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Boost Your Business: Why Hiring Freelancers Can Be a Game-Changer
In recent years, the use of freelancers has become increasingly popular among businesses of all sizes. Freelancers, also known as independent contractors or gig workers, are self-employed individuals who work on a project basis for different clients. This trend is not surprising, given the many advantages of hiring freelancers over traditional employees. From cost savings to flexibility and expertise, there are several reasons why freelancers can be a game-changer for your business. In this article, we will explore 20 benefits of hiring freelancers over employees, with examples for each point, and provide a compelling summary of why you should consider hiring freelancers or working with a freelance agency.
Here are 20 ways to convince yourself to hire a freelancer instead keeping your traditional salary recruitments.
Easy Answers:
- Cost Savings
- Flexibility in Hiring
- Reduced Overhead
- Greater Focus on Core Business Activities
- Access to a Global Talent Pool
- Faster Turnaround Time
- Increased Productivity
- Diverse Skill Set
- Increased Innovation
- Reduced Recruitment Time
- No Need for Training
- Reduced Risk
- No Need for Performance Evaluations
- Greater Control Over Project Scope and Budget
- More Efficient Resource Allocation
- No Obligation for Future Work
- Reduced Administrative Burden
- No Training Requirements
- Better Cost Management
- Freedom to Choose the Best Talent
1- Flexibility in Hiring:
Hiring a freelancer provides greater flexibility than hiring a traditional employee. You can hire a freelancer for a specific project or task, without the need for a long-term commitment. For example, a small design business can hire a freelancer to design a new logo or create a website, without having to pay a regular salary or commit long-term with an employee.
According to a survey conducted by Upwork, a freelancer platform, 59% of the surveyed businesses reported that they use freelancers to fulfill short-term labor needs. Additionally, 51% indicated that they had hired freelancers for short-term projects.
(Source: Upwork, "Future Workforce Report", 2020)
2- Cost Savings:
Hiring a freelancer can be less expensive than hiring a full-time employee. Employers do not have to pay regular salaries, paid time off, health insurance, or retirement plans for freelancers.
Example: A marketing agency wants to launch a new advertising campaign for one of its clients. Instead of hiring a full-time graphic designer, they hire a freelancer for the duration of the project. The agency saves money on employee benefits and other labor costs, and the freelancer is paid a flat fee for the project, resulting in a win-win situation for both parties.
According to a survey conducted by Deloitte, 49% of the surveyed businesses reported that their use of freelancers was motivated by the reduction of labor costs.
(Source: Deloitte, "Global Human Capital Trends", 2021)
3- Reduced Overhead:
Hiring freelancers can help businesses reduce overhead costs associated with hiring full-time employees, such as office space, equipment, and supplies.
By hiring freelancers, businesses can reduce overhead costs associated with maintaining a physical office space, equipment, and other resources. Freelancers work remotely and typically have their own equipment, reducing the need for the employer to provide such resources.
According to a survey conducted by FlexJobs, a job listing website for remote and flexible work, businesses can save up to 30% of their operating costs by hiring remote workers.
Example: A digital marketing agency hires a freelance graphic designer to create a new logo for a client. Instead of renting additional office space and buying new equipment for the designer, the agency can provide the necessary files to the freelancer who works remotely. This saves the agency money on additional office space and equipment expenses.
(Source: FlexJobs, "The Benefits of Remote Work for Businesses", 2021)
4- Greater Focus on Core Business Activities:
By outsourcing tasks to freelancers, businesses can focus on their core competencies and allocate resources more efficiently. This allows them to prioritize their time and resources toward the tasks that generate revenue and contribute to their overall business objectives.
According to a survey conducted by Upwork, 64% of businesses reported that using freelancers allows them to focus on their core business activities.
Example: An e-commerce company hires a freelance content writer to create product descriptions and blog posts. By outsourcing this task, the company's in-house team can focus on other core business activities such as product development, customer service, and marketing.
(Source: Upwork, "Future Workforce Report", 2020)
5- Access to a Global Talent Pool:
The internet has made it easier to access a global talent pool, which means businesses can find the best freelancers for their projects regardless of their physical location. By hiring freelancers on UpMyChain, businesses can access a global talent pool. This allows them to tap into a diverse range of skills and experiences that may not be available in their local market. Additionally, hiring freelancers from other countries can provide businesses with valuable insights and perspectives on different cultures and markets.
According to a survey conducted by Forbes, 59% of businesses reported that they hire freelancers to access a global talent pool.
Example: A consulting firm that specializes in international business development hires a freelance translator who is fluent in Mandarin Chinese to help with a project for a client based in China. By hiring a freelancer with expertise in the local language and culture, the consulting firm is able to provide more comprehensive services to its client.
(Source: Forbes, "The Rise of the Freelance Economy", 2018)
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6- Faster Turnaround Time:
Freelancers often have a more flexible schedule and can work outside of traditional business hours. This can lead to faster turnaround times for projects and tasks compared to in-house employees who may have a set schedule and workload.
According to a survey conducted by Work Market, 78% of businesses reported that using freelancers resulted in faster turnaround times.
Example: A graphic design company hires a freelance video editor to create a promotional video for a client. The freelancer is able to work on the project during evenings and weekends, which allows for a faster turnaround time than if the in-house team had to complete the project within their regular business hours.
(Source: Work Market, "The State of the Freelance Economy", 2018)
7- Increased Productivity:
Freelancers are often highly motivated and focused on delivering high-quality work. This can lead to increased productivity and efficiency, as they have a strong incentive to complete projects on time and to the best of their abilities.
According to a survey conducted by Upwork, 72% of businesses reported that hiring freelancers increased their productivity.
Example: A marketing agency hires a freelance copywriter to help with a client's campaign. The freelancer is highly skilled and experienced in writing effective marketing copy, which allows them to complete the project quickly and with a high level of quality. This increased productivity benefits both the agency and the client, as they are able to deliver the campaign on time and with great results.
(Source: Upwork, "Freelancing in America: 2019")
8- Diverse Skill Set:
Freelancers often have diverse backgrounds and experiences, which allows them to bring a unique perspective and skill set to a project or task. This can be particularly beneficial for businesses that require specialized skills or expertise that may not be available in-house.
According to a survey conducted by HBR Consulting, 63% of businesses reported that they hired freelancers for specialized skills and expertise.
Example: A software development company hires a freelance data scientist to help with a project that requires advanced analytics and machine learning expertise. The freelancer has a specialized background in data science and is able to bring a unique perspective and skill set to the project that the in-house team doesn't possess. This diverse skill set helps the company complete the project more efficiently and with better results.
(Source: HBR Consulting, "The Rise of the Agile Workforce", 2019)
9- Increased Innovation:
Freelancers can bring fresh perspectives and new ideas to a project or task. This can lead to increased innovation and creativity within a business. As freelancers work with a variety of clients and industries, they often have exposure to different approaches and techniques, which can be valuable for businesses looking to innovate and stay ahead of the competition.
According to a study by the Freelancers Union, 77% of freelancers reported that their work allows them to be more innovative and creative.
Example: An advertising agency hires a freelance graphic designer to work on a new campaign for a client. The designer brings a fresh perspective and new ideas to the project, which allows the agency to create a more innovative and eye-catching campaign. This increased innovation benefits both the agency and the client, as they are able to deliver a more effective and successful campaign.
(Source: Freelancers Union, "Freelancing in America: 2018")
10- Reduced Recruitment Time:
Hiring a full-time employee can be a lengthy process that involves advertising the position, reviewing resumes, conducting interviews, and making a hiring decision. In contrast, hiring a freelancer can be a much quicker process, as businesses can quickly search for and select a freelancer with the specific skills they need.
According to a study by Upwork, 59% of businesses reported that using freelancers has reduced their time to hire.
Example: A marketing agency needs a copywriter for a new project that has a tight deadline. Instead of going through the lengthy process of hiring a full-time copywriter, the agency can quickly search for and hire a freelance copywriter with the necessary skills and experience to complete the project on time. This saves the agency time and resources, allowing them to focus on delivering high-quality work to their client.
(Source: Upwork, "Future Workforce Report", 2019)
11- No Need for Training:
When hiring a full-time employee, businesses may need to invest time and resources in training the new employee to ensure they have the necessary skills and knowledge to perform their job effectively. With freelancers, businesses can hire individuals who already possess the required skills and experience, eliminating the need for training.
According to a survey by LinkedIn, 76% of companies reported that their biggest challenge when hiring is finding candidates with the necessary skills.
Example: A software development company needs a freelance software developer to work on a new project. Since the company already has an established software development process and tools, it can easily hire a freelance software developer who has experience with the same tools and technologies. The freelancer can start working on the project immediately, without the need for additional training, saving the company time and resources.
(Source: LinkedIn, "Global Talent Trends 2020")
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12- Reduced Risk:
Hiring full-time employees come with certain risks, such as the risk of a turnover or poor performance. With freelancers, businesses can reduce their risk since they typically have shorter-term contracts and can easily be replaced if their work is unsatisfactory.
According to a survey by the Society for Human Resource Management, the average cost-per-hire for companies is $4,129, with an average time-to-fill of 42 days.
Example: A marketing agency needs a graphic designer to work on a new client project. The agency hires a freelance graphic designer on a project-by-project basis, reducing their risk of a turnover or poor performance. If the freelancer doesn't meet expectations, the agency can easily find a replacement for future projects without incurring additional costs.
(Source: Society for Human Resource Management, "Human Capital Benchmarking Report", 2019)
13- No Need for Performance Evaluations:
Unlike traditional employees, freelancers are not typically subject to performance evaluations, which can save businesses time and resources. When working with freelancers, businesses don't have to worry about conducting performance evaluations or providing ongoing feedback. Since freelancers typically work on a project-by-project basis, their performance can be evaluated based on the completion and quality of their work.
According to a study by Gallup, only 14% of employees strongly agree that their performance reviews inspire them to improve.
Example: A software development company hires a freelance programmer to work on a specific project. The programmer completes the project on time and delivers high-quality work, which satisfies the company's needs. The company doesn't need to worry about conducting a formal performance evaluation or providing ongoing feedback, as the quality of the programmer's work speaks for itself.
(Source: Gallup, "The Real Deal on Employee Engagement", 2017)
14- Greater Control Over Project Scope and Budget:
Hiring freelancers in UpMyChain allows businesses to have greater control over project scope and budget, as they can hire freelancers for specific tasks and set clear project goals and timelines. Since freelancers typically work on a project-by-project basis, businesses can negotiate the scope of work and set a specific budget for the project.
According to a survey by Upwork, 60% of businesses reported that cost savings are a major benefit of hiring freelancers.
Example: A marketing agency hires a freelance graphic designer to create a set of promotional materials for a client. The agency negotiates a specific scope of work and budget with the designer and can easily stay within that budget since they have direct control over the project scope.
(Source: Upwork, "Future Workforce Report", 2019)
15- More Efficient Resource Allocation:
Hiring freelancers allows businesses to allocate their resources more efficiently. Instead of hiring a full-time employee for a specific task, businesses can hire a freelancer with the necessary skills to complete the task on a project-by-project basis. This not only saves money but also allows businesses to allocate their resources to other areas of the business.
According to a survey by Forbes, 84% of businesses reported that hiring freelancers helps them meet project deadlines and manage their resources more efficiently.
Example: A software development company hires a freelance web developer to create a new website for a client. By hiring a freelancer, the company is able to allocate its resources more efficiently and focus on other important tasks, such as software development and customer support.
(Source: Forbes, "The Rise of the Freelance Economy", 2018)
16- No Obligation for Future Work:
When businesses hire freelancers, they are not committed to providing future work beyond the specific project they were hired for. This is in contrast to hiring full-time employees, where businesses have a long-term obligation to provide ongoing work and pay for benefits.
According to a study by Upwork, 54% of hiring managers said that the ability to hire freelancers on an as-needed basis was a major advantage of using freelance talent.
Example: A marketing agency hires a freelance graphic designer to create a logo for a client. Once the project is completed, the agency does not have to provide any future work to the freelancer if they do not need their services again.
(Source: Upwork, "Future Workforce Report", 2020)
17- Reduced Administrative Burden:
One of the significant advantages of hiring freelancers is that it reduces the administrative burden on the company. When companies hire employees, they have to spend a considerable amount of time and money on administrative tasks, such as setting up payroll, benefits, taxes, and other HR-related activities. However, when you hire a freelancer, you don't have to worry about any of these tasks. Freelancers are responsible for their own taxes, benefits, and other expenses, which means you can focus on your core business activities instead of spending time on administrative tasks.
According to a study by Oxford Economics, companies can save up to 30% of the cost of employing a full-time employee by hiring freelancers instead. This reduction in administrative burden can be a significant factor in this cost savings. By reducing administrative tasks, companies can allocate resources more efficiently, increase productivity, and improve their bottom line.
For example, a small marketing agency was struggling to keep up with the demands of its clients due to a lack of resources. They decided to hire a freelancer to help them with their workload, which not only reduced their administrative burden but also allowed them to focus on acquiring new clients and growing their business. The freelancer was responsible for their own taxes and expenses, which saved the agency a considerable amount of time and money.
18- No Training Requirements:
One of the biggest advantages of hiring a freelancer is that they come with a pre-existing skill set, often gained through years of experience. This means that they require little or no training, unlike new hires who typically require extensive onboarding and training. As a result, you can expect to save a significant amount of time and resources that would otherwise be spent on training new employees. This is particularly beneficial for small businesses with limited resources.
For example, if you need a graphic designer to create marketing materials for your company, you can hire a freelance graphic designer who has a portfolio of work that demonstrates their skills. This way, you don't have to spend time training them on the basics of graphic design, such as color theory, composition, and typography. Instead, you can focus on providing them with specific project requirements and collaborating with them to create a final product that meets your needs.
According to a survey conducted by Upwork, 72% of businesses that hire freelancers agree that they require less training than traditional employees. This not only saves time and money but also allows businesses to allocate resources more efficiently.
19- Better Cost Management:
Hiring a freelancer can be a more cost-effective solution than hiring a full-time employee. Freelancers generally charge by the project or by the hour, and they typically do not require benefits or overhead costs such as office space, equipment, and training. This allows businesses to better manage their costs and allocate resources more efficiently.
For example, let's say a business needs a website redesign project completed. Hiring a full-time employee for this project would likely involve a significant upfront cost for recruiting, training, and providing the necessary equipment and software. In contrast, hiring a freelancer for the project would only require payment for the work completed, without any additional overhead costs.
According to a survey by Upwork, 60% of businesses hire freelancers to save money on operational costs. Additionally, a study by Oxford Economics found that using freelancers can save companies up to 30% on labor costs.
20- Freedom to Choose the Best Talent:
Hiring freelancers in UpMyChain gives businesses access to a global pool of talent without being limited by geography. This means companies can choose from the best freelancers available regardless of their location. The freelance market is highly competitive, which leads to freelancers continuously improving their skills and offering competitive rates. Companies can hire the best talent for their specific needs, which can result in higher quality work and faster turnaround times.
For example, a company based in the United States could hire a freelancer based in India to complete a software development project. The Indian freelancer may have a unique skill set that is not readily available in the United States and could offer a more competitive rate due to a lower cost of living. This can result in a cost-effective and high-quality solution for the company.
According to a survey conducted by Upwork, 75% of businesses said that using freelancers gave them access to a larger pool of talent than traditional hiring methods. Additionally, 58% of businesses said that using freelancers allowed them to tap into hard-to-find skill sets.
In conclusion, hiring freelancers offers many advantages over hiring traditional employees. From cost savings to increased productivity and access to a global talent pool, freelancers can help businesses achieve their goals more efficiently and effectively. By outsourcing projects to skilled and experienced freelancers, businesses can focus on their core competencies and reduce administrative burdens. With the rise of freelance platforms like Upwork, Fiverr, and UpMyChain it has become easier than ever to find and hire talented freelancers. So, if you're looking to take your business to the next level, consider working with freelancers to help you get there.
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