With over 1.1 billion freelancers around the world, it is no surprise that freelancers represent 35 percent of the workforce. It is also not surprising that 33 percent of Fortune 500 companies use freelancing websites for outsourcing as companies discover the benefits of coworking, remote working, and modern-day approaches to their labor needs. In the last 5 years, over 50 percent of businesses reported a significant boost in their freelance workforce. While there is the age-old debate over keeping things in-house versus the perks of outsourcing to independent contractors, there is no denying that freelancers are quickly carving out their place in the business world- and their value to a business’s success.
Access Quality Talent At An Effective Price
Many of the best talents are now freelancing. This means your business can access their skills without the high price tag that comes with employing them full-time. Employing an independent contractor means most businesses do not need to pay a full-time permanent wage, employee income taxes, or employee healthcare benefits. For income and payroll taxes, most freelancers are self-employed and therefore responsible for filing their own taxes.
There are also many types of freelancers on the market now, including independent contractors and diversified workers (a mix of employed and freelancing). This means your business can choose a freelancer to suit its needs, timing, and budget. Even though highly rated freelancers can charge a high hourly rate, they don’t require training, medical or dental benefits and only need to be paid for the hours/projects they work on.
Expert And Global Knowledge In Industries Beyond Your Reach
Another incredible benefit that freelancers can add to your business is a global reach in the labor market. Thanks to the increasing number of freelancing platforms, businesses can now easily hire high-quality and certified freelancing talent from around the world. Many of them can also help you do your due diligence before recruiting other subcontractors by asking them questions about their qualifications and experience, pre-vetting, and ranking them. The rise of remote working and co-working spaces around the globe has also accelerated the success of this. For a business that is looking to expand into a new geographical location or market, that can serve as a distinct advantage – particularly if you choose an independent contractor that is familiar with the target location or market.
A Reliable Resource In Your Business’ Future Network
Finally, building a reliable and robust freelancing network as your business grows can be just as valuable as curating a great network of suppliers. As your business grows and encounters more challenges, you may find you need their expertise again. For instance, during an expansion to another market after an initial successful growth phase. Therefore, already having a list of freelancers on standby means your business can easily turn to them when needed.
Another point to note: employing freelancers can reduce your risk as an employer. In some states where employment at will is not in effect, employers face the risk of legal action for termination. However, since freelancers are classified as independent contractors and not employees, the laws surrounding this do not apply.
These are just a handful of benefits of adding freelancers to your business. However, keep in mind that these benefits will depend on your business approaching it with plenty of preparation. Before hiring freelancers, be clear on what your business can afford, the kind of role you need, and the mix between in-house and freelance talent your business wants. Do this and you can enjoy the perks of both freelancers and employees in your business journey.