Hiring Freelancers: The Benefits and Risks

November 5th, 2020

More and more, freelancers are beginning to dominate the job market.

It works for both parties: companies receive the skills they need and freelancers have autonomy over their careers whilst working within their preferred industry.

A 2018 McKinsey study noticed around 162 million people in the EU and the US take part in some form of independent work, representing 20-30% of the entire working-age population.

Since it has become such a common choice for workers, recruiters must understand the benefits and risks of prospective freelancers.

So, without further ado, here’s a list that we have assembled for you!

BENEFITS

Higher Efficiency

A contracted employee will often be interrupted throughout the day with meetings, catch-ups, and brainstorming sessions, whereas a remote freelancer, can solely concentrate on the project at hand. Fewer distractions; higher efficiency. 

Cost Reduction

Again, a contracted employee involves the need for workspaces, tax payments, and fixed pay. A freelancer, however, you pay them until the project's deadline without spending a penny on rents or resources. 

Creativity

A FREE-lancer has the opportunity to find new and inspiring ways to recharge their creative juices. Official office-working employees are limited to the time that they can spend at their desks and it is common knowledge that a structured routine offers little in the way of fresh ideas. 

RISKS

Not Meeting Deadlines

Without continuous guidance from peers, managers, and clients, room for procrastination can be lengths bigger than if you were an employee working within an office space.

Privacy

To complete a project, businesses are usually expected to hand over a brief that includes private company information. Though for many firms this carries a greater risk, it is one that can be resolved in a matter of documents and pen clicks.

By requesting your freelancer to sign a non-disclosure agreement, you are both agreeing to a mutual exchange of information between no more than those two parties in question.

This legal agreement secures the data and details of the business.

Lack of Control

Without having physical access to the project, misunderstandings may occur between both parties and, overall control will be dominated by the freelancer. These two risks combined will lead to incorrect results.

CONCLUSION

If you are hiring freelancers correctly and for the right projects, then issues will not arise. With each generation, comes the reluctance to work full-time and a hunger to be in charge of how you wish to spend your time. Therefore, more people are quitting their day jobs and turning to freelance work.

The talent is still there and the project can still be completed, though it just means that as a recruiter you will need to adapt to this evolving job market!

And on a side note if you want to check out our very own job board, feel free to here: https://jobs.hirewithleo.com/