All Things oDesk
August 25, 2014 by Guest Blogger

Dear oDesk Community,

As head of Operations at oDesk, I’m here to introduce an upcoming policy change that I believe will make oDesk a better workplace for everyone.

Policy update

Beginning November 15, 2014, we will introduce a minimum rate of $3.00 per hour (including the oDesk fee) for all new hourly contracts.

We will continue to honor the hourly rates of contracts formed prior to this date, and clients and freelancers who have previously worked together at less than $3.00 per hour can form new contracts with no minimum requirement.

Why have we made this decision?

Our vision

Our vision is to be the world’s largest, most trusted online workplace, known for top-notch talent and jobs. This means attracting and retaining freelancers and clients who value quality above all else.

Individual freelancers are in the best position to set their hourly rates according to their experience level, skills, and cost of living realities. However, in certain circumstances, we’ve seen that some freelancers feel compelled to lower their rates too far in order to win new work. This can result in sub-optimal work quality and low customer satisfaction. In this context, we believe the new hourly minimum will benefit the entire community by setting an expectation of higher pay for higher quality work. More importantly, we believe this change will, over time, encourage more great freelancers and clients around the world to work on oDesk.

Introducing a minimum rate

While we recognize the complexity of our marketplace—from the large differences in earnings around the world, to the diversity of work done on our platform—we believe $3/hour strikes the right balance between discouraging low-quality work and minimizing disruption to client-freelancer relationships. Though a single minimum rate is an imperfect solution, we feel it’s an important step toward making oDesk a great place to both work and get work done.

Our customers

Today, only 3% of freelancer earnings are below the new minimum. However, we do not take lightly the impact this policy may have on all the clients and freelancers who rely on us for their businesses and careers. In particular, we’re sensitive to the relationships our clients and freelancers have already formed with one another. Thus, this policy will apply only to new client-freelancer relationships formed on or after November 15, 2014. We will continue to honor the hourly rates of contracts formed prior to this date.

For answers to how this policy impacts you, we’ve developed a detailed set of Frequently Asked Questions:

Client FAQ

Freelancer FAQ

If you have any further questions, we encourage you to contact our support team, who are standing by to help.

I, along with the rest of the oDesk leadership team, truly believe our community as a whole will benefit from this transition. I want to thank you, our customers, for your understanding and support. As we look ahead to the future, we’re excited to work for you —and with you—to build a workplace for the ages.

Sincerely,
Elizabeth Tse
Senior Vice President, Operations
oDesk

 

Elizabeth Tse

Senior Vice President, Operations

  • Odesk-Ass-holes

    well done
    a person in another country who can barely speak or write english but can do data entry quite fine is going to be out of work…. thats just the way it is.

    he was on $1 now he is on $3
    The $3 freelancer sees this and increases his rate to $6-$8
    The $8 freelancer increases his rate to $11-$12
    And so on and so on.

    Now im thinking hmmmm i wont hire anymore from India, Bangladesh or Pakistan because they want $8 – $15 per hour now – so i can hire a US or Western European for this same amount who speaks fluent english, no barriers to communication…

    Which ever odesk A$$hole implemented this has never worked for themselves, has no clue about economics, no understanding of what $3 per hour means in India.

    The only people smiling are the employers in India/Pakistan/Bangladesh who are going to have a flood of new candidates looking for work cause they cant find any more work online.

    Im at the point of thinking ” well if i must pay this amount, then i will simply post jobs on the gum tree in my own country or use craigslists for my local city”

    Odesk idiots – this is what happens when you think you are bigger than the markets – oh well 4,000 years of economics will teach you

    Odesk did the same thing when they hid applications they soon found out who their bosses are 1. Those posting jobs 2. Those working the jobs

    Stop interferring with a market place,

  • Muhammad Anwar Nadeem

    I appreciate this nice decision; however, some jobs are
    extremely simple, as compared to some administrative support, and other jobs
    are highly complex or require a great deal of prior study and experience and
    are worth paying far above $3 for. Moreover, freelancers having worked more
    than 500, 100 and so on should also be given their due value.

    • sadia mughal

      Ok

    • sadia mughal

      Hi r u there now?

    • Irfan Masih

      Dear, my work were going well and suddenly don’t know why oDesk suspended my account, is it possible i get my account back ?

      • sadia mughal

        I also suffering from this kind of error. My account is suspended and don’t know when it will be recover. I need to solve this problem but Odesk taking much time for it and it is very bad.

        • Muhammad Anwar Nadeem

          you should contact to oDesk customer service https://support.odesk.com/home

        • Irfan Masih

          yes, i know. how can we voice talk, having no time to type, please…

        • Irfan Masih

          send me message in my odesk inbox messages

        • Irfan Masih

          you there ?, send me your odesk profile link

        • Irfan Masih

          you there ?

        • Irfan Masih

          Hi, is your account is running now… ?

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  • Adnan Kadir Peal

    Good decision. Thanks to oDesk. I am happy to this odesk decision .

  • Devin Kerns

    This is a poor idea, the market rate will always be the most efficient wage. If you wish to go against the market determined wage, so be it, but why not $15 or $20? $3 is arbitrary and far from the equilibrium for simple copy/paste jobs. You are simply create excess supply while shrinking the demand. It will be extremely difficult for those with weak skill sets (The people who need jobs the most) to break into the freelance world and develop their skills and ratings. Good riddance, I feel bad for those desperately needing a job that pays almost anything. Well at any rate, good luck fighting economics!

  • Eurovisionacts

    I would like to thank odesk for eliminating all new competition in my niche due to your mininum wage increase. I am happy with my $1 / hr workers who provide me with good work. All the competitors now can’t compete with the 3x wage increase. Thanks again odesk!!

  • Pingback: oDesk Now Have A Minimum Hourly RateRaketista | Make Money Online | Work At Home Jobs | Home Business Ideas |()

  • Maritza Gonzalez

    @disqus_gzxLqOx7q7:disqus, If you are satisfied with the work provided by a contractor from another country at the rate of $1.50 then you are one of the lucky one. I am a freelancer as well as an employer, I have experience both sides. I feel that paying a bit more for someone in the USA will bring to you, as a business owner an additional benefit: peace of mind. This policy will take oDesk to another level and I hope that it will also benefit those high level experience contractors in other countries.

  • http://www.winnersguide.com Kyle Hill

    I’m noticing all the comments are from the freelancers. In my opinion this is absolutely ridiculous, who are oDesk to dictate market conditions? As an employer on oDesk, I use the website as a tool for finding and managing employees. I don’t expect to be told what to pay or how much to pay. I’ll find employees elsewhere thanks. (My average wage is above $4/hour) but I don’t thinks it’s fair to expect employers to pay a minimum of $3/hour for tasks that people are comfortable and willing to do for $1.50/hour. I believe as long as the employee is earning enough to enjoy their lives and have a comfortable standard of living, then its at our discretion to negotiate a minimum hourly rate – not oDesks. The employees will lose out on this.

  • http://www.winnersguide.com Kyle Hill

    I’m noticing all the comments are from the freelancers. In my opinion this is absolutely ridiculous, who are oDesk to dictate market conditions? As an employer on oDesk, I use the website as a tool for finding and managing employees. I don’t expect to be told what to pay or how much to pay. I’ll find employees elsewhere thanks. (My average wage is above $4/hour) but I don’t thinks it’s fair to expect employers to pay a minimum of $3/hour for tasks that people are comfortable and willing to do for $1.50/hour. I believe as long as the employee is earning enough to enjoy their lives and have a comfortable standard of living, then its at our discretion to negotiate a minimum hourly rate – not oDesks. The employees will lose out on this.

    • Odesk-Ass-holes

      Yes i agree, i can hire someone in America for the same skills now as someone wants in India for between $11-$15 so no need for odesk anymore.

      All the people saying thanks are saying thanks to pay cuts, they have no idea about economics and you can clearly see that from their comments

  • http://www.touchyfashion.com ABM Mainul Haque

    Good decision. Thanks to oDesk. Like this, the authority should find a way on “Fixed Price” system too.

  • Experienced Economist

    This is a really bad idea. Minimum wages are never good for the masses and a single, flat minimum on a global marketplace like odesk is beyond ridiculous for so many reasons.

    In some countries, due to the cost of living and average wages in that country, $3USD/hr (or less) is an excellent wage with which a person can sustain their household and live more than comfortably. In other countries, $3/hr is abysmally low, there is almost no job worth doing for that amount, and a person wouldn’t even have a place to live on that amount. This vast disparity alone is reason enough for a flat rate minimum to be an unquestionably bad idea.

    In the same way, some jobs are extremely simple, like copy/paste jobs, and are not worth paying $3/hr for and other jobs are highly complex or require a great deal of prior study and experience and are worth paying far above $3 for. This disparity is another reason why a flat minimum is ridiculous. The pay should match the job and not every job out there is a $3/hr job.

    The effects of a minimum are almost always the same and never good for more than a few people.

    Since the price of labor is artificially increased but the employers’ budgets are not, employers must hire fewer employees and thus fewer people will be employed at the higher rate and more people will be unemployed. Usually earning $1-2/hr is better than earning $0/hr.

    Since having fewer employees does not reduce the work the employer needs done, those who are hired will be required to do those small, simple $1-2/hr jobs, so they will have to work harder and waste more effort doing menial tasks instead of improving the quality of their work.

    Since odesk is not the only online labor marketplace, employers who do not want to pay over $3 for a particular job will go elsewhere to find employees and fewer jobs will be offered on odesk.

    Competition for getting hired will become even more tough for employees as more unemployed people apply for the fewer available jobs and those with little or no skills (but who could do simple jobs like copy/paste for less money) will be beat out by those with more skills and thus not be able to work on odesk. So people who could have made a nice living, by their standards, doing a simple job, will instead find themselves unable to get hired at all.

    This decision is not really good for anyone.

    It is somewhat worse than neutral for people with more experience, more skills, and more reputation – they are the few who will continue to be hired, but they will have more work to do to pick up the slack and they would have continued to be hired anyway, probably for $3/hr or more anyway.

    This decision is bad for employers and the many, many less skilled, less experienced workers out there with little or no reputation, who will no longer be hired at all.

    Even odesk probably thinks they will make more money from their commission, and it’s hard to say if they really will. They will make more from each contract, but there will be fewer contracts. It just depends on the ratios whether it works out for them or not. I’m guessing it might improve their margins slightly. And of course that’s all odesk really cares about. Making money. Not you or me or the workers around the world. Do not be fooled. Their real visions is this: $$$$$$.

    • http://www.touchyfashion.com ABM Mainul Haque

      I appreciate this view as well as the oDesk’s decision. Actually, who works on oDesk? Those, who has a minimum knowledge of technology, language and other skills. So, a skilled (though minimum) freelancer shouldn’t be paid lower than the “International standard labor wages”. On the other hand, there are lots of people who really really in need of a job, not considering whether it is “low paid” or “high paid”.

      Thinking overall the situation, my view is, the wages should be minimum $1/hr for newcomers. Indeed, the freelancers will not get that $1 in hand at all, because of oDesk transaction charge, conversion rate etc. Then oDesk can set some “Experience Level”. A freelancer with the experience of 100 oDesk hours or 3-5 job experience could set there hourly wage as $2/hr. Over a 500 hour working experience one can set their wage as $3/hr or above.

  • masudbcl

    I appreciate this decision for every hour 3 usd from nov 15. Thanks to odesk.

    Happy odesk ing.

  • Pingback: Regarding oDesk’s Recent Policy to Enforce Minimum Rates for Jobs | Tips for Skilled Freelancers()

  • leoj

    Excellent decision odesk. Heard a few employers they just using odesk to use odesk software with a very low rate per hour to track their workers. In fact, $3 is just too low.

  • Klaus Weinz

    Newbies will have a hard time.

  • Muskan Maria

    That is great.Now client like rayan dsouza can”t bother people on odesk.

  • WhiteDove23

    This hourly rate is extremely way too low; it’s not even minimum wage. A higher rate will carry a psychological marketing advantage for Freelancers by showing the client that there is high quality Artistic Process involved in the production of projects. A low rate indicates poor quality. It’s better for negotiations to start with a higher rate and come down if needed, than too start with a lower rate then attempt to increase it. If you use $3 then we will be stuck there for a long time.

    • Ben

      its above minimum wage on other countries.

  • Djamal Jose Antonio Soldado

    This should have implemented years ago but still a sweatshop rate.

  • http://eduinfobangla.blogspot.com/ Sarwar Jahan

    This is a right step on right time. This is an excellent decision. Thanks a lot to oDeskTeam

  • Rabiul Ialam Anik

    I want to give many many thanks for oDesk management.

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  • Kas Thomas

    Your “vision” of “elevating” people is $3 an hour? Seriously, you’re BRAGGING about this?

  • haripria

    I am happy to this odesk decision .

    • charles

      HI haripria.

  • Mjaka Flani amekasirika

    This is amazing. loving this. at least you have realized that freelancers are not slaves. however i am not affected by this change as I never apply lower than $5/hr

    • http://www.touchyfashion.com ABM Mainul Haque

      Well said.

  • Rana Ahmed Khan

    Odesk platform is improving day by day..I really feel proud to be a member of this community.

    Odesk changed my life.I will change odesk by quality work.

  • Archie Montoyo

    It would be better if oDesk management had decided and implemented this a decade ago.

  • arif

    this is very great decision. I really like that

  • https://www.odesk.com/users/~01a0af33a18160319a Asadul H.

    Welcome!!!

  • Rezaul Faruque

    As a freelancer, I welcome this decision. Some clients don’t want to pay the right wage for a work. But quality works takes time and labor, either physical or mental. This minimum rate will definitely improve the quality of works.

    Thank you for taking such a great decision!

  • Argelo Duran

    Great decision by oDesk!

  • http://www.facebook.com/Zibonnnn Khalid Hasan Zibon

    Many many thanks to oDesk Team for this decision!