Freelancers can provide excellent value to big organizations. They understand the project's requirements and expectations and can deliver on time and within budget. Companies can benefit from hiring freelancers because they have experience working on many projects. This means a freelancer could be more resourceful about what needs to be done for a particular task than a full-time employee. Freelancers bring creativity and innovation into the workplace because typical office politics do not constrain them.
Freelancers over Full-Time Employees?
The trend right now is picking freelancers and contractors over full-time employees, and there are several reasons for this. Even big organizations like Google has leaned towards having more contractors than permanent employees, and their CEO Sundar Pichai was recently quoted saying that there are more employees than work at Google right now.
First and foremost, freelancers are typically cheaper than full-time employees. If you need to hire more than one freelancer on a project (which is common), they can work on other tasks while they wait for the first project to finish. Typically, employers pay their employees more than they would pay a freelancer because they think of their employees as "lifetime" employees who will stay with the company forever. However, hiring freelance workers may be a good option if the company wants to reduce costs and increase efficiency. Besides having a much lower cost-to-company, freelancers can simultaneously be used for multiple workloads. Freelancers can work on projects that will make money immediately.
Next, freelancers have flexibility over when or how often they work, whereas full-time employees usually work set hours every day of the week. Freelancers can choose when and how much they want to work based on their schedule and the availability of other clients. Also, companies have additional benefits over hiring full-time employees because it gives employers more control over scheduling and managing their businesses. Companies can also get a more diverse set of skills from freelancers than they can from full-time employees.
Next, Companies can hire as many or as few freelancers as they need, depending on the work they need to do. This is not possible with full-time employees. Full-time employees are committed to their organization for a set period and may lose their jobs if the company decides to change direction or close its doors altogether. Freelancers are more likely to be motivated by their pay than full-time employees. A good freelancer will work hard if they have not been paid in a while, while an excellent full-time employee may not feel motivated to do extra work when no one is watching.
Finally, with freelancers, companies can work remotely as freelancers are spread worldwide and can work for organizations without being physically present. This results in full-scale operation without office space, allowing businesses to save on infrastructure costs. A permanent work-from-home model for freelancers keeps them motivated to work and helps companies save millions on transport allowances.
Problems with Full-Time Employees
Full-time employees are often made redundant for a variety of reasons. They may be fired if the company finds another employee who is better suited for the position; they may resign; they may be made redundant because there is a better candidate available in a different department; they may retire; they may transfer to another department of the same company, or they may simply decide to leave voluntarily.
These employees have limited control over their career paths within an organization. The only way out of that situation is through resignation, as not everyone would be eligible for promotion but would aspire to be promoted. This would result in discontent and ultimately resignation leading to increased attrition rates.
These employees have an exposure factor attached to their work and might lose motivation quickly if they don’t get recognition soon. They would always want to stand out and make sure their work is noticed and might feel dejected to work if no one is watching. There is a need for constant supervision of full-time employees.
Full-time employees expect yearly increments, and if that does not match their expectations, their morale goes down, affecting the quality of their work. The predicament with full-time employees is that they need to be kept satisfied continuously on multiple fronts. This is a headache for organizations as every employee has different expectations that are beyond the scope of organizations to be fulfilled.
Freelancers are boon for businesses and start-ups due to their no-nonsense approach to working. They focus on working for clients and are self-motivated to earn for their labor. Employees have started to see through the farces of ‘working a team’ and have understood that the nature of businesses is to make a profit; hence, working for oneself is the best approach one should take.