How to Be Fiscally Fit with Freelancers

How to be fiscally fit with freelancers

Thanks to advanced technology, companies in various industries can utilize freelancers and independent contractors instead of hiring for every position. With modern phone systems, the internet, and online databases, it can seem as if the freelancer is in the cubicle next to you instead of half a world away. Companies can use this option to reduce costs while hiring the best workers for the job.

Stay Fiscally Fit

To survive in today’s business world, companies have to look for every advantage and cut costs where they can. Hiring freelancers is an option to reduce one of the biggest expenses in any business – staffing. A company can save money with freelancers because they don’t have all the added costs on top of salary, such as training and benefits.

Let’s explore how hiring freelancers vs. direct hires can help you stay fiscally fit. With a direct hire, you pay HR to go through applications, do background checks on and conduct interviews with those who seem like a reasonable candidate. Once hired, they may go through significant training. If it’s a full-time position, you will need to ensure their 32-40 hours each week are filled with work to maintain optimal productivity. As a full-time employee, there will be benefit costs as well.

With a freelancer, you pay only for the work they do and the time spent on the work. If you only need their help for 30 hours, you only pay for 30 hours. No associated training and benefit costs here!

Which One is Right for You?

Not all positions will be right for freelancers however, many companies overlook areas where they can outsource the work to people outside the organization. Questions that can help you determine the right option include the following:

  • Can the work be completed outside the office? Most jobs can be accomplished off-site as long as your company has the technology or can afford to get it.
  • Does the person need special equipment or resources? If so, can those be provided outside the office? This may include access to certain programs or even a special phone system.
  • Will the person have access to confidential or sensitive information within the company? In certain circumstances, it may be best to hire a traditional employee. However, these days even sensitive accounting and bookkeeping tasks or Human Resources tasks can be outsourced. Confidential and competitive information and access can be protected by asking the freelancer to complete a legally-binding non-disclosure agreement.
  • Will you be able to communicate with a freelancer for instructions and updates on tasks when necessary? If it’s critical to have an answer within minutes or to work directly with them on a project, it may be best to hire someone directly. Or consider whether you have the space for the freelancer to work on-site.
  • Is the job temporary or part-time? Both temporary and part-time work can often be outsourced with minimal impact to the business.
  • Will you save money with freelancers for the job? You can often pay a lower price for skilled workers in other geographic areas who can work remotely than what you will find with direct hires for your area that would be located onsite.
  • Does the job require special knowledge or deep experience? If special technical or industry knowledge is necessary, you may find a higher quality or seasoned worker in a freelancer than what your budget can afford for a full-time hire.

Think outside the box when staffing job openings in your company. These questions should help determine if a freelancer or a direct hire is the best fit for the position. The goal is to get the job done right with the least cost, and sometimes that task may be accomplished best with a freelancer.

Sources:
https://www.linkedin.com/pulse/20140826173345-249946450-deciding-what-when-and-how-to-outsource-for-smbs/?articleId=8414355173532541173
https://www.businessknowhow.com/Startup/outsource.htm