The Psychological Relationship between Companies and Freelancers: An Empirical Study of the Commitment and the Work-related Expectations of Freelancers

Abstract

For some years now a tendency towards a more flexible shaping of employment has been observable. Little research, however, has been dedicated to the question of how relevant this is for the commitment of freelance employees. Therefore the present paper first reverts to the question as to whether - and if so, under what preconditions - freelancers are likely to feel commitment towards the company that employs them. Second, the paper identifies clusters of freelancers following their work-related expectations. On the basis of an empirical study among IT-freelancers it becomes clear that freelancers differ from permanent employees as regards their work-related expectations. Consequences for their felt commitment hence ensue. All in all it is mainly an affective commitment towards their company which they perceive. Key words: Commitment, Flexible Employment Forms, Freelanced Employees, Work-related Expectations 1. Introduction On the German labour market, clear tendencies of a transition to more flexible employment forms can be detected in recent years. This leads to far-reaching changes in the workforce structure of many companies: Tasks are no longer accomplished within companies but rather outsourced to specialists who perform at higher levels of efficiency. Within the outsourcing companies workplaces become obsolete and a segregation from permanent employees ensues (Storey/Salaman/Platman 2005). Against this background, it is not surprising that a continuous turning away from the so called regular employer-employee1 relationship may be observed in recent years. In Germany, these employments are understood as a durably conceived relationship that is based upon a perpetual contract and carried out in full time. Different atypical employments take the place of regular employer-employee relationships. Temporary work (contracts) and part-time employment can already be noticed for some time. Besides, a tendency towards self-employment may be detected in recent years. It is discussed in literature and corporate practice under different notions as new self-employed or freelance. Data gained by the German Institut fur Arbeitsmarkt- und Berufsforschung (institute for labour market and job research) (IAB) demonstrate that about 40 % of all employees are not employed in a regular employeremployee relationship (Hoffmann/Walwei 2002). The number of freelancers in Germany is estimated to be round about two million with an increasing tendency (Moldaschl 2003: 109). The notion freelancer is not clearly defined in Germany, neither from a juridical (social law) nor from an economic (business administration) perspective. It can hence not be excluded that its usage in corporate practice shows overlapping with other forms of atypical employment. In corporate practice freelancers are seen as people who perform in a personal, self-dependent and - irrespective of professions - intellectually ideal way for their employer. The employer can be a company as well as other individuals. As a rule, freelancers are specifically qualified - e.g. as an IT-freelancer and are to be flexibly employed as regards time or location (Freelancerverband 2004). In Germany, highly qualified freelancers are particularly represented in media (journalists at the press, radio or television), in consulting firms, and in the IT-industry (Statistisches Bundesamt 2003: 72-73). As a consequence of more flexible employment forms, permanent staff in companies diminishes while peripheral staff increases (Torka/Looise/Van Riemsdijk 2005). On the one hand, companies benefit through economic advantages. They particularly consist in a reduction of fixed labour costs and supplementary costs, higher flexibility and an externalisation of the risk of fluctuating utilisation. On the other hand, numerous indicators are to be found for negative changes in the social and psychological relationship between companies and freelancers. As a result of the expected flexibility and their rather lose, temporary contractual relationship to a company it is argued that freelancers may show - considerably - less identification and loyalty to a company than permanent employees (Anderson/Schalk 1998; Pfeffer 2005). …