Freelance workers reshape companies and jobs

By Paul Davidson, USA TODAY
Lancaster Advertising in Lewisville, Texas, used to have 15 employees, two office buildings and a loss on its balance sheet.

Today, the firm has no staff, no buildings and a healthy profit. Owner Ken Lancaster draws from more than 100 freelancers worldwide and works from his house, his boat or coffee shops.

“You don’t have to worry about someone coming late to work, and they hate you, and about all the payroll taxes and health insurance,” he says.

One of his Web designers, Bryce Davis, 36, is equally enamored of the unfettered lifestyle. Davis juggles five to 10 clients at a time from his Cincinnati apartment. “I enjoy the change of pace,” he says. “It gives you an opportunity to be creative … without stagnating.”

Across the nation, many companies are shifting to a more flexible workforce populated by temporary workers, contractors and freelancers, loosening the bond between businesses and employees. The firms, aiming to become more nimble and cut costs, want to boost or cut staffing to meet fluctuating demand or deploy workers with specialized skills for short-term projects.

The trend is subtly reshaping a workforce in which businesses traditionally employed workers through good times and bad, protecting them with benefits and job security.

“The basic bargain at the center of work used to be, employees gave loyalty and the organization gave security,” says Daniel Pink, author of Free Agent Nation. “That bargain is kaput.”

For workers, temporary jobs often mean less pay