There are many benefits to hiring freelancers and contractors for your company. It can be challenging to find the right fit for your business, but if you do, it will not only save you time but also money! Freelancers and contractors often charge more than their full-time counterparts because they are often more in demand and more experienced. This blog post covers seven ways hiring freelancers or contracting can help a business save money and increase profits.
This is often true for temps, but it also applies to specialists whose expertise might be outside of your business's focus (e.g., a coder specialising in website development). When hiring an expert or someone with specific specialised skills, they may charge more than your typical freelancer.
However, if you need a contracted out specialist who is not in-house for an extended period, then the higher cost may be worth it versus hiring someone full-time or on salary.
For instance, one of my clients wanted a social media specialist to help with their Facebook account. They didn't want to commit to hiring someone full time as they were not confident they would have an ongoing budget to commit to social media marketing. Additionally, they didn't have any time or budget for additional business development in order to ensure there was ongoing work for a full-time employee. So, they contracted a freelancer on a retainer a handful of hours per month and had an agreement in place that allowed them to dial the hours up and down / pause when needed.
The client was happy to have someone managing their social media and saving them time having to do it themselves!
Freelancers and contractors are usually cheaper than hiring a full-time employee in the long term. There is no payroll, tax, insurance or other benefits you would have to pay for someone on salary. And of course, freelancers can arrange the contracts as per your budget: monthly retainer, hourly rate etc.
Additionally, when there is an arrangement in place that allows the freelancer to dial their hours up and down or pause them when needed, you are letting someone manage your social media for less than what it would cost doing it yourself.
Not only that, but they'll also provide fresh creative insights, which is a great way to stay ahead of the game. While it may seem expensive to hire a freelancer, the reality is that you are hiring someone who can provide a high-quality service at a lower overall cost.
This is an excellent option if you're looking to grow your small business on a budget because it's cheaper than hiring someone full-time. In addition, when there is an arrangement in place that says that an organisation will only pay the freelancer for hours they work, it is a great incentive to get them working more efficiently.
This is an excellent option if you're looking to grow your small business on a budget because it's cheaper than hiring someone full-time.
There are alternatives to only paying for the hours freelancers work. If you find someone that provides a high-quality service at an affordable rate, it is worth ensuring they are paid accordingly for their hard work with the understanding that they can only get paid when they complete tasks assigned to them.
In addition, if you sign up to be on a freelancer's client list and guarantee them regular work, it is worth negotiating the payment terms. This type of arrangement means that freelancers get to be compensated fairly, and you can keep your costs low by paying only when tasks are completed.
Freelancers and contractors often provide more flexibility in terms of time commitment and experience than full-time employees, which can benefit your business if you are trying to save money or have people with unique skill sets that would not otherwise be available on the open market.
Freelancers can be flexible with their availability to fit your needs. If you need someone to work on a project for only one day, but they are available all week, then it might make sense to hire them temporarily instead of hiring an employee who is already committed elsewhere.
Freelancers are temp-based contracts. They are not a commitment of time and can be terminated whenever needed, so there is no need to worry about finding someone new if they stop working out for any reason.
Freelancers also offer more flexibility in terms of cost than hiring an employee or contractor with benefits. This comes from paying freelancers on a per-task basis rather than paying them hourly like employees are often paid.
Contractors have even less financial risk associated with them because their price includes both labour and overhead costs, which you would otherwise incur by taking on these jobs internally.
If you don't want to commit financially at all upfront, contractors might be your best option as they charge solely based on how much work needs to do. This kind of flexibility is often essential for new businesses in the first few years of trading.
Freelancers are always learning new skills to stay competitive. They are often more experienced in their field than employees because they need to update their skills to remain competitive constantly.
Additionally, freelancers work on a broad range of different projects and so often gain more hands-on experience than other full-time employees in their field.
They also enjoy a high level of autonomy, which allows them to make decisions on how to complete projects that may not be feasible for an employee.
In addition, contractors can choose when and where they want to work, so as long as there is enough demand for their skill set in the area they live in or near, contractors will usually find a job that suits their needs.
Employees typically have less flexibility with location due to company rules about the commuting time between home and work during certain hours.
Freelancing is becoming increasingly popular as people look for flexible jobs with a work-life balance. It's an attractive option for those who want to have the opportunity to choose when they work and what they do. It also provides an excellent way for budding entrepreneurs to get their business off the ground without having any upfront costs.
This can benefit business owners in several ways. First, companies that hire freelancers or contractors can usually find very skilled people for their needs and with whom they'll have an ongoing relationship (rather than hiring new staff every time the company has a requirement).
Freelancers love what they do and are motivated to do a good job. This means that companies have someone working for them who is invested in the company's success, and they're not likely to leave even if there is an economic or business downturn.
If you're a manager, chances are you know the importance of hiring the right people for your company. Hiring freelance workers offers a way to get help when you need it without hiring someone full-time.
Hiring a freelancer is not a long-term commitment. You will get help when you need it and then move on without a long-term commitment if the freelancer is not what your company needs after all.
Additionally, it is easy to find another freelancer for your company if the one you hire does not work out for various reasons. So even if a previous freelancer is unavailable for an additional project, you will be able to find someone else who's qualified and available.
In today’s world, where we have access to so many talented people around the globe through online platforms such as Upwork or Freelancer.com, there has never been more opportunity for businesses like yours looking to save money in 2021 while meeting their staffing needs with creative solutions from independent contractors who may also bring additional skills sets not found internally at your company.
Freelancers and contractors offer a lot of advantages for small, medium-sized, or even large companies. They often have more experience in their field than an employee because they typically work on many different projects. Moreover, freelancing is becoming increasingly popular as people look for flexible jobs with greater control over their schedules.
As the economy continues to recover from recessionary lows, it’s essential to explore all your options when hiring employees. Hiring freelance workers offers a way to get creative about approaching staffing needs without having any long term commitments that could be detrimental if things don't go well down the road. Did you find this helpful? Let us know your thoughts in the comments below!