The freelance industry is rapidly growing, transforming workspaces and how businesses operate. Following the crisis in 2020, many unemployed folks and even independent professionals successfully transitioned into freelancing full time.
The growing number of freelancers doesn’t appear to be a temporary trend, as many companies see them as a viable option.
Human resource managers worldwide have been able to source top talent from a larger pool while saving costs.
From flexibility to enhanced operational dynamics, this guide reveals critical reasons why managing freelancers is easier and how their presence can align with your business goals.
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5 Reasons why managing freelancers is easier
In many ways, freelancers are easier to hire and manage compared to full-time employees. Having a reliable, freelance team will fulfil the work roles of in-house employees.
However, we’ve seen the former achieving productivity more quickly and reflecting a more flexible cost, with less investment from clients or businesses.
With that said, here are key reasons why companies can manage the freelance workforce better than full-time employees.
1. Access to a global talent pool
Companies can easily recruit specialists from a global pool of freelance talent. Sometimes, when companies post job ads in their location, they receive fewer qualified applications.
However, they can benefit from scouting for platform-specific skills across borders, without bearing the costs of relocating them.
Generally, hiring freelancers costs less and takes less time. Thus, this has become a common trend amongst businesses. Even top firms like Google leverage this, having more freelancers on their team than full-time workers.
Businesses that intend to expand globally will find freelancers a better bet.
With local remote workers, you can easily get a suitable individual who is more familiar with operating procedures and workflow at that stage of establishing your firm’s presence in that particular region.
Then, upon hiring a suitable hand, onboarding a freelancer is usually easier, depending on the hired person’s level of expertise.
Mostly, the freelance work model depends on independence, clarity, and efficiency, and the experienced bunch already understands their niche and streamlined project processes that meet clients’ needs.
There is often no need for extensive HR documentation, orientation, or integration for these part-time employees. Freelancers only need the essentials: brand guidelines, project briefs, communication tools, and, for a freelance writer, writing standards.
2. Cost-effective recruitment
As stated earlier, hiring independent contractors from the freelance pool is generally faster, which saves significant costs.
Also, most of these talents are highly skilled and will not need additional training. According to the Association of Talent Development, it costs an average of $1,252 to train an employee in the US.
Thus, managing a freelance expert will be relatively cheaper and easier than managing full-time employees, sometimes requiring no more than a few freelance team meetings to convey critical project details.
Also, businesses can save on salaries, life insurance, bonuses, and various statutory benefits, such as paid time off and Social Security. With freelancers, these contributions or work packages are not mandatory, which is great, particularly for small businesses.
These persons handle their own taxes and retirement savings, and receive payments only for billable hours. At first sight, some clients may think that a freelancer’s rate seems high, but you only pay for the work they do and nothing more.
3. Scalability and Flexibility
The flexibility of freelancing is another reason why managing freelancers is much easier.
Freelance contractors often operate with a different approach that allows each company to scale their workforce (up or down) to suit their project demands. Impressively, all these are attainable without long-term commitments, as seen with full-time employee hires.
For example, let’s assume your company requires a specific skillset for a short-term project. Rather than going into a full mode recruitment process for in-house employees, you can contract a professional freelancer.
This way, these contractors can work on irregular tasks when needed and be paid for them alone. Onboarding can be fast-tracked to finish up tasks with strict deadlines and handle workload spikes.
Thus, businesses can accelerate time-to-market, as a study by Harvard Business School found.
4. Fewer administrative burdens
Independent contractors do not need to be micromanaged, as they are mostly enlightened and understand their niches. These experts most likely have an established system that helps them get down to work comfortably and build a positive working relationship.
They work independently with very little supervision. So, the company’s resources don’t get wasted on training or managing these freelancers.
Most freelancers are familiar with project management tools such as Trello, Slack, Asana, and Notion. Thus, clients can expect a seamless experience in monitoring their progress and communicate in real time.
Similarly, freelancer payments are easier to handle, as the company doesn’t need to manage pension contributions or handle their payroll tax forms. Statutory benefits are also out of the deal, as clients don’t need to pay for time-offs, sick leaves, or maternity leaves.
The self-sufficiency of a freelancer poses fewer burdens and financial risks on businesses. A simple digital invoicing system can get freelancers’ fees sorted, saving time and resources, while enhancing operational efficiency.
5. Task-based engagements
Unlike full-time employees, freelancers, as specialist hires, work on project-based engagements. Except for clients looking to build long-term relationships (for future projects), the interaction ends once the deliverables are ready.
During the work period, freelancers can work alone or collaborate and share knowledge with others on the same team when necessary.
The focus is on outcomes; these individual contractors employ their expertise to ensure they meet the company’s objectives and deadlines. Businesses can also provide feedback in between to achieve better outcomes.
And, many businesses do this!
As Deloitte reported in 2021, enterprises outsource about 50% of their tasks to shared service providers. These include one-off projects, retainer-based or ongoing hourly work, and part-time (or even full-time) contingent freelance contracts.
Notably, freelancers can provide a bird’s-eye view of many projects, drawing on their past experience with small and large, successful and flopped tasks across varying industries and operational practices.
How do you hire freelancers?
As an HR or business professional wondering how to scout for a suitable freelance talent or hire the right freelancers, you should know that the process isn’t complicated. Compared to full-timers, hiring freelancers is quicker and involves fewer administrative requirements.
First, you must set clear expectations and establish a scope of work; you can create a checklist if necessary.
Doing these will ensure that you end up with the right team of freelancers.
Then, determine your budget for the project and provide a job description (consisting of start/end dates, payment terms, deadlines, and suitable qualifications). Now, you can kick off your search for a freelancer!
The search can be on any social platform, such as LinkedIn, Twitter (X), Facebook, or on specific freelancer marketplaces or job boards.
Upon receiving applications from potential candidates, you can evaluate their experience and prepare an agreement or contract for suitable candidates. Unlike full-time employees who require long-term agreements or contracts, most people work on a project basis.
And after the work is done, ensure you maintain a friendly relationship with the freelancer. Don’t shy away from asking about their availability for future tasks; this way, you can build a reliable freelance team for ongoing gigs.
Possible challenges with freelancers (and solutions)
When considering hiring a freelancer, there are a few potential limitations, and it is important to find ways to overcome them.
Whether an individual contractor or a team of freelancers, remote work roles require clear and effective communication. Some companies have encountered that “unresponsive freelancer” at least once.
Such poor communication can be due to heavy workloads, as freelancers often work with multiple companies simultaneously.
However, when a freelancer goes mute for a significant period, it is a red flag. Reliable people are proactive communicators and flexible with their hours.
Rather than taking on more work than they can handle, they focus on a few clients at a time and have a good work-life balance. Hence, it is important to screen for these qualities during the hiring process.
Another issue is getting someone who can do a top-quality job.
No doubt, there are widely sought skills across the freelance economy, but it is imperative to scout the best options. On many freelance job boards, you can read reviews of top freelancers, especially as many previous clients provide feedback.
These skilled counterparts are a game-changer, as they develop a smooth system for quality deliverables.
in this sense, you should rely on a job platform that guarantees proper professional conduct of freelancers or ask colleagues for recommendations.
Also, businesses should set expectations and organize onboarding sessions with clear communication about their scope, payment terms, and project templates to ensure both parties are on the same page.
Conclusion
Mostly, it is easier to manage freelancers effectively, as independent professionals require little to no training and help businesses save on hiring and ongoing operations costs.
Also, they gain significant knowledge and skills from working on diverse projects, which offer helpful insights to your business.
An effective collaboration is also possible, with asynchronous communication. Companies can offload the burden of hiring a freelance team by relying on reputable job platforms.