How Is The Freelance Revolution Shaping Up In Germany? CEOs Share Their Views

Most German pundits agree that 2023 is challenging on the talent front. While many people have experienced the financial and emotional difficulty of losing their job, the job market remains extremely tight overall in Germany and across the EU. According to one recent report, Germany has one of the lowest unemployment rates in the EU.

So what does that mean for freelancing in Germany? To provide the best possible answer, a dozen CEOs or managing directors of German freelance platforms exclusively gave Forbes and Freelance-Focus their forecast for the freelance economy in Germany over the next two years. The CEOs run a range of organizations, from very large to smaller in size, some working closely with Germany’s largest corporates and others primarily serving startups and small businesses. Here's the question that was put to them.

How is the freelance revolution shaping up in Germany: what's your forecast for the freelance economy in Germany in 2023 - 2024? Are you optimistic or pessimistic and, if so, why?

Here’s how they responded:

Kelvin Wetherill, CEO NerdApp. "We're optimistic about the future of freelancers in Germany. From a supply side, we have been incredibly impressed by the quality of IT professionals we have been onboarding in the country, the tech talent shortage has left many without jobs, so platforms like ours enable people to make money as a stop gap or give them the confidence to move into freelancing full time. We have a similar take on the demand for IT services in the region, companies are adopting open talent strategies to stay agile and there are many benefits to this model. Germany has massive potential and we can't ignore it any longer, it now comes down to educating businesses and working with policy makers."

Thomas Maas, CEO Freelancermap. “Many permanent positions can no longer be filled. This is partially due to a shortage of skilled workers and demographic changes in Germany, but also a fundamental attitude shift in how people want to shape their professional future. They want flexible but also secure. It is precisely this area of tension that is the challenge of the next few years. Businesses and policymakers in Germany have to create an environment where freelancers are given better legal rights and bureaucratic tasks are made easier for them.”

Deya Aliaga Kuhnle, CEO DBM Bootcamp. “Compared to the US, larger German companies are still quite traditional and less open to freelancing. There is also less familiarity with remote work software, tools, and best practices to facilitate work with freelancers. I am optimistic because there is growing interest on the talent-side. While Germany is definitely behind in the freelance revolution overall, COVID-19 forced German businesses to be more open-minded about flexible working, remote setups and digital transformation, but still has a long way to go. My big concerns: 1) digital literacy, 2) health insurance for freelancers and 3) complex bureaucracy; plus, resources for German freelancers are still scarce and unclear.”

Dirk Henke, General Manager DACH Malt. "We remain optimistic. More than a third of the German population can imagine a life as a freelancer, especially people aged 18 to 29 (44%) and people with degrees (42%). On Malt, we also see a 63% increase in registrations in traditional professions like HR or finance. Now is the time for companies to build their strategic advantage by developing a holistic talent management approach that includes freelancers. Moreover, policymakers need to distinguish between the gig and talent economies and tackle bogus self-employment; 87% of freelance consultants in Germany are happy with their career choice and have no plans to become employees again."

Manuel Meurer, CEO Uplink.“Freelancing in Germany has been rising for years, but the pandemic gave it a huge boost, with professionals switching to freelancing in the IT and startup sector, and companies considering freelancers as a viable alternative to full-time employees. Now, in 2023, we see many employees of startups and larger tech companies being laid off, which I’m sure will be the trigger for many to switch to freelancing. That said, legal conditions in Germany favor employees over freelancers, e.g. pension, maternity/paternity leave, and unclear rules around ‘false self-employment’ still cause many larger companies to avoid freelancers altogether.”

Ömer Güven, CEO Fintalent. “We’ve noticed that in Germany the pull of conservatism remains strong. In our space, more freelancers than last year seem to be moving back to fulltime jobs. Others previously interested in going freelance have switched jobs and are waiting it out another year or two. We also notice that German corporates are becoming more open to working with freelancers, even in M&A. So it’s an interesting time: on the one hand, professionals perceiving freelancing to be risky and corporates opening themselves up because they need the talent or have to deal with hiring freezes.”

Marc Clemens, CEO CodeControl ."Fueled by the talent shortage and post-pandemic work environment, freelancing in Germany has massively grown over the last few years. The growth has been strongest in fields that are fully digital and in demand: e.g. tech/IT, Marketing, Recruiting, etc. We also see new freelance startups offering new services to freelancers and companies. While the number of curated freelancer marketplaces is exploding, innovative new business models are also showing up. The #1 risk in Germany is still the lack of a clear and forward thinking regulatory framework.”

Hans-Ulrich von Freyberg, CEO Vicoland. “Freelance growth in Germany is not a fad, it is a megatrend: Over the last 30 years in professional services the number of freelancers has tripled from .5 to 1.5 million. This growth has been continuous through 2022 and is unlikely to stop there. Further growth will be fueled by innovative ways to make freelance work more attractive to enterprise clients. Such innovations include freelance teams solidly organized in constructs like virtual companies which can compete with traditional professional services firms.”

Pawel Netreba, CEO Getyourtechtalent.“Several factors contribute towards a booming freelance economy. 1) The tough economic environment, 2) layoffs, 3) More employees working remotely or from home, and 4) Hiring freezes and layoffs constrain businesses as less employees are available to manage day-to-day operations plus restructuring, and creating lots of space for freelancers to fill gaps. As a result, we see a big increase in applications and requests. Companies are laying off and few are hiring full-time. We see an increase in freelance and short-term projects postings and requests. Thus, more talents are looking for side gigs or short-term projects. So, we’re quite optimistic about what’s coming.”

Paul Weinreich, MD Junico.“As a result of the pandemic, reservations about freelancers are reduced in many companies, as they can be integrated more easily thanks to the hybrid work culture that now exists. This is accompanied by a trend toward integrating freelancers into the corporate culture like full-time employees. This is precisely where labor law problems could arise in Germany, as current laws generally prohibit treating freelancers like employees. In the past, for example, it was already a risk for companies to invite freelancers to their Christmas party.”

David Küpper, Co-CEO Expert Powerhouse.“We expect the freelance economy in Germany to grow strongly over the next two years. More and more people seek interesting project opportunities for flexible and, often, remote work. Clients realize the potential of flexibly adding specific talent to their teams, giving them a great competitive advantage. Aging demographics will further fuel the freelance economy in Germany. The German Bureau of Statistics points out that our younger population is decreasing and that there will be a much smaller labor force in these age groups.”

And, thank you Expert Powerhouse Co-CEO Christian Moldenhauer for querying Chat GPT on its response to the question:

“Germany is witnessing a growing trend of freelancers, with a significant increase in the number of self-employed individuals in recent years. According to the Federal Statistical Office, freelancers in Germany increased by almost 30% over the last ten years. The freelance revolution in Germany is being driven by a combination of factors, including changes in the labor market, advancements in technology, and a growing desire for greater flexibility and autonomy in work. One of the main advantages of freelancing is the flexibility it offers. This flexibility has been particularly attractive to younger workers who are looking for a better work-life balance. The German government has recognized the growing trend of freelancers and has implemented policies to support them. The government has introduced a number of tax breaks and other incentives to encourage people to become self-employed. This has helped to create a more favorable environment for freelancers in Germany. Overall, the freelance revolution in Germany is shaping up well, with more and more people opting for self-employment. While there are still some challenges that need to be addressed, the trend towards freelancing is expected to continue in the coming years.”

Viva la Revolution!