Report: Layoffs in Finance Bring Spike in Freelance Hiring

Freelance platform Fiverr has partnered with market research group Censuswide to report on finance business leaders’ attitudes toward AI, freelancers, and more.

The study, Strategic Insights: Leveraging Freelance Talent in Finance, consisted of a sample of 501 leaders from medium and large US finance firms relying on freelancers.

The survey indicates the biggest challenge for companies in finance is adapting to changing customer expectations (according to 27% of managers). Finance leaders also struggle with incorporating sustainability and social responsibility (26%) and cybersecurity threats and technology outages (26%). Regulatory compliance and economic volatility were the other biggest hurdles, each being named by about a quarter of respondents.

The report also finds executives have mixed opinions on AI and DeFi (decentralized finance). The majority (64%) were positive about AI, with a quarter reporting increased efficiency due to it. A slight majority, 55%, reported AI integration had exceeded their expectations, while 16% reported more mixed results.

Regarding DeFi (an umbrella term for peer-to-peer financial services on public blockchains, primarily Ethereum), 26% of leaders reported being heavily invested and seeing it as a transformative force. However, 43% expressed concerns over regulatory challenges and security issues. Just a little less (42%) see it as both a challenge and an opportunity.

The evolving technological landscape has prompted executives to look for skills like “Fintech Innovation” (sought by 24% of the surveyed leaders) and “AI Expertise” (18%). Finance leaders often turn to freelancers to fill these and other skill gaps in their teams.

As half of respondents reported difficulty in sourcing skilled employees, 62% said they increased their hiring of freelancers, and more than a quarter have had freelancers as project leaders.

The increase in freelancing comes amid layoffs in tech and finance: half of the executives reported job cuts in their companies. Turnover is an even more prominent problem, with 68% of those polled saying it has increased at their company.

Executives have increasingly adopted hybrid models and employee benefits to attract quality talent and increase employee satisfaction. As a result, as much as 78% of the respondents have noted a boost in productivity.