As Lawrence Bossidy said, “Nothing we do is more important than hiring and developing people. At the end of the day, you bet on people, not on strategies.”. The emphasis on correct recruitment holds true in the light of the fact that businesses are built on the kind of synergy that its people bring to it.
Nowadays, businesses are often found in a dilemma of whether to hire a freelancer or a full-time employee. Before you make a decision, learn about the various aspects that need to be considered. Finding a suitable employee is a time consuming task, and businesses have a budget constraint too.
Having freelancers in your team can prove to be advantageous. Working with freelancers can result in saving on expenditure and lower risk. While for some businesses this strategy may excel, for other types of businesses the drawbacks of it can overpower the strengths. The businesses prefer the high degree of commitment and concentration that comes along with full-time employees.
For small businesses or startups, it is required to consider the pros and cons of hiring full timers Vs freelancers based on different factors. Read the article further to learn what is more suitable for your business.
On the basis of work
A freelancer could be a perfect choice, if the business needs an additional human resource to complete any specialized tasks, or when you may not have an internal employee possessing the skill set required to accomplish the project. This helps in cost reduction and allows flexibility. As having a full-time employee for this may not lead to maximum usage of their capabilities at all times. Instead hiring a highly qualified expert for a specified short-term task is a smarter way to work.
However, if you require permanent commitment of a person with an area of expertise, or if the business is constantly demanding a need for a specific task, go for full-time employees. Regularly outsourcing work can be a tedious task. Plus there is no guarantee that the next time you need the job to be done, that specific freelancer is available. With full-time employees the flow of communication runs smoothly too and the work is finished in a convenient fashion.
Do you have enough work?That is the question one should ask to oneself. With a full time hire, you are responsible for their career path and constant growth. There is no such onus on you in case of a freelancer.
Another factor to consider is the way of working. For companies who create different teams for each project, hiring a freelancer is the way to go. Freelancers can bring new energy, fresh ideas and quality work to the table. Along with gaining maximum cost efficiency, you can be highly selective in choosing the freelancer for quality assurance of the work.
Laying confidence on freelancers can be a good thing, as they also want repeat customers. Hence, they strive for best work to maintain long-term relations. While with full-time employees you can witness highs and lows in their performance overtime. If you are concerned about the amount of control you have on the work to be done, to an extent hiring a freelancer takes away that right.
Keep the budget allotted in mind. Freelancers are experts in their fields. While working with them in the short run can help you in financial savings, in the long-run it can cost you a lot. Comparatively, full-time employees still prove to be more expensive, as you have to bear all the employee overhead expenses like insurance, bonus, etc.
Impact on Work Culture
If you have a larger budget, go for a full-time employee. They help in creating a stable work environment. With creating lasting relationships, they bring a strong and help maintain an internal work culture inside the business.
Attrition as a factor
With freelancers, the contracts may come and go. There are lesser chances of working with the same freelancer over a long time. This might result in suffering of the work quality, not all freelancers work on similar thinking or have an aligned take on a project. The constant disruption can hamper the working environment, along with loss of motivation for the other full-time employees due to inconvenience caused and inconsistency in working.
During economic recessions or low demand periods for business, with freelancer you have the flexibility of not hiring any. This is a major advantage for start-ups and small businesses. In busier sessions you can have an extra team member and later cut-off ties as the period ends. With full-time employees, it brings the burden of additional cost during the low times.
With the changing times, and having specialized demand for work, freelancers are a perfect solution. You can expand the geographical limits and reach overseas to get freelancers. There are literally no boundaries when it comes to hiring a talent.
Otherwise, there is no right or wrong in this process. Listen to what your needs are and decide accordingly. Just make sure you classify correctly to get in the right person.
If you like this blog, read another extremely popular blog on Sales 101 for freelancers by the same author here.