Newspapers and magazines are overflowing with insights on the “gig economy”, from how employers can successfully tap into expertise without a commitment to how to distinguish part-time workers from freelancers. Both companies and job seekers now have many options in the workplace (if you are weighing the pros and cons of freelancing, please see our post on the benefits of independence). However, it is not always clear when to hire a freelancer or a full-time employee. A few quick questions can help you hone in on your hiring needs.
1. How long is the project?
The estimated timeline and anticipated deliverables for a project have an effect on who you will hire. For a short-term, well-defined project, it might make sense to pull in a freelance expert from your virtual bench. The freelancer can quickly turn the project around or supplement the resources of your current staff. However, if you do not have a well-defined timeline or the deliverables are subject to frequent change, you may need to consider bringing someone on full time. Projects with little structure are difficult to manage, even with a regular staff. In addition, long-term projects that include freelancers can bump up against legal issues. While it is easy to be dazzled by the many perks of hiring a freelancer (No benefits! No insurance!), many companies that hire freelancers may be treating them like employees (the U.S. Small Business Administration has some guidelines that show the legal difference).
2. Is this project going to be part of your company’s long-term mission?
The purpose of the project is an important consideration for the hiring process. Is your company working on this project because it could possibly become a new source of revenue? Does it reflect a core competency of your business? Projects that are being cultivated as potential new sources of income or expertise should be managed by full-time staff. While freelancers are experts that help your company achieve its goals, their ultimate objective is the growth of their own company. A full-time employee, however, is invested in your company’s growth and will provide continuing, consistent support for the endeavor. A freelancer is a great supplement to your in-house team to either provide additional expertise or move the project more quickly towards its deadline. Shorter projects that are not vital to the company’s main business can also benefit from the expertise of the freelancer.
3. What kinds of resources do you already have?
Regardless of the size of the business, resources matter. For small businesses and startups, it may make sense to work with a freelancer or a virtual bench even if the project will be long-term and a core part of the business. Limited amounts of space, hardware, time, and cash mean that a small business might need to hire freelancers until the company can get on a more stable footing. Although larger companies have more expansive budgets, the cost-effectiveness of a freelancer can help boost the bottom line while supporting in-house teams.
The Best People for the Job
Qualified candidates have a world of options in today’s “gig economy” and employers can maximize their teams with both full-time and freelance workers. Full-time employees can provide long-term support for projects and customers with their consistency, loyalty to your company, and strong contribution to your team’s development. Freelancers can help support your in-house team’s projects or manage the complete lifecycle of a short-term project with low relative costs and flexibility. Whether you are an executive searching for qualified employees or freelancers, the team at Resolute Technologies can help. Contact us today for assistance in identifying your hiring needs.