The State Of Tech Freelancing in The Netherlands: Gravitational pull
By Wietse Boersma, Recruiter.
This post first appeared on LinkedIn on the 5th of March 2020.
With the influx of tech freelancers, one would be inclined to think that freelancing is more advantageous than ever. And I would pose that it is -- particularly for software engineers. After all: the influx still doesn’t match the demand by a long shot. Having worked in the industry for years, mediating between dozens of freelance software engineers and organisations, I know first-hand what the actual, practical considerations are for software engineers to get into freelancing. It boils down to three main incentives.
With the influx of tech freelancers, one would be inclined to think that freelancing is more advantageous than ever. And I would pose that it is -- particularly for software engineers. After all: the influx still doesn’t match the demand by a long shot. Having worked in the industry for years, mediating between dozens of freelance software engineers and organisations, I know first-hand what the actual, practical considerations are for software engineers to get into freelancing. It boils down to three main incentives.
A prominent reason for engineers to start freelancing is the freedom that comes with the status. I fully understand the gravitational pull of managing your work-private life at your own discretion, e.g. planning vacations whenever you like (although many progressive companies are starting to see that unlimited paid vacation days are the way to go). If, hypothetically, a freelancer feels like doing the next project closer to home or remotely, nothing will keep him or her from being critical towards job offers until the gold standard is met. You get to pick your battles. The more critical you are, however, the bigger (financial) buffer you better have. A freelancer is mostly dependent on the availability of project positions. An important footnote here is that said freedom is mostly theoretical. For example: a freelance engineer can insist on working from home ‘til kingdom come. However, if the rest of the team performs better when working together on-site, the freelancer’s rigidness will ultimately compromise the contract -- no matter the technical merit.
Secondly, people are drawn to freelancing because of the variety in projects; freelancing apparently awakens the adventurer in us. One could say that tech freelancing comes with a bit of a chicken-and-egg causality dilemma. After all: does it make sense to start freelancing because of a broad and deep level of experience, or does this experience follow the actual freelancing? Many think of a freelancer as inherently masterful: specialists in their field who can be up and running fast in any technical environment. What’s more, they are often expected to be didactic contributors who lift up the software teams that they join. In that sense, it feels counterintuitive to learn that software engineers nowadays start freelancing from younger ages than before. People pursue different contexts and technology instead of coming from such situations, or so it seems.
Lastly, of course, there’s the financial aspect. Plain and simple: freelancers make more dough. Conversely, they do carry many risks and burdens. Additionally: freelancing requires an entrepreneurial attitude that not everyone has. Check those boxes, however, and you’re golden. Furthermore: The Netherlands’ (political-economic) climate looks favourably upon those who have taken the leap thru, for example, a general tax credit. Paradoxically, the Dutch government is still struggling with the infamous ‘DBA’ legislation and is reducing the ‘zelfstandigenaftrek’ (an annual financial deduction for freelancers) in phases. Freelancers in tech, however, have little to complain about with regard to hourly rates, it seems. Of all freelancers in the Netherlands, those in tech (specifically software engineers) are paid the highest hourly rates.
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