Rethinking freelancing: The potential of alliance organizations
Christer André Flatøy has spent years studying freelancers and their experiences. His latest project, focusing on the alliance model, explores a unique organizational structure designed to address some of the uncertain conditions freelancers face.
“The alliance model is also about freelancers, but from a more organizational perspective,” Flatøy explains.
Together with Professor Juani Swart from the University of Bath, he has started to gather data on the little-known alliance model. It all started with Kontekst, a digital journal from the association for art and culture (Creo), contacting him about a year ago. They wondered what we know about alliances from the research side.
However, Flatøy had never heard about alliances. When he started looking more into it, he found out that there was not really any research on the alliance model either. Realizing this gap, he saw an opportunity for exploration and further study in a largely uncharted research field.
What is the alliance model?
Alliance organizations organize work in a unique way. Freelancers and self-employed individuals are hired but operate as if they are still freelancers or self-employed. They do not pay any fees or similar costs to be employed, and the employer does not exercise any supervisory authority over the employees, unlike traditional organizations.
Furthermore, the employees have the opportunity to engage in skill development and networking, both with others in their alliance and with freelancers and individuals outside of the alliance, all organized by the alliance. In other words, alliance organizations offer the best of both worlds, according to Flatøy: they provide freelancers with financial security while allowing them to be part of a community, all while still operating as freelancers.
There are five such organizations in the world: two in Norway and three in Sweden. All of them operate within the cultural sector, which, according to Flatøy, can be attributed to the prevalence of freelancing in this field, as well as the challenging working conditions that characterize the sector.
“Being a freelancer in the cultural sector is very unpredictable, with possibly weak or highly variable income,” he adds.
Societal benefits
A defining feature of alliances, in contrast to traditional private companies or "umbrella companies" that use a similar model, is that they operate on a not-for-profit basis. As a result, these organizations rely heavily on state funding, typically through cultural budgets, to sustain their operations. This raises the question: "What does society gain from supporting these alliances?"
While Flatøy explains that their research is still in its early stages, several key benefits have already become apparent. For one, these alliances contribute to a healthier workforce, both physically and mentally, which not only benefits individuals but also reduces healthcare costs for society. Additionally, there is evidence suggesting that more people are encouraged to start families, a positive development for both society and the individuals involved.
“The leader of one of the alliances told us that they recently celebrated their eightieth child. This means that 80 children have been born since their parents were hired by the organization. While some of these children would have been born regardless, several parents openly stated that the sense of security they now experience has made them feel comfortable enough to have children with their partners,” Flatøy states.
Another significant advantage is the retention and development of highly skilled talent in industries with high turnover rates, especially in cases where freelancers or self-employed workers tend to leave at an early stage in their careers. By preserving this talent, alliances enhance the overall skill level within the industry, benefiting not just the individuals and the alliances, but society at large.
Finally, alliances focus on improving conditions not only for their members, but for workers across the entire sector. Through offering professional development opportunities to all industry workers, they contribute to the growth and sustainability of the sector as well as benefiting society as a whole.
Future prospects
Looking ahead, Flatøy’s goal is to publish multiple papers that will further test the model’s effectiveness and its contributions to areas such as job quality, employee learning, and the development of social capital. The team plans to survey members of these alliances across both Norway and Sweden to gain a broader understanding of the model’s impact.
In addition to academic research, there is a clear drive to seize the opportunity to document this emerging field before Flatøy takes a brief pause for paternity leave in the summer. As the project progresses, Flatøy is hopeful that his research will help shape the future of work for freelancers, providing a sustainable and supportive model that could be replicated across different industries.
“While this model is currently used in the cultural sector, I’m confident it could work in other industries as well. The key challenge is gaining political backing, but ultimately, the alliance model offers a way to stabilize industries during challenging periods - something every industry faces at some point,” he concludes.