Why pay someone by the hour who may not be consistently productive when you can simply pay for the actual work completed? But employers need to understand that, like every other aspect of business, there are pros and cons to hiring freelancers.
A freelancer is a person who earns money on a per-job or per-task basis, usually for short-term work. A freelancer is not an employee of a company and therefore may be free to complete different jobs simultaneously for multiple people or companies, unless they contractually agree to work exclusively until a particular project is completed.
Freelancers are generally considered independent workers and may perform their work on a full-time contract basis or as a side job to supplement full-time employment, time permitting. Freelancers, as independent contractors, typically require signed contracts to perform work and will agree to a predetermined rate based on the time and effort required to complete the task. This rate may be a flat rate or an hourly, daily, or project rate, or some other similar measure.
A freelancer tends to work in the creative, skilled or service sector such as film, art, design, editing, copywriting, proofreading, media, marketing, music, acting, journalism, video editing and production, illustration, tourism, consulting, website development, computer programming, event planning, photography, language translation, tutoring, catering and many more.
Pros and cons of hiring freelancers
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Pros
Cost reduction
Even at a higher hourly rate, you can expect to save 20-30 percent annually with a freelancer, considering you don't have to pay for benefits like health insurance and retirement, etc. If your worker is remote, you also reduce the need for office space and cut down on office supply costs.
Risk reduction
Since freelancers are not employees, employers' risk is reduced. Freelancers don' philippines phone number example t collect unemployment insurance or workers' compensation benefits. If they're not working, they're also easier to terminate and replace. This is particularly helpful in states with laws that create exceptions to at-will employment.
Immediate access
With the meteoric rise of talent search platforms, you can find even the most unique worker to suit your needs. There are platforms to hire IT professionals, academics, writers, designers, marketers, accountants, lawyers, sales staff, business consultants, and more. Once you find the talent you need and they agree to the terms, they will start working as soon as possible.
Quality
Freelancers run their own business, which thrives on repeat work and repeat clients. They strive to deliver their best work, every time, to maintain the relationship. While staff members' performance may have ups and downs, freelancers know that the contract is always subject to renewal.
Global reach
Companies turn to freelancers to find talent outside their geographic boundaries. You can expand or understand new markets on a limited budget. Using a freelancer can open the door to growth while minimizing risk if things don't work out.
Contras
Excessive multitasking
A freelancer's job is to develop your company's ideas. You need to make sure they're available on your schedule, not theirs. They can be great when they're accessible, but be prepared with a Plan B if they're not. Many companies hire a team of freelancers, so they always have backup.
Difficulty in relating to customers
If you're looking to build a clientele, a freelancer may not be the best choice. In-house employees are privy to everything going on in the company and can leverage that knowledge to your advantage when building relationships with clients. Freelancers don't have that access.
Training and supervision time
How much time will you need to invest in training? If there's a long wait time to get things up and running, using that investment on a full-time employee might be a better option. And if the position requires supervision, hire an employee. A freelancer may choose to do the work outside of normal business hours, when you can't monitor their progress.
Little commitment to the company
While a freelancer wants to keep you as a client, the individual success of your company is not their priority. A full-time employee is likely to feel a higher level of commitment to your organization and therefore be more motivated to contribute to the bottom line.
Hiring the right workers depends on your company
Regardless of whether you choose to hire a part-time worker, a full-time worker, or a freelancer, it is absolutely crucial that you are crystal clear about the expected results and contract terms before hiring someone. It is equally vital to provide your workers with measurable goals and deadlines to avoid confusion, wasted time, and endless negotiations.