New research has uncovered a payment crisis among freelancers which, it is claimed, has the potential to generate a national talent shortage in the coming months.
At the heart of it lie constant struggles to get paid, with a quarter of 500 who were questioned claiming they are currently considering taking on permanent roles as a result.
In fact, only 16 per cent of them said that they never had to chase late payments, while 7 per cent said that they routinely have to chase between 86-100 per cent of their invoices.
Overall, more than half are having to wait a month or more for each of their invoices to be paid, while one in five said that they are used to waiting at least two months for payment.
With freelancing being their sole means of income, this is putting an incredible financial – and emotional – strain on the workforce with a quarter saying that the situation is worsening.
Implementing a system of faster, reliable payment – whether through escrow or other means – for this integral sector of the UK’s workforce could help secure their future
Interestingly, while there was no difference in the experiences of men and women, there even seems to be a north-south divide with considerably more in the north having problems compared to those in the south.
JJ Rathour, CEO of WondayPay, the freelance payment platform that commissioned the research, said freelancers had become an increasingly important part of the workforce, “providing SMBs with the skills and services that they need to scale, evolve, and reach their full potential”. He said this was integral for businesses who can’t afford to maintain a permanent workforce.
“Without reliable payment, the position of many freelancers simply isn’t sustainable,” he said. “Implementing a system of faster, reliable payment – whether through escrow or other means – for this integral sector of the UK’s workforce could help secure their future. No-one should have to wait months to be paid for the work that they have done.
“Freelancers matter. Their loss has the potential to carry serious repercussions for the wider business world. It’s of benefit to us all to ensure that freelancers receive the payment they need in order to sustain their businesses.”
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