How we hire staff is evolving, and now it’s not only the startups and seasonal businesses who are preferring to staff up with freelancers or contractors who are self-employed.
Staffing up or down with a flexible workforce according to workload provides businesses greater flexibility without long term commitment.
There are a lot of benefits for using freelances and arguably none more so than knowing as a growing business you’re only paying for the actual hours worked.
The hourly rate for freelancers is usually double if not more than that of employees, but there are fewer overheads, including no paid sick days or holiday leave.
Freelancers are also responsible for their training, and education as well as regular outgoings including tax, healthcare and insurances. Hence, it’s easy to appreciate how this saves a startup business a lot of upfront investment, particularly in the initial months of operation when working capital and cash flow are tight.
Working for yourself requires discipline, motivation and professionalism that’s comparably often lack in employees.
A job done well is the ultimate outcome for a freelancer or contractor as their next job actually depends on it.
With flexible workers the saying: “you’re only as good as your game or success” is firmly planted in their hippocampus. It’s a reminder that they are judged on their most recent event or success not all of their successes so they’d better do a good job every time!
To compete for a contract, a freelancer must prove they were successful in the last job.
Contractors are more accountable and their work ethic, acumen and achievement more transparent so they’re a safer bet for Businesses who need the work done to a high level in a short timeframe.
Using freelancers is a desirable option for startups and seasonal businesses in industries like tourism and hospitality.
However, more companies in other industry sectors are coming around to using contractors on a more regular basis. So there’s been a rise in popularity of local and global online freelancer hiring sites including FreelanceMyWay. This site offers a platform for buyers and sellers to full recruitment needs.
Businesses can hire quickly and efficiently, and the freelancers love these sites as they provide access to jobs and also provide support and helpful tools and a knowledge repository.
The support offered to both the freelancer and business on these hiring sites is like an `hr office’.
Upwork is another popular site, and it’s realised it’s placed in offering tips including a nifty guide on how to win well-paying projects.
So in summary, here are some of the most popular reasons businesses are using a more flexible workforce and self employed freelancers:
- Peak work periods
- Sick leave and staff loss
- Downsizing and upsizing
- Education and training
- Knowledge transfer
Better at the Job?
So who does the job better? Is there a way to accurately say the employee is better than the self employed? No. There’s no one answer that covers all employment environments. The role and requirement of the business determines which type of worker is a better fit.
Employees are still the preference for most businesses, particularly those that have hundreds if not thousands on their payroll. Employees provide longevity, stability, and dependability and business would not be as we know it with this workforce.
Times are changing and technology disruption including Blockchain, Artificial Intelligence and robots will most likely take over the more mundane tasks currently done by employees. So get ready for using a flexible workforce.
Self-employed workers, will find their rightful place in most companies and be utilised more as businesses need to keep innovating and optimising their workforce requirements.