Hiring a Freelancer vs. Hiring In House

frlncrvsinhse


As a small business owner you want to save money where you can, but you do not want to sacrifice quality work when hiring. With all the talented freelancers out there, experts in a variety of fields, you may be wondering if it is necessary to ever hire in-house. Or you might be worried that you will lose out on loyalty if you work with freelancers, rather than hiring regular employees. There are times when it makes sense to hire a freelancer and there are other times when you should hire in-house, here is a run down of the reasons for both options.


Hire a Freelancer if:

  • You are just starting out and you do not have the budget for an in-house hire. Hiring on a per project basis is a great way for you to save money while your business is growing by mitigating the cost and risks in hiring investment.
  • You have a one-off need on a short term project for a specialized skill. When you only need a job done once, for example: when you need an expert to build your website for you, hiring a freelance web designer makes sense.
  • The job is infrequent. If you only need someone once a year, say to do your taxes, why would you hire a full time employee?
  • Business is growing but you’re not sure if it will continue to do so and at what rate. If business is booming, it is tempting to hire a new employee, but you might be worried that you are just experiencing the boom part of the boom and bust cycle. Hiring freelancers during growth periods can help you meet demands without the cost of and investment in hiring a regular employee.
  • You need someone to get started on a project now and do not have time to go through a rigorous recruiting and training process. With the multitude of websites such as Sagegroupy, Upwork and Fiverr out there, it is a cinch to find the right freelancer for the job. The time from recruiting to getting a freelancer to work on a project is much shorter than the time it takes to find and train a new employee.
  • The company budget does not have room paying benefits. Full time hires not only require a regular salary, they also need things like insurance, pension and other benefits; freelancers do not.
  • The office space is too small for an in-house employee. When the work does not need to be done onsite, hiring remote workers on a per project basis erases the need for a big office to house all your employees in.
  • You need an expert but cannot afford to pay an expert’s full-time wage. Experts demand big salaries that are out of reach for most small business. Luckily, there are many experts available on a temporary basis as freelancers so you can get quality work on an important project without having to pay a huge salary.
  • You are running a small business without the time (or an HR department) to deal with sorting out payroll, taxation, benefits etc. that hiring regular workers requires. Employing freelancers is a hassle-free way to get the workers you need.
  • There is a need to reach beyond city boundaries to find the talent you need. Sometimes there are no experts available in your location, so you need to tap into the global talent pool of freelancers to have your needs met.

Hire In-house if:

  • You need a regular employee on staff and have the budget for one. Spend time recruiting and training someone to work with for the long haul if you want the commitment and stability that comes from having someone in-house.
  • You need someone wholly focused on your business. If you want to make sure your worker is always available on your schedule and/or during regular business hours, then hiring in-house makes more sense than hiring a freelancer who has other clients and their own business to focus on.
  • They will be working with customers. When you need someone who can be the regular face of your business to your customers, then you should hire a regular employee.
  • There is a need for someone who will develop an intimate knowledge of your business. If you need someone to know your business inside and out in order to be effective at doing the job, then you’d better hire in-house.
  • The work requires oversight or onsite collaboration. When work requires everyone to be in the same space at the same time, you will need in-house employees on site at regular hours.
  • You need someone working on a core aspect of your company, such as developing a product, that will take a long time. If the work is going to take a long time, then it makes more sense to pay salary than pay hourly.


Hopefully after reading these requirements you know which type of employee best fits your needs. Freelancers offer budget-friendly flexibility, regular employees offer stability and commitment. Imagine an ideal scenario as follows: a person starts off as a solopreneur and then becomes a small business owner. That small business owner then hires freelancers to help as their business grows, once the business is big enough they can hire in-house when their budget allows and there is a need for regular employees. If you are looking for someone to work on one of your projects, browse our pool of talented freelancers here on Sagegoupy today.

Authour: S.Suzuyama

Posted in Business Tips on Oct 18, 2019

Follow Sagegroupy

    Recent Posts

  • 10 Reasons Why Remote Work is Ideal for the Creative Process

    Posted in Freelancing Tips on Nov 11, 2019

    More and more people are finding that remote work suites their work style more than spending weekdays between 9am and 5pm at the office, and this may be especially true for creatives. Here are ten reasons why remote work is ideal for the creative process.

  • How to Raise Your Rates

    Posted in Freelancing Tips on Nov 04, 2019

    If you find yourself working hard and putting in long hours, yet not making the money you need, or if your schedule is so full that you’re turning away clients, it is time to raise your rates. Here’s how to do it.

  • The Best Social Media Platforms for Photographers

    Posted in Freelancing Tips on Oct 25, 2019

    There are so many social media platforms out there these days that it can be overwhelming trying to figure out which ones to use to showcase your talents. If you are a freelance photographer, this article will tell you the platforms that will help you build your brand and reach clients.

  • Hiring a Freelancer vs. Hiring In House

    Posted in Business Tips on Oct 18, 2019

    There are times when it makes sense to hire a freelancer and there are other times when you should hire in-house, here is a run down of the reasons for both options.

  • 3 Things to Think about when Setting-up your Workspace at Home

    Posted in Freelancing Tips on Oct 11, 2019

    Depending on how much work you intend to do remotely and the basic requirements needed to do your job, you might be able to get by with nothing more than a laptop and a good internet connection. However, some jobs require more equipment and more space in order to ensure success when working from home full-time. Here are are three things to consider when getting ready to set-up your new workspace.

  • Can you be a Freelancer without a Niche?

    Posted in Freelancing For Beginners, Freelancing Tips on Oct 04, 2019

    Is it possible to be a successful solopreneur and remain a generalist? If you want to dabble in a few areas and not be tied down to a niche, this article is for you.

  • The Best Freelance Platforms for Writers

    Posted in Resources, Freelancing Tips on Sep 27, 2019

    There are a lot of freelance platforms out there and when you are a busy freelancer you need to know which ones are worth investing your time in to make a profile that shines. In our continued effort to connect freelancers with clients, we hope that this list helps writers to find clients soon, so they can spend less time marketing and more time writing.

  • 6 Times You Should Fire a Freelancer

    Posted in Business Tips on Sep 20, 2019

    The vast majority of times freelancers deliver great products on time and everyone walks away from the experience happy. However, occasionally things do not go as planned and clients are left wondering: is it time I fired this freelancer? Read this to find out 6 times you shouldn't hesitate to fire a freelancer.

  • Collaboration Tools for Remote Teamwork

    Posted in Resources on Sep 13, 2019

    Whether team members are sharing a quiet office space, working from home in a nearby neighbourhood, or from an office on the other side of the globe, thanks to technology collaboration has never been easier. Here a few collaboration tools to help make remote teamwork easier.

  • All About Forming an Agency

    Posted in Freelancing Tips, Business Tips on Sep 06, 2019

    Are you ready to move away from working alone as a freelancer and toward being part of a team? Once you have been a solopreneur for a few years and your business is thriving, you may wonder whether or not it might be time to scale up and form your own agency. Here are a few things to consider before taking the plunge.


Tags


Comments

Please sign in to comment!