The collapse of Silicon Valley Bank (SVB) sent ripples of uncertainty through the fintech community. Faced with economic instability and funding concerns, many companies are exercising caution in their hiring decisions, opting to hold off until greater stability emerges.
However, amidst these challenging times, an unintended and interesting trend has emerged: 73% of US workers are planning to freelance this year. Seeking to bolster their financial security and embrace remote work opportunities, professionals are turning to freelancing as a means to supplement their income.
For fintech companies navigating the complexities of the current job market, the freelance economy presents a promising solution – the “rent fast, hire slow” model. This approach leverages freelancers to buy time while maintaining operational agility and excellence.
Unlike the lengthy recruitment process for full-time roles, onboarding qualified freelancers can occur in as little as 48 hours, providing fintech companies with the flexibility to adapt quickly and succeed using exceptional, rented talent. The rising popularity of freelancing further solidifies its acceptance as a mainstream and valuable augmentation to existing teams.
In this transformative landscape, fintech companies must consider the following key aspects when hiring talent today:
1. Speed
On-demand talent is readily available to step in and assist at a moment’s notice. Thanks to agencies like 10x Management that pre-vet talent, companies can be assured of getting the right person with the right skill set, eliminating the time-consuming hiring process and promoting efficiency.
2. Adaptability
Exceptional freelancers possess a unique ability to seamlessly integrate into different companies, providing immediate value through their expertise and fresh perspectives. Their past experiences in diverse settings enrich their contributions, making them valuable assets for fintech projects.
3. Cost
Engaging freelancers helps mitigate ancillary costs associated with full-time employees, such as payroll taxes, insurance, and PTO. In some cases, when factoring all relevant FTE costs, hiring a freelancer charging $150/hour may prove more cost-effective than a full-time employee earning $150k/year while delivering the same amount of work. This cost-efficient approach allows fintech companies to access high-level tech talent without the long-term commitment.
4. Low Commitment
During uncertain economic times, maintaining low financial commitment is prudent. Freelancers offer this advantage as they can be engaged and disengaged with minimal strings attached. Unlike W2 employees, severance costs associated with freelancers are substantially lower, making them a favorable option for short-term projects or experimentation before committing to more significant endeavors.
Navigating Today’s Hiring Landscape Through Experimentation
As fintech companies grapple with economic uncertainties, experimentation becomes a crucial element of adaptability. While cost-cutting measures like staff layoffs may be the immediate response, embracing new avenues for peak performance should be a priority. Freelancers offer a dynamic and flexible approach to achieve these objectives.
By exploring the power of freelancers through small projects, companies can assess their fit with organizational culture and evaluate the value they bring before making substantial commitments.
The transformative nature of the job market demands a strategic shift in talent acquisition for fintech companies. Embracing freelancers as a valuable resource, through the “rent fast, hire slow” model, can empower companies to navigate uncertainty with agility and remain at the forefront of innovation in the fintech industry.