Freelance Consulting 2019 Report (4)

INSIDE 20 20 Freelancers VS consulting firms How the freelance market has doubled in 5 years The most covered functional areas FREELANCE REPORT MOVEMEON WWW.MOVEMEON.COM

CONTENTS 2020 FREELANCE REPORT 02 - Executive Summary 03 - The popularity of freelance has sky-rocketed over 5 years 04 - Freelancing is now perceived as a legitimate career choice 06 - Most covered functional areas 08 - Why do freelancers reduce their day rate? 09 - Freelancers vs consulting firms 10 - Selected Freelancers 11 - The benefits of employing freelancers 13 - Summary of successful hires - A selected range of projects WWW.MOVEMEON.COM

02 MOVEMEON 2020 OVERVIEW 62% Executive summary more professionals are open to freelance Long gone are the days of joining a company for life. Over the last opportunities vs 4 generation, moving from company to company in order to progress a years ago career has become commonplace. And the frequency of those moves has continually increased. Over the last 4-5 years, however, our data 76% and research illustrates that a new trend has emerged: the openness of highly qualified professionals to dip into freelance work - value increased control punctuating a predominantly “permanent” career. over lifestyle and 56% value increased control Just as the rise in the “gig economy” via companies like Uber and over the type of work Deliveroo has created threats and opportunities in talent attraction and workforce management, this trend at the professional level is an 42% opportunity for companies who are quick to adapt.The scale and diversity of the freelance workforce has mushroomed. “Contractors”, professionals are “Interims” and “Temps” are not new. However, historically the interested in freelance professionals interested in such opportunities have formed a career opportunities predominantly undertaking similar short term roles. The dramatic shift in the past 4 years has been the willingness of professionals within the “permanent” workforce, to undertake a freelance role, when previously the concern would have been “gaps on CVs” between permanent employment. Simply put, freelance work - either for a few months or for a few years - is perceived as perfectly legitimate. “Freelancing is perceived as legitimate and an increased level of control and flexibility is the main appeal”. Companies open to freelance, as well as permanent, staff are accessing a wider, deeper talent pool while saving costs vs hiring consultancies and other professional services firms / agencies. The implications for talent acquisition are profound. The quantity and quality of professionals who can be attracted by “project based work” is now close to half of the professional workforce. And there are huge benefits for companies tapping into this talent pool: immediate starts when capacity is stretched; deep expertise on tap; freelancers going “temp to perm” where there is a great fit (a mutual “try before you buy”) and day rates at ~10% of top tier consultancies. The following pages dig deeper into the data and interviews underpinning our conclusions and also cover the practical considerations of hiring freelancers including speed and cost. We’d like to thank the 100s of professionals who shared their perspectives with us and hope the themes arising from their insights prove thought provoking and impactful.All the best, Rich & Nick Richard Rosser & Nicholas Patterson Founding Directors of Movemeon

03 MOVEMEON.COM POPULARITY OF FREELANCING HAS SKY- ROCKETED OVER 5 YEARS Today, nearly half of all professionals are interested in freelance, this has grown dramatically compared to 1-in-4 back in 2014. Here we look at the percentage of interest today compared to 5 years ago: 50% 2014 2019 40% 30% 20% 10% 0% More professionals are available for project/interim opportunities Twice as many professionals are available for freelance roles due to this increase in interest, below we've measured the increase in views & applications per job compared to five years ago on Movemeon.com: 72 201 11 19 73% Views per job Applications per job more freelancers are available Using freelancers gives employers so much flexibility over who they work with. They can access competitive rates for experts in a certain area. André Quintanilha Freelance Consultant

04 MOVEMEON.COM FREELANCING IS NOW PERCEIVED AS A LEGITIMATE CAREER CHOICE As freelancing has become more viable, high-quality candidates have been attracted to it - 41% of freelancers on Movemeon have backgrounds from McKinsey, BCG & Bain, and 62% of freelancers have industry and consulting experience prior to freelancing. Most professionals have spent an average of 75% of their time in permanent roles, which means freelancers are less likely to want to return to full time employment, our data shows that only 27% of freelancers actively looking for permanent positions. On average consultants also plan to stay freelancing for 7.3 years. Freelancers value control over work life balance 52% of consultants support a family, which is a factor into why professionals choose to go freelance. The other factors professionals value are: Other Increased impact 1.6% 8.3% work life balance Time between projects 29.9% 11.8% financial benefits 20.5% type of work 22.8% Using freelancers gives employers so much flexibility over who they work with. They can access competitive rates for experts in a certain area. Movemeon Freelance Consultant

MOST COVERED FUNCTIONAL AREAS

06 GENERALIST POST MOVEMEON.COM MERGER GROWTH 33% INTEGRATION The range of consultants 37% 13% available are significantly higher FINANCE DUE INTERIM compared to 5 years DILLIGENCE ROLES ago 11% 21% 30% On average consultants have ORG STRATEGY expertise across 4 DESIGN main functional 68% areas 24% PROJECT MANAGEMENT 46% COST OPERATIONS BUS DEV CUTTING SALES 26% 15% 17% MARKETING IT Consultants are 12% increasingly looking 16% for roles in strategy, TRANSFORMATION transformation & project management 53%

08 MOVEMEON.COM WHY FREELANCERS REDUCE DAY RATE We've spoken to our freelancers and their reasons for reducing day rate are based on a variety of factors, Including being prepared to reduce day rates to better fit client budgets. Average day rate How freelancers would like to be paid £2,000 100% Current payment £1,500 Would like £1,000 75% £500 £0 50% 25% 0% AnMaDlairynseatc/tgAoerrs//sSSoeecinniiatoorre FiPxreodraptrMaioljcDeeRoasctHteynotoostrcrnuuhaoalrtetlescttssrey Reasons for day rate consideration CLIENT PROJECT PROJECT OTHER INDUSTRY BUDGET INTEREST LENGTH INTEREST 19% 30% 26% 21% 4% As a consultant, I care about success for the project, so I tend to look away from day rate and focus on the results or milestones. Movemeon Freelance Consultant

09 MOVEMEON.COM FREELANCERS VS 45% CONSULTING FIRMS A freelance team Its no secret that consultancies charge a high fee on costs just 45% of consulting teams, but by hiring freelance consultants you can realise a huge saving against these. a consultancy team Here are the average savings of using freelancers for a 6 month manager + 2 transformation project compared to using a consultancy team: ANALYST ASSOCIATE MANAGER 360k SAVING SAVING SAVING Employer savings 100K 100K 175K by hiring a freelance Day rate charged by seniority: team Freelancers VS Consultancy 41% Consultancy Freelancer Of freelance consultants have Analyst backgrounds in McKinsey, BCG & Associate Bain Manager Director £2,500 £5,000 £7,500 £0 If you just need the consultancy approach, use a freelancer. You can get the quality of McKinsey without the invoice. Alessandro Santo Freelance Consultant

FREELANCERS10 MOVEMEON.COM SELECTED FREELANCERS Phil Carrivick I am an experienced strategy and M&A professional with ATK and LEK consultancies. In the last 2 years, I have moved into independent consulting working on a variety of projects; from growth strategy with a VC backed e-learning company, to customer strategy for the National Grid. André Quintanilha (I spent seven years of my career working with management consulting for Accenture (2008 - 2015) with Fortune 500 companies. After an MBA in China I’ve quit consulting and founded two start- ups from scratch. Alongside personal ventures, I have started to consult on a freelance basis. Alessandro Santo After an MBA and working as a Case Team Leader at Bain, I decided to move

11 BENEFITS BENEFITS OF EMPLOYING FREELANCERS Freelancers point of view The takeaway here is, you can often get more “bang for your buck” as independents are likely to have experience from a range of sectors/projects they can draw upon. - Phil Carrivick Using freelancers gives employers so much flexibility over who they work with. They can access competitive rates for experts in a certain area and can also rely on the freelancer to get their hands dirty. - André Quintanilha If you just need the consultancy approach, use a freelancer. You can get the quality of McKinsey without the invoice. - Alessandro Santo Employers point of view Annual reports are intended to give shareholders and other interested people information about the company's activities and financial performance. - Name

FREELANCE PROJECTS Summary of successful hires

13 MOVEMEON.COM A SELECTED RANGE OF PROJECTS PRIVATE EQUITY CORPORATE PMI Consultant Transformation Director €1500pd £1200 4 months 1 year Hired: Hired: Description of PE Description of Corporate CONSULTANCY STARTUP CDD Consultant Strategy Analyst £700pd Day rate: £400 1 week 3 months & extended for an additional 3 months Hired: Hired: Consultant (ex)McKinsey Description of consultancy Description of startup & what they were looking for Im here to support our freelancers looking for exciting opportunities & support employers looking for quality freelancers. Don't hesitate to drop me an email: [email protected] Max Tollitt - Freelance Team Lead

Need help with a project? MOVEMEON Home to a community of 3000 freelancers. successful hires include, PE/VC, Startups/Scaleups, Corporates & Consultancies Hire top freelancers, fast WWW.MOVEMEON.COM - [email protected]