15 or 250 NZD per hour? New study from Zealancer about rates of freelancers
The current hourly rate analysis of freelancers from 14 different categories listed on Zealancer has just been released. And the conclusion? An hourly rate comparison is actually always worthwhile!
On average, a freelance service provider costs $64.60 NZD per hour. A comparison of different service providers is always worthwhile, when deciding who to work with. This is due to the fact that the hourly rates do not only depend on the service and the service provider’s qualification. Other factors also play a role, such as gender and the age of the service provider, amongst others.
Surprisingly, even the hourly rates of comparable freelancers can differ by more than a factor of two. Additionally some freelancers even charge different hourly rates depending on the client and the scope of the project or their personal interest. The selection amongst equally qualified service providers can therefore save an average of 30 per cent in costs.
Let´s discuss the influencing factors on the hourly rate and examine them in more detail.
As expected, remuneration depends strongly on the type of the service. On average, a freelancer in the Secretary/Admin category charges $28.20 NZD per hour while a consultant charges $129.90 NZD per hour. Predictably, services requiring academic qualifications are better remunerated. Interestingly enough, the ability to deal with people is paid at a higher rate than pure professional knowledge. Thus engineers at average charge $65 NZD, while it is $69.70 NZD per hour for trainers.
The age of the service provider also plays a role. Older service providers are generally more experienced and are, on average, three times as expensive as young people. The average 18 to 29 year olds, charge a rate of $24.60 NZD, while for those over 50 the average is $76.00 NZD.
Gender has only a small influence on the requested hourly rates. Although men demand an average $65 NZD, which is more than women ($54.80 NZD), this could be due to the fact that women are more strongly represented in the less well-paid services. For example, 80 per cent of all secretary/admin providers are female, while business consultants have only a female share of 23 per cent.
Within a service category, the differences in remuneration are therefore small. For example; male graphic designers at an average of 28 NZD, are slightly below the from female graphic designers charge (average of $33 NZD).
Pricing on the basis of clear market criteria is only a partially happening in New Zealand. For example, very different prices are paid for comparable services without there being any qualitative reason for the disparity. We found that hourly rates vary widely within a type of service - there are IT experts, for example, from $15 NZD to $150 NZD per hour. Interestingly, this range also applies to comparable qualifications and experiences. Thus, when we compare IT experts with 10 years of experience and similar skills, the hourly rates can spread between $50 to $100 NZD.
A lack of market transparency can be contributing factor for the large spread of hourly rates. Both suppliers and customers are often poorly informed because they know only a few market participants. With the growing importance of electronic marketplaces in New Zealand, however, the information deficit is shrinking. Thus the service providers listed at Zealancer often orient themselves according to the hourly rates of fellow providers. A flexibility in determining the hourly rate is surprisingly high for many freelancers. If service providers discover that they are rarely selected, they often reduce their prices by up to 30 percent. Likewise, service providers who are in high demand in the marketplace often increase their hourly rates significantly as a result.
However, there is often more than just one hourly rate for a specific expert. Depending on the customer and sales channel, some specialists charge different hourly rates. In individual cases, the hourly rates that can be found on the freelancer´s website are twice as high as those listed on Zealancer.nz
It is therefore worthwhile for companies to compare the skills and hourly rates of freelancers. As our statistically selected samples showed, one saves on average, 30 percent if the cheapest service provider is selected out of five instead of resorting to the first available one. In addition, a larger pool often leads to the discovery of the most suitable expert. The classical way to compare providers is to ask for quotes from several service providers. While this process is time consuming for both requesters and providers, this selection can now take place in a few minutes thanks to the existing internet marketplaces. Therefore, there is no longer any reason to not compare the freelancers and their offers.
Service Category Analysis | ||||||
Service Category | Hourly Rates (in NZD) | Percentage (Share) | ||||
Average | Lowest | Highest | ||||
Accountant | 66.00 | 20 | 120 | 6% | ||
Consultant | 126.90 | 50 | 250 | 9% | ||
Craftsman | 47.50 | 25 | 65 | 5% | ||
Graphic Designer | 32.00 | 28 | 40 | 3% | ||
HR Expert | 71.25 | 40 | 120 | 3% | ||
IT | 51.65 | 15 | 150 | 28% | ||
Marketing Expert | 58.75 | 20 | 100 | 6% | ||
Project Manager | 82.80 | 30 | 135 | 7% | ||
Scientist | 57.50 | 25 | 80 | 3% | ||
Secretary/Admin | 28.20 | 15 | 36 | 4% | ||
Trainer | 69.70 | 30 | 100 | 5% | ||
Web Designer | 33.00 | 20 | 50 | 4% | ||
Writer/Copywriter | 49.00 | 35 | 70 | 4% | ||
Others | 80.00 | 35 | 120 | 12% | ||
Demographic Service Provider Analysis | ||||||
Demographic Service Provider Analysis | Hourly Rates (in NZD) | Percentage (Share) | ||||
Average | Lowest | Highest | ||||
All Service Providers | 64.60 | 15 | 250 | 100% | ||
All 18-29 yrs old Service Providers | 24.60 | 15 | 30 | 5% | ||
All 30-49 yrs old Service Providers | 53.80 | 18 | 250 | 52% | ||
All over 50´s Service Providers | 76.00 | 30 | 240 | 43% | ||
All male Service Providers | 65.55 | 15 | 250 | 70% | ||
All female Service Providers | 54.80 | 25 | 148 | 30% |
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This article was published in the Zealancer-News 64.