Does The Design Industry Need to Do Better?

“For a lot of businesses, freelancers remain a dirty secret. Many companies are reluctant to admit they’re using independent talent — they won’t tell their clients that freelancers are working on their accounts. It’s a strange double standard,” says Matthew Knight.

So says Matthew Knight. In 2017, he founded Leapers, dedicated to understanding and improving the mental health of freelancers. As part of its mission, he conducts an annual survey of freelancers — the vast majority of whom work in creative industries. The most recent findings are concerning:

• 45% of freelancers reported a decline in their mental health in 2024, and
• Two-thirds said stress, anxiety, or poor mental health had affected their work effectiveness at some point over the past year.

And the most recent results make pretty grim reading.

While the sluggish economy has certainly played a role — with Knight describing 2024 as “probably the worst year on record for freelancers” — other factors are at work.

Although freelance rates increased by about 3% last year (as noted by YunoJuno), inflation rose by 3.5%. With overall budgets dropping and more freelancers entering the market, more people hustle for less work.

Data from Leapers suggests that between 25% and 30% of current freelancers did not choose this work style. Many were pushed into freelancing after being laid off as companies downsized while others turned to it because of personal commitments, a refusal to return to the office, or challenges related to neurodiversity and disability.

Some of this cohort finds that freelance life suits them well, but it’s a precarious necessity for others.

Bad Clients

Knight explains that freelancers’ challenges extend beyond macroeconomic factors. Many are struggling due to poor treatment by clients. Consider these findings from Leapers:

• 28% experienced bullying, harassment, or abuse.
• 79% felt undervalued.
• 80% had projects cancelled.
• 72% were ghosted.
• 72% had to chase late invoices.

On LinkedIn, nearly every day, freelancers call out companies for unpaid bills, often involving staggering sums.

“Yes, there is a challenging economic backdrop, but that doesn’t excuse late payments,” Knight asserts. “The crisis in Ukraine doesn’t stop companies from finalizing contracts. It’s about responsibility, accountability, and recognizing that freelancers are a vital part of many businesses.”

There’s also a commercial case to be made. “If you don’t support freelancers to do their best work, they won’t, and your project costs will rise,” he warns.

Freelancers are quick to share red flags about problematic clients, a poor reputation in the freelance community can quickly deter new talent.

Practical issues compound these challenges. Informal arrangements often mean work starts before a proper contract is in place. Onboarding is minimal or nonexistent, and many freelancers are required to sign NDAs that prevent them from showcasing their work.

Even recognition in award submissions is rare. Moreover, payment delays, even a 30-day term after a six-week project — can mean the difference between paying rent on time.

The New Way of Work

Not all is bleak. Knight is encouraged by the emergence of a new way of working in which businesses build small core teams supported by on-demand freelance specialists. These companies are “openly, actively, and proudly leveraging freelancers” to work on larger-budget projects. “The market is maturing, and that’s a real positive,” Knight notes.

A case in point is Leeds-based GIRL studio. Its founder, Roz Donaldson, is intentional about making every freelance contributor feel included.

“We don’t just bring people in to execute tasks, we involve them in the creative process, from ideation to decision-making. Every project feels like a partnership, not a transaction.” — Roz Donaldson, founder of GIRL studio.

Donaldson believes the key is in the design leader’s mindset: “It’s about treating people as peers rather than suppliers. Give them the space to challenge, suggest, and refine ideas — not just follow instructions. When freelancers feel that their input matters, they care about the outcome.”

Building a culture with freelancers, like with permanent employees, may require more time and effort — but it’s essential for creating a positive experience.

Minnie Moll, Chief Executive of the Design Council, insists that this conversation is critical. According to the latest Design Economy report, nearly half of the design workforce is self-employed.

“Freelancers are the backbone of the design economy,” Moll says. “They bring fresh thinking, specialized expertise, and adaptability. To build a fairer, more sustainable working culture, studios and businesses must prioritize clear contracts, prompt payments, and opportunities for skills growth. When freelancers thrive, the entire design industry benefits, fueling innovation, resilience, and long-term success.”

What Can YOU Do?

When collaborating with freelancers, Knight urges design leaders to ask both practical and strategic questions:

1. What value can independent talent bring to your business?

Matthew Knight challenges design leaders to rethink the role of freelancers. Independent talent is not merely a stopgap for when a full-time employee is unavailable.

Instead, freelancers offer specialized expertise and fresh perspectives that can help businesses expand their capabilities and scale operations.

By embracing the unique contributions of freelancers, companies can unlock new potentials that drive innovation and create competitive advantages.

2. How can you build a trusted, proactive network?

Knight emphasizes the importance of establishing a proactive network of freelancers rather than a reactive pool. Building this network requires intentional effort: invest in fostering relationships that are diverse, inclusive, and based on mutual trust.

This approach goes beyond transactional engagements, aiming to create partnerships where freelancers feel valued, supported, and integrated into the company’s culture. Such strategic collaboration enhances project outcomes and builds a resilient talent ecosystem.

Recognizing the many pressures, from a sluggish economy to complicated tax and legal frameworks (IR35 concerns often stemming from misunderstandings). Knight offers some immediate steps:

1. Sort out your invoicing: Ensure freelancers are paid fairly and on time.
2. Work only with those on contract: Avoid ad hoc arrangements.
3. Onboard properly: Communicate where freelancers can find support.

Without these measures, freelancers will continue to struggle and won’t hesitate to warn their peers about difficult clients.

Design Crossroads

The design industry stands at a crossroads. On one hand, the current economic challenges and poor client practices are taking a toll on freelancers’ mental health and financial stability. On the other hand, innovative practices that embrace a collaborative, respectful, and inclusive approach to freelance work pave the way for a more sustainable and creative future.

By rethinking how we work with freelancers, design leaders can mitigate these challenges and harness the full potential of independent talent to drive innovation and growth. It’s a call for greater responsibility, accountability, and partnership — to build a fairer industry where every creative voice is heard.

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