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- Owners of businesses can just give contractors or freelancers a check.
There are no 401(k) matching, health, dental, social security, payroll, workers’ compensation, unemployment, paid vacation, sick days, or personal days when you hire a freelancer. The pay gap significantly decreases after those things are taken out of the equation. When these factors are taken into account, an employee who receives an average salary of $30,000 year costs companies $44,000, a 46.6 percent difference.
A piggy bank Using freelancers to save money - You don’t have to pay freelancers a dime if business is slow and times are tight.
Even if there isn’t any work for them or the budget is limited, you must pay full-time staff throughout the year. Freelancers do not face the same problem. To fulfill a significant deadline or handle a spike in holiday business, you could require a temporary helper. You could assign a freelancer a 5-hour project because some of them are willing to work fewer than 8 hours (typically remotely). Finding the right candidate takes a lot of time during the full-time employee hiring process. You have the option to never work with a freelancer again if they are not good. You can hire them for as long as you need them if they’re excellent. Freelancers must charge a little bit more to make ends meet because they are not guaranteed sick days, wages, or other benefits. To get through periods when they don’t have any work, they need to set aside some cash. - Freelancers are able to supply necessary tools and equipment. Their ability to provide is one of the reasons they are paid more.
Tools and camera equipment like these are the reason freelancers charge extra.
When you hire a professional photographer or filmmaker, they will frequently bring equipment valued at $5,000, $10,000, or even $20,000. It would be very expensive to hire a videographer on a full-time basis and purchase the necessary equipment. Additionally, freelancers are permitted to bring computers and software. Although the software I use and carry to work costs several thousand dollars, the company never has to worry about purchasing software and attempting to deduct the entire cost. - The freelancer does not require a permanent location.
It costs money to create a permanent place in your office. The office will have to relocate if space and workstations become limited. Companies might designate a specific space for a range of independent contractor jobs. Additionally, a freelancer can work remotely without needing any physical place. They can still communicate with everyone all the time through phone conversations, conference calls, and Slack. Reviewing work is made easy using screen sharing. According to a Harvard Business Review research, 91% of workers believe that working remotely increases their productivity. Companies who are apprehensive about using remote workers can try this arrangement for a few days to determine if the output, communication, and final product meet their expectations. - Compared to regular employees, freelancers put forth more effort.
Freelancers charge extra because they put forth more effort.
According to studies, businesses in the United States lose $15 billion annually as a result of employees’ laziness. Those who have worked there for a long period may get disinterested and bored with their jobs. Cat videos, gossip, and water cooler chatter can significantly affect productivity. Freelancers are frequently under pressure to meet strict deadlines and are closely evaluated on the caliber and quantity of their work. If freelancers aren’t motivated, focused, and able to produce high-quality work fast, they won’t be employed again.
So, should we hire all independent contractors? Is hiring regular staff even worthwhile?
Does this imply that hiring regular staff is not a good idea? Not at all. Building a skilled team of individuals that can complete your tasks and get along with one another is crucial. Additionally, there are other jobs that call for full-time employment. It will make sense to hire a full-time employee to fill a position if someone is actually needed for more than 40 hours per week. If an employee is overworked and overwhelmed, a freelancer can assist them with their workload until it starts to decrease. Do you require an employee on an as-needed basis for a brief duration? You can get aid with that from freelancers. What if you occasionally require a specialist? Employ a freelancer. What if there is a hectic period of the year when the workload is much heavier? Maintaining seamless operations and relieving staff of this strain can be achieved by hiring top-notch independent contractors. Building relationships with skilled independent contractors is crucial if you want to have a pool of qualified experts ready for emergencies.They are an invaluable resource that can contribute to the success of your entire team.
