Navigating the Evolving Contract Recruitment and Freelancer Talent Landscape: Insights from the 2023 Salary Survey

5 Minutes

The digital sector has seen a significant increase in the role of contract and freelance pro...

By Hannah Brown


The digital sector has seen a significant increase in the role of contract and freelance professionals over the years, and it continues to be a popular choice for many who prefer the flexibility and diversity of projects this type of work offers. However, navigating the contract recruitment and freelancer talent market is not without its challenges. In this blog post, we delve into some key insights from the 2023 Salary Survey to better understand the state of the market and the opportunities and challenges faced by freelancers in the digital sector.

Challenges Faced by Freelancers

As per the survey, 15% of freelancers see changes to regulations, such as IR35, as the biggest threat to their careers. IR35 is a set of tax legislation that aims to tackle the issue of 'disguised employment,' where contractors work in a similar capacity to full-time employees but are paid through an intermediary, like a limited company, to minimize their tax liability. The ever-evolving regulatory landscape has a significant impact on the ways freelancers manage their businesses and can lead to uncertainty and confusion.

Another major concern for freelancers is the potential for periods of non-work. According to the survey, 17% of respondents cited this as a worry. Despite this concern, the market remains fruitful, with a quarter of respondents stating that it takes less than a week to secure a new contract after the previous one has ended.

Contract Lengths and Arrangements

The data from the 2023 Salary Survey shows that 44% of contracts were over six months, with 31% lasting between three to six months, and 17% lasting between one to three months. This indicates that while many freelancers are able to secure long-term contracts, there is still a significant number who are only able to secure shorter-term arrangements.

In terms of contract arrangements, freelancers have various preferences. The survey shows that 33% choose to work as a limited company, 23% opt for an umbrella arrangement, 19% choose PAYE (Pay As You Earn), and 16% work as a sole trader. These choices may be influenced by factors such as the specific project, industry, or personal preferences, but they demonstrate the diverse range of options available to freelancers in the market.

The Impact of Client Budgets

Another important aspect to consider is the impact of client budgets on the freelancer market. The 2023 Salary Survey data reveals that clients are reducing their budgets for engaging product/platform specialists or putting entire projects on hold due to the rising running costs of their businesses. This creates a challenging yet rewarding market for freelancers who are able to adapt to these changes and find innovative ways to deliver their services.

Here are some strategies for navigating freelancer jobs in 2023:

  1. Offer flexible pricing options: Freelancers can provide different pricing options to cater to clients with varying budgets. This may include offering discounted rates for long-term contracts or bundling services together to create cost-effective packages.

  2. Focus on value-added services: By emphasizing the value they bring to a project, freelancers can justify their rates and demonstrate the return on investment for clients. This may involve showcasing previous successful projects or highlighting unique skills and expertise that can help clients achieve their goals.

  3. Embrace technology and innovation: Keeping up with the latest technological advancements and integrating them into service offerings can help freelancers stand out from the competition and offer solutions that are both cost-effective and high-quality.

  4. Diversify clientele: Working with a diverse range of clients can help freelancers mitigate the impact of budget constraints on their income. This may involve targeting clients in different industries or sectors, or even exploring international opportunities.

  5. Develop strong client relationships: Building strong relationships with clients can lead to repeat business and referrals, which can help freelancers maintain a steady flow of work even when budgets are tight. This can be achieved through regular communication, delivering exceptional results, and providing excellent customer service.

Staying Competitive in the Freelancer Market

Despite the challenges faced by freelancers, the market remains buoyant, with many professionals taking advantage of the opportunities for innovation and advancements in technology. To stay competitive in the market, freelancers can focus on the following:

  1. Building a diverse skill set: Freelancers who are able to offer a range of skills and expertise can remain in demand despite fluctuations in the market. Continuous learning and professional development are key to staying ahead.

  2. Networking and marketing: Establishing a strong professional network can open doors to new opportunities and help freelancers secure contracts more easily. A well-developed personal brand and marketing strategy can also help in attracting clients and standing out in the crowded marketplace.

  3. Adapting to regulatory changes: Staying informed about changes to tax legislation and other regulations that affect freelancers is crucial. By understanding and adapting to these changes, freelancers can minimize the impact on their businesses and ensure compliance.

The contract recruitment and freelancer talent market in the digital sector offers a range of opportunities and challenges for professionals seeking flexibility and project diversity. The 2023 Salary Survey highlights the various contract lengths and arrangements preferred by freelancers, as well as the concerns they face, such as changes to regulations and periods of non-work. The market is also impacted by clients' budget constraints, which can create additional challenges for freelancers.

To thrive in this landscape, freelancers must remain adaptable and resilient. Building a diverse skill set, investing in networking and marketing, and staying informed about regulatory changes can help freelancers navigate the market effectively and maintain a successful career in the digital sector.

As the demand for skilled professionals in the digital sector continues to grow, the contract recruitment and freelancer talent market will continue to evolve. By understanding the current state of the market and anticipating future trends, freelancers can position themselves for success and seize the opportunities presented by the rapidly changing digital landscape.

Remember, our specialist contract team are here to support you! Whether you're hiring or searching for your next contract gig, then reach out to our team today -

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