With increasing human resource expenses, companies are always looking for ways to cut their overhead costs. It may help to work with freelancers or contract workers to diversify your workforce and reduce costs. Whatever the case, contract workers and freelancers can help a business operate more efficiently . Aside from cutting your overhead costs, it’s easier to connect with different experts for any project. However, there are several things to consider when deciding to work with a freelancer or contract worker. Freelancer vs. Contractor While freelancers and contractors might seem similar, they’re actually different. The key difference is the contract. Freelancers typically sign non-disclosure agreements (NDAs) while contractors sign contracts. In the case of a freelancer, they can work for any client, taking as many projects as their time allows. They can set their own rates or accept a mutually agreed upon rate and work from anywhere they want. Freelancers are not bound to any single client. On the other hand, contractors are more like “temporary employees.” They are typically bound to a client as stipulated in the signed agreement, meaning they work for one particular client at a time. The contract ends when either of the parties wants to opt-out. Contractors can work onsite in the client’s office or from their own workspace. Both freelancers and contractors are not traditional employees, meaning they can’t receive the typical employee benefits. This can save you money in the long-run. They are self-employed and are responsible for their own benefits. However, it’s vital to understand the laws of different states, such as California , with new employment laws. Hiring a Freelancer or Contractor Working with freelancers or contract workers comes with both negatives and positives. It’s vital to weigh them before making a choice. Pros Save Money– Hiring contractors and freelancers is often more cost-efficient compared to hiring full-time employees. You are likely to avoid costs, such as office equipment, medical cover, training, and taxes. Hire a Geographically Diverse Team– Since most freelancers and contractors can work remotely, it’s possible to set up a more diverse team. This gives you team members with different backgrounds, experiences, and skill profiles. They Are Often Specialists in Their Field– Most freelancers and contractors are usually specialists in their fields with vast experience from working with different clients. It is easy to find a professional for just about any project. Cons Training– You might need to train your team to ensure they understand the specifics of your project. The geographical gap can make training a challenge, but you can use online platforms to provide training. Higher Turnover– Since freelancers are not bound to you, they can quit at any time without notice. You’ll need to hire new members often, which can affect your team’s productivity, leading to delays. Less Attachment to Your Company– Freelancers and contractors pick projects based on rates and career growth. This means they have less attachment to your company, and they can easily quit when a more suitable project comes along. […]
