New research reveals a significant trend among self-employed workers in over-servicing clients, resulting in uncharged work hours and costs.
- More than half of freelancers, contractors, and business owners perform extra work without receiving payment, according to the study.
- On average, self-employed individuals provide 22% more work than agreed in their contracts, indicating a notable pattern of over-service.
- Despite incurring costs, 34% of self-employed do not pass on expenses to clients, and those who do, transfer only 60% of the costs.
- Workwell & IPSE’s research highlights gender disparities, with female professionals more adept at billing for services than their male counterparts.
Research conducted by Workwell and IPSE has presented a compelling insight into the habits of self-employed individuals, revealing that 53% admit to over-servicing their clients. This includes performing additional work beyond what they are paid for, highlighting a prevalent trend in the freelance and contractual workforce.
On average, these professionals estimate that they complete 22% more work than stipulated in their contracts, a statistic that underscores a persistent challenge in the self-employment sector. This tendency to over-service is further accentuated by the financial decisions these workers make regarding incurred costs.
Notably, about 34% of these self-employed individuals fail to charge clients for any expenses related to their work, while those who do charge back recover only approximately 60% of the costs. Interestingly, a small faction, about 13%, opts to mark-up costs, although this is not widespread.
The gender dynamics within this professional landscape are also of significant interest. The study reveals that female contractors and freelancers are generally more proficient in billing for their services compared to their male counterparts, with 39% of women avoiding over-servicing, in contrast to just 22% of men.
Chris Mollan, Head of Accountancy Services at Workwell, commented on the findings, pointing out that the pressure to retain clients often drives this behaviour among self-employed workers. He suggested that having a clear contractual agreement before commencing work can alleviate some of these issues, alongside seeking professional advice and support to navigate these challenges.
The study underscores the need for self-employed individuals to establish clear agreements and improve billing practices to ensure fair compensation.
