Fresh grad? Check out freelancing first

MANILA, Philippines—Filipinos are a force to reckon with in the online labor market.

The growing marketplace shaped by freelance platform Elance shows that over 95,000 Filipinos are registered as online freelancers.

This makes the Philippines one of the biggest markets for freelancers, ranking fourth in terms of registered users.

In the first quarter of 2013, an 89-percent surge in registered freelancers was observed.

Elance generated 4,642 jobs for Filipino freelancers during the same quarter.

Most jobs specialized in administrative support, information technology (IT), programming, writing and translation.

The Norway-based group attributes the rise in online employment to a shift in the scales as more Filipinos explore the benefits of working from home and allow them to pursue their own passions.

According to a report issued by Elance—“The State of Filipino Freelance Market”—the biggest revolution in the labor market is the “human cloud.”

On that platform, Filipinos stand out because of their talents, tech-savvy skills and ease of access to the web through smartphones.

The report also indicates that the Philippines is a prime destination for freelance work hirers because of the Filipinos’ reputation—they are acknowledged to be hard workers with a good command of the English language.

Elance’s vice president for Europe Kjetil J. Olsen says the progress the Philippines has made in online freelancing goes beyond the company’s expectations.

“With the potential for even greater growth as companies continue to embrace online freelance work, the future is indeed bright for Filipino talents and the local economy alike,” he says.

Filipino freelancers are also among the highest-paid in the online market. They earn an average hourly rate of $8.30 (P342 at the current exchange).

Information technology and programming professionals enjoy premium hourly rates of $14.40, or around P604.

The Filipino freelancers ranked ninth in terms of earnings, raking in $7.7 million (P313 million) in 2012.

According to the report, 40.8 percent of freelancers used to have full-time jobs while they moonlight on the side.

Also, 20.8 percent turned to full-time freelancing after being laid off.

Data further shows that freelancing is a viable alternative or addition to an office job.

The report states that 56 percent are full-time freelancers while almost a quarter spend between 11 and 20 hours a week working on freelance jobs.

About 20 percent indicated that they spent 40 hours a week doing freelance work.

Popular Filipino skill sets, as determined by Elance, include research (50.4 percent), writing and content (43.4), and online marketing (31.8).

Also, 76.9 percent of Filipino freelancers are keen on having control of their own time, while 74.8 percent like the idea of working wherever they please.

Around 71.2 percent of respondents think that freelancing allows them to pursue their own passions and explore a myriad of opportunities.

As a result, Filipino users are happier as freelancers (67.7 percent) and are more productive with their time (88.5 percent).

Most of them also prefer working on an hourly basis (46.9 percent) compared with those who like to work on a project basis (37.7 percent). However, most freelancers surveyed agreed that the biggest challenge they face is competition among themselves.

With these numbers, Olsen believes that the Philippine business environment is moving toward online work.

He says Filipino workers are truly committed to what they do. Once they set their minds on one thing, they will stop at nothing to achieve the goals set.

Olsen considers the number of freelancers hired for the first quarter as an important metric in the online labor market transformation.

In 2012, a total of 2,182 freelancers were hired in the Philippines for the first time, a 175-percent increase from that of 2011.

“No longer are talents bound by the constraints of the local labor market; if you possess a skill in demand on the global labor market, there are thousands of opportunities available online. Online freelancing has truly redefined how we view, perform and value work,” he says.

In addition to talents and skills, the Filipino’s inherent community entrepreneurial skills also tend to accelerate the growth of online labor market.

Online freelance nurtures entrepreneurship. With the rising popularity of freelancing, Filipinos tend to set up a team. So they start up their own one-man business with a team to support their everyday task, Olsen explains.

To further harness Filipino talents and online freelancing, Ronald M. Cirujano, Elance country manager in the Philippines, has set up teams of freelancers, called mobilizers, in Cagayan de Oro and Cebu.

The mobilizers will conduct workshops and learning sessions for those who are interested.

“We believe in the Filipinos. Hopefully, through the mobilizers, we will be able to teach them to sell themselves in the online market. We also aim to build a community where everyone knows everyone,” Cirujano explains.

Joining Elance as a freelancer is simple. First, freelancers and businesses post their profiles, with freelancers highlighting their skills and qualifications, while businesses detail the kind of work to be done.

Then, freelancers submit their proposals, along with preferred rates, work samples, and verified credentials. The most qualified candidate is selected.

Both freelancer and business collaborate online in a special private messaging board.

Upon completion, freelancers who work on a project receive their salary via escrow payment, a prefunded setup managed by the business.

But if work is done on an hourly basis, a worker gets paid after a review of progress using the optional Work View, which takes screen shots of the computer while a freelancer is working.

Elance earns a commission of 8.75 percent for every transaction completed.

For more information, visit www.elance.com