Full-time Employees v/s Freelancers (Pros and Cons)

Full-time Employees v/s Freelancers (Pros and Cons)

Over the last decade the GIG economy has transformed the way we worked and do business in the world. More and More people are moving towards off-site and remote working culture. A recent study shows that 53 million Americans – a whopping 34 percent of the workforce – are now freelancing, be it as their main or supplemental income. This population contributes $715 billion each year to the economy through their freelance work.

 

In today’s fast-growing economy, many job opportunities are created. But the question is whether to hire regular employees or FREELANCERS?

Although both are necessary for any business but more importantly, it depends on the type of industry in which you are working and the nature of work you want to outsource. 

Let’s explore the Pros and Cons:

 

Pros

Cost Benefits:

Even at a higher hourly rate, expect to save 20 to 30 percent annually with a freelancer when you factor in not having to pay for benefits, like health insurance and retirement, as well as Medicare and Social Security. If your worker is remote, you also reduce the need for office space and lower your office supply costs.

 

Domain Expertise:

A freelancer brings a variety of skills and talents on your table compared to an employee who specializes only in one particular area. Different people bring different ideas, learnings and better solutions from their varying domains of experience and expertise. 

 

Flexibility:

They are flexible to work with and require no office space, i.e. they can work from anywhere at any time. They are flexible with working hours and can be employed for a short term or long term project with an aim to solve complex problems in more timely and efficient manner. It’s easy to scale them according to our needs, nature and amount of work. 

 

Global Reach:

Companies look to freelancers to find talent outside their geographical limits. Expansion or an understanding of new markets can be made with a finite budget outlay. Using a freelancer may open the door to growth while minimizing risk if things don’t work out

 

Cons

Less Control over freelancers

Since Freelancers are not directly part of your organisation and they might choose to perform the work outside of normal business hours, you have lesser control over them as compared to full-time employees.

 

Multi-Tasking

An independent contractors’ job is to develop their business. You need to make sure they’re available on your schedule, not theirs. They may be great when they’re accessible, but be prepared with a Plan B if they’re not. Many companies recruit a team of freelancers, so they always have backup.

 

Data Security

Hiring a freelancers may require sharing of very sensitive data of the company, due to which there might be a possibility severe damage to the company. Many companies tend to sign NDA to avoid this problem and outsource work to agencies which has robust security system in place.

 

Therefore, first take the time to understand your business needs, weigh the Pros and Cons and then decide whom to hire.