In December 2018, Microsoft announced it was introducing a 365 Freelance Toolkit for companies to “launch and scale” their freelance workforces. Their rationale was that the gig economy was driving customers toward including freelance talent in their projects. According to the global online marketplace Upwork’s "Future Workforce Report," almost 50% of recruiting managers had hired freelancers and 90% of them would consider doing so. Moreover, the great majority of freelancers weren’t open to regular employment – they liked working the way they did.
The announcement went on to appreciate companies’ needs “to adapt to new business models to get work done with external talent,” while adding that “the path to transforming existing policies and processes,” aimed at regular employees, is largely undefined. Microsoft and its customers had both been relying on collaboration software designed for their own people with internal clearance to join the conversation. It was time for both parties to catch up with the marketplace. The 365 Freelance Toolkit would provide the way.
The Toolkit is described to build on customers’ existing use of Microsoft 365 software by adapting that software for freelancer participation. Specifically, this involves employing current software and providing tools and best practices to help customers scale up their use of freelance programs. The Toolkit also draws on Microsoft’s internal experience in the use of freelancers in four key areas: internal communication, team-wide collaboration, data analytics and workflow automation.
First, customers need a space for full-time employees to learn about engaging with freelancers and to share information and best practices with one another. Microsoft provides this through a customized version of their existing SharePoint software.
This will allow freelancers full access to and participation in relevant team member communications “while ensuring freelancers will not have wholesale access to the enterprise environment.” This will be provided through the Microsoft Teams software system.
These will allow administrators to establish, track and respond to key performance indicators, and to integrate employees and freelancers in the analytics provided. This business intelligence would be provided by the Power BI monitoring system.
This covers provision, compliance, and monitoring of software, largely automating and thereby enabling a “frictionless process” for employees to work with freelancers. This will use Microsoft Flow to streamline program activities.
Other notable features of the information available so far are guidelines on best practices based on Microsoft’s own experience, and the announcement that their launch partner for the Toolkit is the global freelance marketplace Upwork. Microsoft’s internal team spoke enthusiastically about the changes the Toolkit can bring.
Liane Scult, Microsoft’s first-ever senior freelance program manager, who created the solution that drove Microsoft’s internal freelance program from zero to more than 2,000 assignments, comments: “At first, the freelance program was just a blank sheet of paper. That became a big bet with a clear call to action: build a freelance technology solution to empower enterprises across the planet to realize the benefits of the gig economy. I had been a freelancer, a vendor/supplier, and a full-time employee. I could see across the entire landscape because I had traversed it. I also had a background in Microsoft’s hacking and innovation culture. So, I focused on building for both our talent and our customers—examining what everyone on all sides of the gig economy would need. Today, we continue to refine our Toolkit with this 360-degree mindset to improve the experience for all.”
Matthew Mottola, project manager for the Toolkit project offers: “When I talked with our customers it became clear that there was no one process. Every enterprise was creating new processes, instead of leveraging the tools they were already using. Thus the toolkit was born—a curation of Microsoft 365 tools, with freelance program specific templates—that answered our customers' question: “How can we launch and scale a freelance program with the Microsoft tools we already have?” The toolkit tells our customers: “Here’s what we’re doing and you can do it, too.” This is a critical point. You don’t have to retool, you can use what you already have by accessing our toolkit platform. That’s the beauty of it: it’s organic, it can be customized, and it’s efficient. We built the Microsoft 365 Toolkit to meet you where you are, and to evolve with you as larger digital trends unfold.”
What about Upwork’s investment? Microsoft’s announcement refers to Upwork’s “end-to-end compliance and freelance talent sourcing solution.” Moreover, an underlying disclaimer states:
“Important: Each enterprise will need to evaluate and determine its own requirements, including such things as data handling and compliance needs. Enterprises should use their existing Microsoft 365 investments as they determine appropriate, based on their requirements and needs.”
The above statement points to Upwork’s substantial contribution to the project. It is, first, to respond to the patchwork of compliance rules spawned by the European Community’s 2016 General Data Protection Regulation (GDPR) initiative, and the resultant growth of national privacy directives around the globe. Upwork has had to respond to each of these to legitimize the employment of its global talent pool. Second, there are regulations about the use of freelancers, their hours of work, worker classifications and payment obligations that can vary by nation, state or even city with which Upwork has to comply. Microsoft reports that Upwork has been a very effective partner in taking charge of the compliance process and the vital connection of its freelancers to their Toolkit.
At present, the opportunity to use the Toolkit is restricted to Microsoft 365 user companies and Upwork-registered freelancers. However, you can expect both partners to look to extend their market leadership. For Microsoft, that can come through consolidating and further expanding its customer base of Office 365 business services. Furthermore, the Toolkit appears to have the potential to be adapted for use by other freelancers and/or their agencies in the future. For Upwork, market leadership can come from extending its global advantage in compliance, building on the learning it has gained from the partnership with Microsoft, and growing its already formidable list of available freelancers.
There are other, tantalizing possibilities. Microsoft’s suite of programs offers a hook to the re-employment of both its own people and freelancers. In each case, the Toolkit could identify when current projects were approaching completion, and invite consideration of future projects. This would lead the Toolkit closer to promoting the kind of balanced employer-employee career conversations recommended in previous articles, in turn challenging the employer-centric assumptions of established talent management programs. Upwork’s entry into compliance suggests it could reach into a growing marketplace for compliance services that was not previously envisaged, again serving both parties to the employment contract.
A word of caution for freelancers. In the short term, you may be asked to list yourself on Upwork to become eligible to work for a company that uses the Toolkit. However, you can anticipate other options to come along later.
A word of caution for freelancer agencies other than Upwork: Microsoft appears open to working with you. However, you may need to develop compliance programs for the geographic regions in which you and your freelancers operate, so that your customers can use the Toolkit. Both freelancers and their agencies need to be alert to a changing market for their services.
