For many organizations, the advantages of hiring independent contractors are compelling. There’s a broader pool of skills to choose from, zero obligation to offer employment benefits, and you only need to pay your freelancer for the work you require – nothing more.
However, do the benefits of freelance hires stack up, and is it the right solution for your business?
Let’s explore the advantages.
Budgeting for Freelance Contractors Versus Employees
Cost isn’t always the driving force, but it’s still a vital consideration in every business decision.
Contractors tend to cost more than the typical hourly rate for an in-house employee, but that might still be the more practical option.
Whether you’re recruiting entry level employees or senior executives, there are multiple ongoing expenses:
● Regular salary payments, whether or not you had demand for those contracted hours.
● Recruitment costs when the time comes to fill each vacancy.
● Employee benefits such as health insurance, holiday allowances, and cover for absences.
● General expenses, including desk space, travel budgets, or parking permits, depending on your location.
Those expenses are justified if you have a regular, ongoing need for a full-time team member to be on-site.
Otherwise, independent contractors can be a huge relief for your cash flow.
How Hiring Contractors Could Save You Money
The key benefit of hiring freelancers is balancing supply and demand exactly as it suits you.
Taking on long-term staff can be risky for startups and growing businesses since it’s hard to cover regular costs without an established cash flow.
Independent contractors work on the basis you require, so that could be:
● Short-term contracts
● Project work
● Hourly rates
Short-term projects such as the need to hire a content writer for your website are temporary, so a contractor is an ideal solution.
The bonus is that, if trade picks up, you know which freelancers offer the best quality work. So when the time comes, you can present them first refusal if you have the opportunity to work together long term.
The Flexibility of Growing a Business With Freelance Support
Most independent contractors work remotely or from home – and they will have the resources and equipment they require to perform their job.
That means you won’t need to factor in:
● Setting aside office space
● Overtime pay for urgent tasks
● Confining work to limited office hours
Flexible working is a big deal, and newer businesses benefit substantially from having contractors who can pivot with the organization’s demands.
Training staff in specific skills can be exorbitantly expensive and take attention away from their primary duties in your business.
Any reputable contractor will be an expert in their field, usually with exceptional experience.
Businesses benefit enormously from this expertise, with access to higher-caliber candidates than they may have been able to afford on an employment basis.
Project Managing Contracted Professionals
Hiring a specialized talent results in immediate productivity.
For managers, that means freeing up training time and starting new projects faster since an experienced contractor will be ready to go from day one.
Finally, an outstanding freelancer won’t require micro-management, allowing you to focus on running your business, not overseeing the minutiae of every project!
While catch-ups and updates are vital, your contractor will come to you if they need any support or information, taking the initiative to make sure they hit the timescales you’ve set.
To summarize, an independent contractor can get specialized jobs done faster, at a lower cost, and to a higher level, given their expertise in a specific area.
If you have a short-term project or one-off requirement, a freelancer may be the most cost-effective and stress-reducing solution available!