Minimum Wage Issue in Online Freelance Job Sites
photo credit: ba1969 (SXC)
One of the hottest debates in most online job marketplaces is when minimum wages are being discussed. I’ve often seen this discussion in forums of online job sites. Online freelancers often have mixed feelings on this issue. One group of people accepts the reality that freelance jobs should NOT have minimum wages. Another group of freelancers asserts that there should be a minimum wage that online job board sites should implement. There is even a minority who got some ideas on that seem to combine the best of both minimum and non-minimum wage implementation.
Right Now
Most online freelance sites do not dictate any minimum wage restriction. Freelancers at matured economies like the US often find out that there are some job openings that are awarded to those in the emerging economies like the Philippines. The freelancers at emerging economies charge a lot less than to those living in matured economies. The difference in the standards of living is a huge factor why emerging economies charge lower than that of the matured economies. Some freelancers from matured economies express their concern that their charge is no higher than getting employed. Thus, the minimum wage issue is always proposed.
Others point out that many clients open low paying jobs to online job sites. I’ve often seen data entry jobs that come with even less than a dollar per hour. Providers at matured economies may attempt to submit their intention but bid to higher rates. In the end they lose the job to some freelancer living in India. Since there are freelancers who accept such jobs, clients are excited about getting huge savings in outsourcing jobs to countries like the Philippines.
I Say
I do not like to have the minimum wage rule implemented in online job sites. I believe that the solution to raise the price of a particular outsourced job is NOT to apply low paying jobs. As long as there are freelancers who accept job at lower rates then clients would believe that this particular job costs at a given rate. Besides, complainers who start this kind of discussion in the forums are often those who signed up for just a day to a week, without exerting any effort to apply to jobs. Successful freelancers living in matured economies do not compete at the rates that emerging economies charge. These complainers often like to stir some issue in the forums, in the hope of getting noticed. I think they just like to get the all the attention which the heated discussion fuels them up. There’s no point convincing them that they do not have to charge the same rates.
Do you think minimum wage is a must in freelance job board sites?
Phil Benwell
August 22nd, 2008 at 4:17 pm #
I think the idea of introducing a minimum wage would drive people away form those sites. I live in the UK and the dollar is so weak against the pound right now that I basically half the dollar amount I earn on US jobs and then make my mind up weather the job is worthwhile. Each person has their own minimum wage set and that can vary on their situation at that time and the amount of work they have on.
I say leave it up to the individual to set their limits.
KattXact
October 10th, 2008 at 10:30 am #
Hi Gem,
My name is Katt and I have been working at home for almost 3 years now. I do reside in Manila and I certainly agree that there should be a minimum wage for online jobs. As a freelancer, I have a few experience on the ups and downs of freelancing. Many of those buyers on sites such as Odesk or Elance take advantage of those who are on the third world countries because of low cost wages. I would not blame them because that is the most logical way to get ahead of their business. However, if we take a closer look at the modes of payment which are Paypal or Payoneer, they charge at least $2 per withrawal. The jobs offered sometimes on those sites is amounting only to $1 per hour. Now these jobs are not plain and simple. They do take some time to complete and they need special skills from individuals that we Filipinos can provide. It is just sad that because of poverty and perhaps our culture many of those buyers are taking advantage of our brothers and sisters who are desperate enough just to get a dollar so they can provide something for their families.
Gem
October 10th, 2008 at 7:00 pm #
@KattXact
Thanks for the input. I always really see two groups of freelancers on this issue. The debate and discussions on this had never ended in many freelance forums.
On my side, I think it is better for third-world freelancers not to accept low paying jobs. As long as buyers see that they can hire a freelancer who can do a good job at lower rates, buyers would seem to take advantage of the lower rates.
If there would be a minimum wage imposed, I think that all freelance sites should agree to set a minimum wage. Not one freelance site – but every site involved with providing these services
Likke
January 24th, 2009 at 1:45 pm #
I tried posting my rate to $0.01 on oDesk and guess what. The interviews came pouring like rain. One buyer even said he liked my rate and would be willing to give more than 1 cent. I raised it again to $20 and not one buyer heeded. I believe these “businessmen” are just your typical slave drivers. They just can’t understand that we are human too for crying out loud. They feel so powerful with their dollar.
Likke´s last blog post..The "Don’t Mess with a Blogger" post
Gem
January 24th, 2009 at 11:52 pm #
You did? Interesting! Once that you were interviewed, did you try to negotiate for the rate that you wanted?