According to the Freelancing in America 2018 study, by Edelman Intelligence, 56.7 million Americans freelance annually. A freelancer is a self-employed person who offers services to clients. You might hear freelancers referred to as independent contractors or gig workers. Let’s explore how hiring freelancers rather than full-time employees can benefit your business.
Typically you will have to pay a freelancer a higher hourly rate than a full-time worker; however, in the long run, the company will save money, generally 20 to 30 percent. Your business will not be responsible for typical employee benefits (sick leave, vacation pay, family leave, retirement plans, etc.), health insurance costs, workers' compensation and disability benefits, and the employer portion of Medicare and Social Security taxes.
If you're looking for other financial-related benefits for your business, and you've yet to choose a type of business entity, you may consider forming an LLC. With this entity, you'll avoid extra taxes that come with a corporation, and you'll be protected from any business lawsuits that may occur. When pairing an LLC with freelancers, the financial savings can increase significantly.
Expanded Talent Pool
Business needs and technology change all the time. It's not easy to keep your full-time staff trained on every skill you need for every project you encounter. It's easier than ever to find qualified, experienced gig-based employees — even remote workers — for all the tasks you need. The right online job board can connect you with reliable and capable candidates. Whether it's administrative support, sales, and marketing, design work, or even web development, you can easily hire freelancers and remote staff to fit any role you need to fill.
Try Before You Buy
You don't have to make a long-term commitment to a freelancer. Therefore, it's a low risk for the company. You can try out a particular freelancer on a project, and if their skillset doesn't match your needs, then you can end the relationship. If it works out that they are an ideal fit for the company, you can have an option to offer them direct employment.
Many freelancers cite the flexibility of working their own hours as one of their favorite perks. However, that same flexibility can benefit your business. Freelancers can post to social media, update your website, and do almost any other task you need doing after business hours.
Although some laws vary by state, an employer’s risk is typically reduced by using freelancers instead of regular full-time employees. Freelancers cannot collect unemployment insurance or workers' compensation benefits. They generally can't sue the company for discrimination or harassment and can be terminated easily.
Reach and Connections
You might be considering expanding your business into a particular market or geographical area. Using a freelancer can open the door to growth in different areas across the country or around the world. You can also take advantage of outsourcing from cheaper labor markets while still finding specific expertise. Additionally, freelancers often have connections to media outlets or work with social media influencers, which could also extend the reach of your company into areas otherwise not possible.
Hiring and on-boarding full-time employees can take considerable time and money with applications, interviews, salary negotiations, and so on. Fortunately, if you need a freelancer, you can hire one today without spending time on such things. Job boards and freelance websites can allow you to look at the credentials and skills of a variety of available freelancers, and you can find the right one for you in very little time at all.
Hiring freelancers can save you money, as well as offer the opportunity to find workers with the specific, changing skills that you need. No matter if you are looking for a social media expert, a graphic designer, administrative support, or just about any other type of skill, you can quickly find a wide selection of freelancers that can get the job done right.
- Article submitted by: Tina Martin