Recently graduated engineers no longer take their shiny new bacehlor of science degrees to their first post-college job expecting to work at that company throughout their careers. The project-oriented nature of a lot of engineering work fits nicely into the gig-economy model, where an employer hires individuals with the specific skills that a particular project requires and only for the project’s duration.

Engineering consulting firms and contract employment agencies have for years provided project-related engineering expertise, but these employees generally are not counted as freelancers. Sixty-five percent of career freelancers consciously and voluntarily choose to freelance - who are they, and what are the positives and negatives of this career path.?

Terminology: Gig Worker? Freelancer?

The fluidity of the gig economy - one of the characteristics that appeals to many workers - makes defining it about as easy as nailing jello to the wall. This difficulty means consumers of gig-economy information need to understand how statistical sources count and sort respondents. Is anyone who earned money outside of a traditional job a gig worker, even if they also have a traditional job? Is a freelancer the same thing as an independent consultant?

Nation1099.com, a website devoted to workers who work for themselves, separates workers into two groups: W-2 and 1099, using the IRS forms workers file to tell the government how much money they earned. This distinction is useful but a bit messy, since some W-2 employees also earn money on the side that they report on a 1099 form.

What do 1099 filers prefer to be called? Either freelancer or independent consultant are better than gig worker. Both terms describe people who provide a wide range of activities and services, where the individual worker controls the choice of work and schedule, among other aspects of their engagement in the workforce. People who sign up with online platforms that help employers and potential employees find each other are more difficult to sort, but are generally considered independent operators.

Statistics

The conventional wisdom about the growth and future of freelancing is that about one-third (36%) of the U.S. workforce is part of the freelance economy and that this segment will constitute over half of the workforce in 2027. These numbers come from Freelancing in America, an annual report sponsored by Upwork and the Freelancers Union. Anyone who reported income on a 1099 form counts as a freelancer regardless of other employment, so the 50% prediction might overestimate the future frequency of career freelancing.

The U.S. Bureau of Labor Statistics issued a report on contingent and alternative work arrangements in June 2018, which estimated that 11% of all freelancers are currently career freelancers. Nation1099 analyzed a pile of gig-economy data sources and arrived at the same number of current full-time freelancers. Rather than prognosticate about future percentages, Robert Maguire, writing for Nation1099, points out that in the future, employers will need to learn how to partner with freelancers as the new labor environment unfolds.

How many engineers are career freelancers? This question is hard to answer. Most of the data that describes career freelancers fail to segment the population by industry or occupation. Data indicate that millennials are more likely to work outside traditional jobs, and the percentage thus engaged is growing, so a reasonable inference is that more millennials are opting for full-time freelancing. However, the average work experience of the freelance workforce is 10 years, and demand for senior-level freelancers is helping to drive the gig economy’s growth.

Pros and Cons

Engineers who are career freelancers find multiple reasons to craft a career, or part of a career, outside the conventional career paradigm. Freelancers in any field of endeavor appreciate the freedom to set their own schedules, pick the specific work they will do and where they want to work. The following characteristics specifically address engineers.

  • Many freelance opportunities are project-focused, like much engineering work. A lot of available freelance work is design-based.
  • Engineers have a defined and quantifiable skill set.
  • Digitization of work and the feasibility of remote work are helping to increase the supply of freelance jobs.
  • Freelancing allows an engineer to work on specific skills, develop an existing specialty or to learn more about a different facet of engineering.
  • A corollary of skills development is the opportunity to refresh skills more often than many workers in traditional jobs.

Freelancers need to consider the downside of self-directed careers.

  • The first disadvantage to freelancing is the lack of income predictability. Even when a freelancer earns a good income, some months can be leaner than others.
  • Freelancers give up employer-provided benefits, at a minimum health and life insurance and retirement fund contributions, including Social Security.
  • The potential for social alienation and the lack of networking opportunities can be significant obstacles to personal mental health and career opportunities.
  • Finding jobs takes time. Competition can make setting an hourly rate or project bid tricky.
  • Building a business also takes time and attention; freelancers cannot ignore the need for a business plan.

These lists of plusses and minutes hint at the characteristics of successful career freelancers: self-confidence, self-assuredness, self-discipline, self-motivation and tolerance for the inevitable uncertainty that freelancing brings. Employers like to see these traits as part of the package with technical skills and experience.

Online Resources for Freelance Engineers

Career freelancers can find not only jobs but also platforms designed specifically to help freelancers manage their businesses and find necessities like health insurance.

The Freelancers Union is an umbrella organization open to all who work for themselves, whether moonlighting or full-time. The organization offers several kinds of insurance, as well as information about handling taxes and advice specific to their members, like how to handle clients who do not pay their bills. Freelancers Union does not post jobs but instead provides practical services, advice and a virtual community for their members. Nation1099, mentioned earlier in this article, also provides excellent news and resources.

Freelancers can find jobs on general purpose job sites like Indeed that have sections for freelancers and for engineering jobs. Engineers pursuing a career as freelancers can take advantage of sites designed specifically for them, many of which support both employers and potential employees. General site Freelancer devotes a portion of its site to engineering jobs, as does Upwork. Sites devoted to engineers include Toptal, Cad Crowd and Comet.

What Does the Future Hold?

In the past, freelancers did not often command much respect. Working for oneself was often regarded as an excuse for the lack of a traditional job. Fortunately, this attitude is changing, and freelance no longer means that a person is between jobs. Predictions from multiple sources, including the World Employment Council and the World Economic Forum, align around the statement that the employment market will continue to experience substantial changes. For employers and potential employees to thrive in an uncertain environment, both groups will need to organize work and careers differently.

The Comet website offers visitors its “future of work manifesto," which asserts among other statements that freelancing is the new norm and is sometimes called “the freedom economy.” This statement is based on solid research. Statistics indicate that half of the workers in the U.S. will be participating in the gig economy in the next three to five years. For engineers who are considering career freelancing, the future looks promising.