Expert Insights, Leader

Glen Hodgson, Founder and CEO of Free Trade Europa

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Leaders,

How are you navigating legislation? Are you turning a blind eye, hoping the tax collector will skip over you? Or are you burying your head in sand until the day you’ve hired enough freelancers to be noticed? Well bad news, the freelance economy is in the midst of a legislative reckoning, and if you’re on the wrong side of it, your business or platform could be in serious trouble.

According to Human Cloud data, less than 10% of leaders think their government is supportive. Legislation isn’t a simple issue. On the surface, freelance seems only beneficial. It creates more jobs. Individuals have more flexibility, more choice, and according to all relevant data, individuals overwhelmingly choose to freelance and are more confident and secure than their full-time peers.

Yet, for some reason, it’s not that simple — governments are still not supportive. Why not? The short answer: taxes. The long answer: freelancing disrupts the employment framework that has been in place for the past 75 years. Seemingly overnight, tax collection becomes exponentially more difficult, since rather than a handful of companies paying unemployment, healthcare, and the related taxes, instead it’s the individuals who are responsible for paying these taxes. And let’s face it…some don’t, and it’s much harder to chase thousands of individuals rather than a couple large companies. Freelance also undermines the traditional notion of a “good job.” No healthcare? No benefits? No paid time off? In the seat of government we look like an exploitative model for companies to avoid taxes and benefits.

While this doesn’t capture the full picture, it underscores the uncertainty and hesitation governments continue to have towards freelancing and self-employment in the foreseeable future.

Which is why today’s guest is Glen Hodgson, European policy expert and Founder and CEO of Free Trade Europa. Glen will dive into the mindset of governments and legislators, examine current and proposed legislation, and explore regional differences across Europe. He’ll also offer valuable insights into the state of the freelance economy in Europe.

Key takeaways:

Government legislation and policy in Europe often lags behind the changing nature of work and the demands of freelancers.
Freelancers around the world want similar things, flexibility, choice, and recognition for their work, and are pushing back against traditional employment models.
Europe isn’t one monolithic region with the same laws and customers. There are significant differences in freelance adoption and legislation across European countries, with some countries being more supportive of freelancers than others.
The current and proposed legislation in Europe can have significant implications for freelancers, platforms, and enterprise leaders, and may require workarounds and adaptations.
Leaders in the freelance economy should actively participate in shaping legislation, advocating for the needs and interests of freelancers, and promoting the benefits of freelancing.
Effective leadership in the freelance economy requires new skills and approaches, including a matrix-style organization and a focus on relationships and collaboration.

Chapters

00:00 – Introduction and Background

03:24 – Government Mindset and Freelancer Demands

10:14 – Legislation and Policy Challenges

18:05 – Differences in Freelance Adoption Across Europe

21:10 – Differences in Legislation Across European Countries

27:31 – Implications of Current and Proposed Legislation

32:14 – How Leaders Should Participate

36:55 – Addressing Burnout and Leadership in the Freelance Economy

39:17 – Where to Find Glen Hodgson

Follow Up Material & Links

Digitalisation and AI have changed the world of work and also the demands on companies, teams and how to lead. Workforces are becoming more flexible, and the command-and-control model has been replaced by that of a coach who needs to manage a matrix organisation in terms of locations and functions as well as full time staff, consultants and freelancers. The days of a one-size-fits all leadership style is over and new hard and soft skills are needed.

This study therefore analyses the new world of work; the changing shape of the organization; digital transformation: the use of AI and flexible workforces; and the regulatory framework before looking at the impact on leadership.

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Glen Hodgson, Founder and CEO of Free Trade Europa