What is Freelance Work: Benefits and Tips for Businesses

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Many employers are choosing to hire freelancers to complete various tasks at their organisation, rather than temporary, contract, casual or permanent employees. Freelance work is not a new concept but is embraced by many employers in a rapidly changing business environment because of the workforce flexibility it provides. What freelance work is to one employer may be different to another, and may even change at your organisation from project or project. There are some common tips, however, to ensure any freelance work relationship is successful.

  • Freelancers differ from other types of workers, as they are hired to complete one-off or ad hoc tasks.
  • Hiring a freelancer can provide employers with workforce flexibility to meet demand or specialised needs, but there is no guarantee a freelancer will be available when you need them.
  • Making an effort to communicate, provide clear instructions and pay on time will improve the chances of long-lasting work relationships with freelancers.

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What is freelance work?

Freelance work is work done by a self-employed person, known as a freelancer, who is hired by organisations on a short-term or project basis. Unlike contract employees, freelancers typically handle smaller, irregular workloads within shorter timelines. They often work with multiple clients, allowing them to gain broader experience across various industries.

Freelancers can be employed in any industry or occupation, but it is more common in professional services than in trades. Sometimes freelance work can be referred to as the gig economy, but freelancers do not have to complete digital tasks or work remotely.

The work itself can vary. A freelancer may be engaged to facilitate a project or complete a task for a wider project. For example, a specialist marketing freelancer may be engaged to develop and implement a marketing strategy for a business. A freelance graphic designer may be hired to design a new logo for a new marketing plan. It is up to you what kind of work the freelancer will undertake.

Unlike other working arrangements, such as contract or casual, freelancers do not have to be paid entitlements such as superannuation or a loading on their fee. Employers also do not need to provide freelancers with notice if they do not wish to re-hire them for future assignments. Freelancers are most often hired on an hourly rate or paid an overarching cost for the assignment.

The pros and cons of hiring a freelancer

The benefits of hiring a freelancer include:

  • Having the flexibility to engage a worker when business needs are high and not be locked into an employment arrangement when demand is low
  • Engaging a professional with specialised skills required for a niche or irregular task
  • Employing a worker without dealing with the administrative tasks of providing leave entitlements, superannuation and other typical workplace requirements under National Employment Standards.

However, there are challenges to consider when hiring a freelancer, such as:

  • The hourly rate or total cost may be higher than the industry average, as the freelancer’s charge compensates for not receiving leave entitlements and superannuation
  • Your preferred freelancer may not be immediately available to undertake your work because of other commitments
  • The work may not meet expectations or may be of poor quality, with no opportunity for recompense without additional charges.

Therefore, there may be alternative employment arrangements that may suit your business better.

How to hire a freelancer

Some employers may be aware of freelancers in their network, such as former employees or those who may be engaged by their customers.

If you do not know where to start, these are two methods to try when hiring a freelancer.

Advertise the position

Freelance opportunities are advertised on sites such as Indeed just the same as temporary, contract, casual or permanent roles. This method can be especially useful if you intend to engage more than one freelancer or would like to create a list of several freelancers to pursue at any given time.

Conduct an internet search

Searching the internet for your required professional may be useful, as many freelancers have websites that highlight examples of their work for prospective clients to peruse. For example, a search for a freelance graphic designer will reveal a list of professionals in your local area, particularly if you include your city or region in the search term. Some internet searches may also reveal reviews and recommendations from their clients, which can help you find the right professional for your needs before you interview them.

Tips for onboarding and working with freelancers

A smooth onboarding process and respectful working arrangement will increase the chances that freelancers will want to accept any work opportunity that you provide them with. It will also improve the likelihood that they submit good quality work and meet your deadlines. These tips for onboarding and working with freelancers may help you to secure the best candidates.

Understand what you can offer

If you can’t afford the amount the freelancer charges, if the scope of the project isn’t worthy of their expertise, or if they can’t meet your deadline, you need to address these issues before engaging them. It is acceptable to discuss any issues with a freelancer before engaging their services to provide them with the opportunity to refuse as much as you with the opportunity to seek more suitable alternatives.

Therefore, going into the employment arrangement knowing what you can offer or negotiate will create a smooth onboarding process.

Provide clarity

Be upfront and clear about the tasks required, deadlines, workload and other expectations. This will ensure freelancers understand what is required of them and submit their work appropriately. If paying an hourly rate, this will also keep your costs down, as the work can be completed efficiently. If paying a set fee for an assignment, will keep the freelancer satisfied with the working relationship if they are paid on time, as they are not completing work unnecessarily or mistakenly.

Communicate

Regular communication may help prevent problems from occurring or misunderstandings being made. This may be easy if the freelancer is employed in the workplace or is part of a regular meeting or work group chat but becomes harder if the freelancer works remotely and independently. If the project is large, set reminders to check in with freelancers at regular intervals.

Also, remember to communicate with a freelancer before or after a project goes ahead. For example, if a project’s start date is delayed, informing the freelancer will enable them to re-organise their commitments to meet your new timelines. Meanwhile, appreciation for work or feedback after a task has been completed is also highly valued by freelancers.

Pay on time

Not paying freelancers on time or within an acceptable period is a common error that employers can make. Since freelancers work from job to job, it can be easy for employers to overlook their invoices. Treating them like any supplier and ensuring invoices are paid within the agreed period will lead to a happy working relationship.

Determine if a contract is required

Many freelancers operate based on an informal verbal or written agreement. For example, you may email a freelancer outlining the scope of the project, and they may respond via email that they accept and will proceed. This may be beneficial if you have formerly worked with the freelancer and trust them to complete the work or have an urgent deadline that needs to be met before a contract can be drafted. However, this type of agreement may work against you, as there is no legally binding agreement if the freelancer decides to back out of the arrangement.

You may decide that a contract is required to formalise the agreement and remove ambiguity. This will outline the required tasks, deadlines and payment that both parties must adhere to when signed. It is a legal document that may remove misunderstandings. It is best to seek legal advice when drafting the contract to ensure that it is binding.

If you are considering hiring a freelancer, taking these tips on board will increase the chances that it is a smooth process and the work will be completed easily and efficiently. Freelance workers will not be able to meet every workforce need for your business, but they can be handy workers to have access to when you need a few tasks to be completed.

Read more: Managing a Remote Workforce

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Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.