Pros and Cons of Hiring Freelancers
Freelancer
The term freelancer or freelance worker generally used to refer a person who is self-employed and is not necessarily committed to a particular employer long-term.
Over the last decade, the gig economy has changed the way we work and do business across the world. Access to remote work has changed the definition of work and workplace radically. Hence people are working from home or off-site, and more and more people are working as consultants or contractors. A recent study shows that 53 million Americans — a massive 34 percent of the workforce — are now freelancing, be it as their main or supplemental income. This population contributes $715 billion each year to the economy through their freelance work.
If this seems like a bunch, the gig economy is just probable to grow. By 2020, 40 percent of the U.S. workforce is expected to be independent freelancers. So why the growth in freelance work? During the Great downturn, several employers began slashing costs by cutting back on benefits. Additionally, advances in technology continue to make easy flexible and remote work. And there’s been a stable increase in platforms that match freelance talent with employers, like Upwork.
The growing of the freelance nation has mostly been a win-win from both sides of the desk. Employers experience financial savings with independent freelancers and lower their risk. Workers use freelancing to tide them over between jobs, to add to income, and some are in it for the flexibility. It’s hard to undervalue the power of perks like the ability to work around family and schedules, travel, and of course, not having to wear shoes to work.
By the same token, both companies and workers may not want to go the freelance way. From the employer’s point of view, they may favor the implied commitment that goes along with a full-time employee. Workers may favor the stability of a full-time job, like health insurance and a retirement fund desirable.
So is hiring an independent freelancer the right choice for your firm? Let’s walk around the pros and cons.
Pros
Cost
Even at a higher hourly rate, expect to save up to 30% annually with a freelancer when you factor in not having to pay for benefits, like retirement, as well as Medicare and Social Security. If your employee is remote, you also reduce the need for office space and lower your office supply costs.
Risk Reduction
Freelancers are not employees, employers’ risk is reduced. Freelancers have no right to collect unemployment insurance, nearly never have a right to workers’ reimbursement benefits, nor do they commonly have the right to sue for harassment or discrimination. If they’re not correctly working out, they’re also simpler to terminate and replace. This is particularly useful in a state with laws that create exceptions to employment-at-will.
Access
With the dramatic rise in talent-pairing platforms, you can discover even the most unique worker to meet your requirements. There are platforms to hire IT Professionals, academics, writers, designers, marketers, accountants, business consultants and more. Once you find the talent you require and you agree to terms, they start working ASAP.
Quality
Freelancers run their own business, which prospers on repeat work and repeats customers. They strive to turn in their greatest work, every time, to maintain the relationship. While staff members’ recital may have peaks and valleys, freelancers know the contract is always subject to renewal.
Limiting Payroll
Several companies cite legislative measures to keep their headcount low. For the reasonable Care Act, having 50 or more full-time employees needs compliance; for EEOC only 15. Using freelancers who are not deemed employees can help get work done, without adding to headcount. But beware: Just calling someone as an independent freelancer doesn’t make them one according to the IRS.
Global Reach
Many Companies find to freelancers to find talent outside their environmental limits. Understanding of new market can be made with a finite budget outlay. Using a freelancer may open the door to expansion while minimizing risk if things don’t work out.
Cons
Multi-Tasking
An independent freelancer job is to expand their business. You need to make sure they’re available on your schedule, not theirs. They may be excellent when they’re accessible, but be prepared with a Plan B if they’re not. Several companies hire a team of developers, so they always have a backup.
Relationship Building
If you’re looking to develop customers, a freelancer might not be the greatest choice. In-house employees are aware of everything that’s going on in the company and can leverage that knowledge to your benefits when building relationships with customers. Freelancers don’t have that access.
Training and Supervision
What amount of time will you require to invest in training? If there is a long time for them to get up and running, using that investment on a full-time employee might be a right option. And if the position requires supervision, hire an employee. A freelancer might select to perform the work outside of normal business hours when you’re not able to monitor their progress.
Investment
While a freelancer wants to keep you as a customer, your company’s individual success is not their main concern. A full-time employee is likely to feel a higher level of dedication to your organization, and therefore more motivated to add to the bottom line.
Conclusion
The gig economy is permanently changing the landscape of the workplace. Hiring an independent freelancer isn’t the right call for all positions, but a freelancer is a great solution for short-term projects. As long as you classify correctly, there are more ways than ever to find the right mix of in-house and freelance talent to grow your company. DeveloperOnRent offers dedicated developers for hire with the expertise in developing mobile apps and web applications across various sectors. Some of the areas we have worked for are Healthcare, Logistics, E-commerce, Finance, Social, Analytics, Travel, and Edu-Tech.
this article was originally published in DeveloperORent
