Upwork Study Reveals Companies Using Distributed Work, Flexible Talent, and Advanced Technology Achieve Higher Financial Performance
Upwork released the latest Report of the Founders of the Work today. The report reveals that companies that combine distributed work models, flexible talent strategies, and advanced technology are seeing better financial results than their peers.
The study, based on a 2024 survey of 1,500 global business leaders and financial data from 2021-2023, highlights how these high-performing companies – called ‘Work Innovators’ – drive innovation, reduce costs, and they improve financial health through refinement. their working models.
Key Findings of Upwork’s Career Innovation Report
Here are some key data points from this new study from Upwork:
- Better Financial Results for Entrepreneurs
- 30% lower operating costs.: Work Innovators reduce costs by improving processes and using AI and automation.
- 18% more likely to have good free cash flow: 57% of Work Innovators report positive cash flow compared to 39% of their peers.
- 13% low debt-to-equity ratio: These companies rely less on debt, maintaining healthy financial stability.
- Prioritizing Employee Engagement
- Work Innovators focus on overcoming cultural barriers such as resistance to change and lack of trust, by 60% making this a priority, relatively speaking 36% to their peers.
- 79% Work Innovators work diligently to build trust among all their employees, if only in comparison 50% of other companies.
- Closing the AI Adoption Gap
- 46% business leaders report that only a small percentage (1% to 25%) of their workforce is prepared to work with AI.
- 63% Work Innovators make skill development focused on the use of technology, in comparison 37% of non-Work Innovators.
- Balancing Internal and External Resources
- 85% Work Innovators view freelancers as essential to achieving their organizational goals, relatively speaking 65% to their peers.
- 91% Work Innovators plans to increase their use of freelancers next year, surpassing 71% of other companies.
- Work Innovators are 61% more likely to collaborate with managed services partners on complex business challenges.
“For decades, the prevailing belief has been that in order to grow and deliver financial performance, companies must invest heavily in cost-effective innovation strategies. Our latest report challenges this narrative, showing that organizations no longer need large budgets to lead their industries and demonstrate financial efficiency,” said Kelly Monahan, executive director of the Upwork Research Institute. “By focusing on internal innovation—embracing distributed work, implementing flexible talent strategies, and integrating advanced technologies—these companies, known as Work Innovators, are financially outperforming their competitors on metrics that matter most in today’s economic climate.”
This study shows that companies that use lean and lean strategies by combining distributed labor, flexible talent, and advanced technology not only drive innovation but also achieve stronger financial results.
