FCSA: Opportunities for freelancers in 2012

As tough times set in for 2012, the flexible workforce has the opportunity to grow and become more important, according to the representative group of suppliers to the contract industry.

Stuart Davis, chairman of the Freelancer and Contractor Services Association (FCSA), writes for UKTECH on what the coming 12 months could bring:

This year, as unemployment returns to levels last seen in the 1980s, the flexible workforce is going to become more important than ever before. Like the 1980s, when Norman Tebbit encouraged the UK workforce to 'get on their bikes', we are already seeing people responding to the situation by entering the self employed market. During the three months prior to November, 101,000 people registered themselves as 'self employed' bringing the total number of self employed in the UK to a new high of 4.2 million.

As a result of the economic situation, the 1980s also saw the self-employed and freelance sector really take off. In response to Tebbit's call, people who had lost their jobs did get up and go out and seek work, often having to contract out their services rather than finding permanent roles in those difficult days. This often meant great risk and sacrifices such as moving their families to other parts of the country where their services were needed. Still, they knew they had to think more broadly and creatively if they were to find work in such a challenging environment and many who chose to join the flexible workforce soon started to feel the benefits of doing so.

Flexible workforce

In the last 30 years much has changed and whether by choice or by circumstance, more people are choosing to enter the flexible workforce. As a group, they are flexible, adaptable and quick to seize opportunities, making them increasingly vital to the UK economy. In 2012, I believe they will be more important than ever as an essential force on the road to economic recovery.

To harness the power of the flexible workforce however, the Government must ask itself whether this powerful group is getting the support and recognition it needs to lead us out of the current economic mess? It could be argued that the increase in self employed workers should be commensurate with a better understanding of the flexible workforce market. However, the evidence of recent years suggests that amongst many decision makers that is sadly not the case.

Burdens

At the FCSA, one of our principal work activities in 2012 will be to continue our campaign for the rights of freelancers, contractors and the self employed so that they can be free to get on with their work and not worry about administrative burdens. Currently, there are too many restrictions facing freelancers such as over-elaborate levels of red tape and a lack of understanding of the diversity of the workforce from across the political spectrum.

One obvious example is the Agency Workers Regulations (AWR) which, when it became law in October 2011, forced agencies and service providers to adapt their work practices. At FCSA, we would be the first to argue that vulnerable workers need the protection provided by AWR. However, the characteristic mistake of Government (both at a UK and EU level) of assuming that one size fits all, has meant that a well-meaning piece of legislation has caused a huge headache to many in the professional flexible workforce. 2012 will be a defining year when we will be able to judge the true impact of the regulations.

Opportunities

It is vital that the flexible workforce is helped and encouraged in every way and its value recognised. 2012 is of course Olympic year and what better way to illustrate the value of the flexible workforce than the fantastic sporting and transport infrastructure that has been built on time and looks spectacular. This would not have happened without the efforts of the flexible workforce who in the construction industry are so vital. Everyone involved in the sector should be making this important point this year so that the achievements of the workforce are recognised.

The chances are that if the economic situation worsens and unemployment figures keep increasing we will see a further rise in flexible workforce numbers in 2012. Whether forced into becoming self employed through the loss of a permanent job or choosing to go down that route, new entrants will be faced with quite a few challenges. The aim for 2012 should therefore be to ensure that new entrants to the market do not get bogged down by regulation and put off working in this most creative and fulfilling market.

The value of the freelancer must be driven home time and time again to Government and stakeholders who influence the choices that people make.

A good example might be those who give careers advice, whether to a newly unemployed person or at school, college or university level should have a strong understanding of the benefits of the flexible workforce. They need to understand that it is an extremely worthwhile career with many advantages over permanent roles. All those with an interest in promoting freelancing and contracting should be speaking to training and skills providers, schools and colleges to educate them about the benefits.

So, 2012 will be a difficult year but one where we believe the value of the flexible workforce will start to be appreciated more, but only if all those in the industry keep banging the drum hard to all and sundry. Certainly we at the FCSA will be doing our bit, particularly in the taxation field as our representatives fight the flexible workforce's corner on the various Treasury committees considering the integration of PAYE-NICS and IR35 – two other issues that may make significant progress in 2012.

Stuart Davis, Chairman of the FCSA.

The FCSA was established in 2008 in response to a stream of proposed regulation which, the founders of the group felt, revealed a lack of understanding from Government as to how the flexible labour market operates. Original members include giant, Brookson and Parasol.