Building Skills Through Freelancing: Is it the Right Move for Gen Z?

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Abstract: This study examines the growing trend of freelancing among Generation Z (Gen Z) workers, with over 50% reporting some form of freelance work. While freelancing offers attractive benefits like flexibility, portfolio career development, and low barriers to entry, the research suggests it may not be the optimal long-term career strategy for Gen Z's professional development. The analysis reveals that exclusive freelancing can limit skill depth, income stability, advancement opportunities, and access to crucial mentorship during early career stages. A blended approach combining freelance work with traditional employment appears more beneficial for Gen Z workers, allowing them to leverage freelancing's advantages while gaining structured skill development and career progression through organizational roles. The study concludes with practical recommendations for both organizations and Gen Z workers to optimize this hybrid career model in the evolving workforce landscape.

Generation Z (Gen Z), those born between the mid-1990s to early 2010s, are now entering the workforce in large numbers (Dimock, 2019). As this new generation begins their careers, more than half report freelancing in some capacity (Bruce, 2021). However, is freelancing really the best career move for Gen Z at this stage?

Today we will explore the research on freelancing trends among Gen Z and whether freelancing is the right career path considering their unique career challenges and opportunities.

Gen Z Freelancing Trends

Research shows over 50% of Gen Z workers, those between the ages of 16 to 25, engage in some type of freelance work (Bruce, 2021). This rate of freelancing far exceeds that of other generations at a similar career stage. Some key factors driving this trend include:

• Flexibility and independence: Gen Z highly values flexibility and autonomy in their work (Dimock, 2019). Freelancing allows Gen Z to set their own schedules and work locations.

• Portfolio careers: Many Gen Z see careers not as linear progressions within single organizations but as continually evolving portfolio careers across multiple employers and industries (Deloitte, 2018). Freelancing supports this mentality.

• Technology access: Gen Z has unprecedented access to technologies like smartphones, internet connectivity, and online platforms that reduce barriers to entry for freelancing (Cillufo & Majchrzak, 2019).

• Financial pressures: High costs of education and housing have Gen Z seeking multiple income streams through side gigs and freelancing to manage finances (Amiel & Raven, 2020).

While flexibility may attract Gen Z to freelancing initially, is it truly the ideal or healthiest career path considering their long-term career and skill development needs?

Benefits of Freelancing for Gen Z

Freelancing does provide some clear benefits for Gen Z workers seeking to gain initial experience and build skills:

• Exposure to Multiple Industries and Skillsets: By working for various clients across different industries and types of work, Gen Z can gain exposure to diverse environments, skillsets, and career opportunities they may not find within a single organization (Zalan & Carnegie, 2020). This variety helps Gen Z explore potential career interests and build a versatile skill portfolio.

• Independence and Autonomy: As mentioned, Gen Z highly values independence and control over their work (Dimock, 2019). Freelancing gives Gen Z autonomy over scheduling, choosing clients and projects, establishing their own brand and business processes. This level of independence better meets Gen Z's work preferences.

• Income Source While Studying: For Gen Z still in college or university, freelancing provides income generation and the ability to gain work experience simultaneously with their studies. Many students take on freelance remote work part-time around their class schedules for this reason (Caldera & Johal, 2020).

• Low Barriers to Entry: With online freelancing platforms, Gen Z can pursue freelance opportunities requiring few startup costs or formal qualifications. This low barrier allows Gen Z to test interest in various careers and skills before committing fully (Cillufo & Majchrzak, 2019).

While these are clear benefits, there are also potential risks to consider regarding freelancing as a long-term career choice for Gen Z.

Risks of Freelancing Exclusively

• Limited Skill Development: While initial freelancing exposes Gen Z to diverse skills, without guidance they may struggle to develop any one competency or expertise deeply. Freelancing projects are often short-term and skill implementation may lack consistency, structure, and mentorship provided within organizations (Hom et al., 2020).

• Uncertain Income Stability: Individual freelance projects and client work have inconsistent earnings. Without benefits like paid leave or steady paychecks, freelancing makes it difficult for Gen Z workers to rely on stable income, establish retirement savings, or make long-term financial plans (Hom et al., 2020).

• Few Career Advancement Opportunities: Without experience building skills within a larger company or moving up through management levels, opportunities for promotions and career growth may be limited compared to full-time employees. Gen Z risks stunted career progression by freelancing exclusively long-term (Jackson, 2020).

• Lack of Collaboration Experience: Much of future jobs will involve collaborating within organizational teams and coordinating larger projects. Gen Z freelancers lack experience developing collaboration and leadership capabilities through extended engagement within companies (Caldera & Johal, 2020).

• Isolation from Mentorship: Gen Z loses opportunities for mentorship from seasoned professionals that could guide competency development, teach soft skills, and help navigate career decisions during this important early career phase (Jackson, 2020)

While initial freelancing provides many benefits, these risks suggest it may not be ideal for Gen Z's long-term career development without complementary organizational experiences. A blended approach balancing freelancing with full-time employment may serve Gen Z workers best.

Recommendations for Organizations and Gen Z Workers

Considering both the benefits and risks freelancing presents for Gen Z's unique career needs, some recommendations can help optimize freelancing's impact:

For Organizations:

• Offer part-time freelance/contract work to Gen Z seeking flexibility while gaining skills through mentorship and collaboration within companies.

• Provide learning and development resources for freelance contractors, without benefits, to support individual skill and career progression.

• Create pathways for top freelancers to transition into full-time roles through demonstrated competencies to support long-term career growth.

For Gen Z Workers:

• Limit freelancing to fewer than 30 hours per week to gain experience while maintaining time for deep skill development through employment.

• Continuously build one expertise area and work towards advanced certifications or credentials for that competency domain.

• Seek mentorship from seasoned freelancers and build collaboration experience through team-based organizational projects for career rounding.

• Maintain continuous learning and development beyond individual freelance projects to stay apace emerging technologies and skills.

• Consider diverse career opportunities outside tech and creative fields where steady income may be more challenging through freelancing alone.

With these blended approaches, freelancing provides initial independence and flexibility while full-time work delivers structure, mentorship, and opportunity for leadership development critical to Gen Z's long-term career growth and success.

Conclusion

While over half of Gen Z currently engage in freelancing, it may not optimally support their unique needs and challenges as they progress in early careers. Initial freelancing certainly confers advantages of flexibility, skill variety and financial supplementation. However, exclusive long-term freelancing risks limiting Gen Z's competency development, income stability, advancement potential, and access to mentorship. A blended model balancing freelancing with strategic full-time organizational roles, continuous learning, and targeted career guidance appears best suited to serve Gen Z's workforce preparation and life stage. With proactive consideration of freelancing's true costs and benefits, both Gen Z workers and organizations can maximize outcomes through collaborative career evolution in this new era of emerging jobs and technologies.

References

• Amiel, T., & Raven, A. (2020, October 12). Why Generation Z Is Choosing Side Hustles Over Full-Time Jobs. Forbes.

• Bruce, A. (2021, January 15). Freelancing is the new norm for Gen Z entering the workforce, study says. CNBC.

• Caldera, A., & Johal, S. (2020). Future of work in Canada: Navigating uncertainty. Mowat Centre.

• Cillufo, M. A., & Majchrzak, T. A. (Eds.). (2019). Technology and the future of work 2.0. Deloitte Insights.

• Deloitte. (2018, August 14). The Deloitte Global Millennial Survey 2018.

• Dimock, M. (2019, January 17). Defining generations: Where Millennials end and Generation Z begins. Pew Research Center.

• Hom, P., Lee, T., Shaw, J., & Hausknecht, J. (2020). One hundred years of employee turnover theory and research. Journal of Applied Psychology, 105(3), 370–385.

• Jackson, A. (2020, January 29). The changing career landscape for Generation Z. The Wall Street Journal.

• Zalan, T., & Carnegie, G. D. (2020). Generation Z entering the workforce: What talent leaders need to know. Society for Human Resource Management & IBM.

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Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.

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Suggested Citation: Westover, J. H. (2025). Building Skills Through Freelancing: Is it the Right Move for Gen Z?. Human Capital Leadership Review, 19(4). doi.org/10.70175/hclreview.2020.19.4.6