SMEs: Use Freelancers to Fill Your Analytical Skills Gaps

Recent research from PeoplePerHour shows that 67% of small- to medium-sized enterprises (SMEs) are now using freelancers to fill skills gaps in their companies, with a 4:1 ratio of freelancers to employees in those that do – a real demonstration of the flexibility in our SME market; and great for Challenger MI, specialising in market and competitive intelligence for industry Challengers and SMEs, given that they comprise 99% of our economy: around 3.5m potential customers!

The main reason for using freelance talent, cited by 55% of respondents, is to fill roles that companies currently lack the skills for; followed by gaining increased capacity and flexibility, cited by 37% of respondents.

These are strong arguments in favour of acquiring freelance talent, and they are as applicable to my profession – the market and competitive intelligence discipline – as to any other niche or specialist discipline, for a number of reasons. This is particularly so as most SMEs, unlike their larger competitors, do not have the capacity to employ analysts full-time.

Firstly, market analysis is a specialist skill-set, and especially so when it comes to analysing large datasets – both quantitative and qualitative – particularly in the form of survey responses or large amounts of sales data, for example. Not only is the analysis itself technical, but there is also a skill to initially asking the right questions, and then disseminating the findings in such a way as to ensure that action is taken upon them.

Research from LinkedIn, reported by the World Economic Forum, showed that, for 2017, the second most in-demand skill of all is statistical analysis and data mining; and the eighth most in-demand skill is data presentation and visualisation. Challenger MI does both on a freelance basis with, for example, the image below showing the visualisation of tens of thousands of data points relating to export markets for a micro-business that we looked at recently.

Secondly, freelancers add greater capacity and flexibility to an SMEs workforce; and, once more, analytical work is a prime example of where this is needed, as I all-too-often see it tacked on to another person’s job. For example, I recently looked at a job description for a ‘Marketing Manager’ at a local medium-sized company. In the job description, the employer outlined 28 responsibilities, and 11 desired skills; and, in total, six of these related to market intelligence. Five of the 28 responsibilities (18%) did so, suggesting that the Marketing Manager should spend roughly one day a week on them.

Given that this person’s role also includes the full spectrum of marketing – from web design and management, to branding, e-commerce, advertising, social media, packaging, PR – it is simply not possible for them to cover all of that and have the requisite expertise for market analysis, nor the time to do the work justice. It is an excellent opportunity to bring in a freelance analyst, for that one day a week, to get that work done to the utmost standard, while also freeing up the Marketing Manager’s time for the other 23 responsibilities on that list.

Furthermore, I make the point above that it is a specialist skillset; but, further, it is more than that: a specialist mind-set, too. Nowhere is this more perilous, in my opinion, than in the marketing field, given that analytical work requires left brain dominance, while marketing work – the advertising, the PR, outlined above – requires right brain dominance. There are often fundamental differences in personality and mind-set between these two types of people.

From another blog, here.

Thirdly, the use of freelancers brings in a fresh pair of, objective, eyes. This is particularly important in market and competitive intelligence, given the absolute necessity for objectivity, impartiality and the requirement to overcome bias – perhaps particularly where competitors are concerned – in your analysis.

Think about a customer survey, or a win/loss analysis programme: your customers are far more likely to give honest responses, from which a company can learn the most, if they know that they are talking to someone independent of the company – perhaps Market Research Society qualified, as in my case (!) – and who guarantees their anonymity.

Where competitor products are concerned, a company will, inherently, think that its products are superior – but are you seeing this from the same perspective as your customers? Bringing in an outside analyst helps to overcomes these biases; and others, too, such as confirmation bias, which is a particular pitfall for those inexperienced in analytical techniques.

Conclusion

Two-thirds of SMEs enlist the help of freelancers, but what I would really like to see, perhaps next from PeoplePerHour’s research, is the subsequent differences in performance between those companies that do and those that don’t – there are huge benefits to be gained from the flexibility and access to skills, and I would hypothesise that it is reflected in company performance.

Freelance analysts – the second most in-demand skill – should be at the forefront of this. SMEs’ larger competitors are recruiting stattos, and can accommodate employing full-time analysts. SMEs risk falling behind if they don't keep up with the big data evolution.

But more so than anything, I wholeheartedly believe that SMEs stand to gain greater competitive advantage from market intelligence due, among other things, to the reduced lead time between the production of intelligence and the action that can be taken upon it.

Hiring a freelance market analyst enables SMEs to exploit this competitive advantage and – as with all of the freelancing above – access these skills on the basis, and cost, upon which they need them. I work with SME clients highly flexibly on an ongoing, temporary, or project basis.

Indeed, I believe so passionately in these principles that I offer one day of work a week at minimum wage to local micro-businesses and start-ups, so that they can access a skill-set and mind-set that they otherwise wouldn’t be able to.

MBA-level analysis for minimum wage – I call it putting my money where my mouth is.

If your company is interested in adding market analysis expertise and capacity on a freelance basis, then contact me here.

Statistical analysis is no.2 and data presentation is no.8 - talk to me if your company needs either of these skills #freelance #consultancy https://t.co/FAoYGFxZU6

— Challenger MI (@Challenger_MI) January 14, 2017