hustles, but in the summer of 2023, my business partner and I decided to launch a marketing agency. One week before I was set to hand in my resignation, my job was eliminated.

In the long term, employers will need to consider how they plan to integrate freelancers and contractors into the company processes and culture.

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