What is Freelancing: The Pros & Cons of Hiring Freelancers

The COVID-19 pandemic saw an exponential rise in freelancing as remote work became the norm to minimize physical movements. As a result, many business owners are scratching their heads, asking, "What is freelancing?" and "Why is it becoming a new trend nowadays?"

To clarify, freelancing is different from outsourcing and definitely far unrelated to hiring full-time employees. So, if you're planning to hire a freelancer, you may spare some time reading this article to make up your mind. Above all, what you need is to be educated to make sound decisions. So, let's start with "What is freelancing and how does it work?"

What is freelancing and how does it work?

Are you wondering what freelancing means in the business world? We'll try to answer the question "What is freelancing?" in a way you can easily understand.

Freelancing is the practice of working as an independent contractor rather than being employed by a company.

In other words, independent contractors use their skills, education, and experience to work with various clients and take on multiple assignments without being tied to a single employer. The number of projects or tasks they can take depends solely on their ability to complete them as requested.

People who do contract work are often called freelancers. Too often, they work in the comfort of their homes. But there are also instances where they may be required to work at their client's office.

What is a freelancer: A quick look at how a freelancer works

Saying that the freelancing world is cutthroat is already an understatement. Many successful freelancers out there would agree on how difficult it is to build a freelance career from the ground up.

Now that you have learned more about "what is freelancing?". It's time to uncover how these independent contractors begin before scouting clients online.

It requires a lot of work to make it in the freelancing industry. Freelancers always have to update their skills according to the needs of the industry. In short, they spend a lot of time and money taking online courses and attending webinars.

The competition to stand out does not end up with upskilling. Freelancers should also build a stunning portfolio that wins clients.

After getting these things done, these freelancers flock to popular gig sites like Upwork and Fiverr to find clients. From there, they submit proposals in the hopes of landing legitimate remote jobs that pay well.

In terms of payment methods, freelancers usually get paid either through hourly contracts or fixed-price contracts.

In hourly contracts, clients only pay for the hours that the contractor works. Meanwhile, fixed-price contracts give clients a sense of security in knowing how much money will be spent. Here, freelancers are paid all at once or by milestone, a contract amount paid by the client which is deposited to the freelancer's account.

What is an example of a freelancer?

Anyone who can fulfill a short-term or part-time contract is eligible to become a freelancer. But to give you an idea of who most likely dominate the freelancing world, we listed here the top 10 best and highest paying freelance jobs in 2022 according to Invoice2go:

Pros and Cons of Hiring Freelancers

Pros

Lower compensation costs

Yes! Hiring a freelancer will help you reduce costs. Also, there are many reasons why compensation costs are lower when you hire freelancers.

First, you're not responsible for a host of benefits on behalf of your freelancers. Unlike hiring full-time employees, you're not required to provide benefits like Medicare, Social Security, health insurance, retirement benefits, and more.

Second, you don't have to shell out for renting office spaces. Freelancers usually have modern home offices and can work from anywhere.

And lastly, businesses get to cut traditional costs by 60% since freelancers charge less compared to full-time employees.

If you're on a shoestring budget, hiring an entry-level freelancer might be good for you. But don't expect a professional service. Take note that you'll get what you only pay for.

Minimal supervision

If you're a busy business owner and have no time to manage a team of employees, maybe hiring a freelancer can help you.

Freelancers usually require minimal supervision. Clearly, they've worked with hundreds of projects before, and they know how to approach tasks quickly with little to no guidance.

Moreover, freelancers operate their services, which thrive on repeat business and repeat clients. Therefore, they strive to submit their best work every time to keep the relationship.

Also, you only pay them for the work they complete, so you don't waste money on downtime.

Flexibility and availability

Freelancers are frequently available on short notice to meet an unexpected demand that your in-house team may be unable to meet. Also, you can hire them by the job, the day or hour.

For example, if you need someone who can instantly produce artwork for your social media; you can hire a freelance graphic designer. To sum up, they can accomplish the task in a fast turnaround time and pay them only for the service they rendered.

If you have short-term tasks that can be done in hours, it's wise to have freelancers you can contact whenever you need their expertise.

Cons

Accountability issues

While freelancers are reliable for many reasons, there are also instances where they disappear or let go of a project they can no longer handle.

Remember that these freelancers juggle multiple tasks from many clients. That said, be reasonable in giving tasks and deadlines they can work on. It's not good to lose an accountability buddy when a deadline is fast approaching.

To sum up, you can't rely on a freelancer if you have no long-term commitments. This is true, especially for those you only meet on freelancing platforms.

Security threats

Moreover, hiring a freelancer can pose a security threat to your company. Keep in mind that freelancers can use all of your data for whatever it may serve them. For example, they can use it for their portfolio or, worse, steal your company's ideas.

Hence, requiring a freelancer to sign a non-disclosure agreement (NDA) is important. By doing so, you give them insight into what they can and cannot share about the project they are working on.

Subpar quality of work

Clearly, the main reason why freelancers can potentially give you a below-average quality of work is that they have a lower investment in your company.

What does it mean? Their loyalty to your brand is probably lower than your full-time employees. Since they work on short-term projects, they don't understand the brand identity and core values of the company they work for.

As a result, brand inconsistency happens across all outputs. Hence, it will need more than two rounds of revision to get it right.

Outsource Your Business Needs to KDCI

Hiring freelancers and full-time employees are both viable options for getting the best talent out there. But there is a better alternative that offsets the downsides of the two. That's outsourcing to a reliable service provider with extensive industry experience handling offshore projects.

Our company, KDCI, has been in the industry of outsourcing for over ten years. We have delivered scalable offshore staffing solutions to various SMEs that needed help in their eCommerce, digital marketing, and even customer support.

Also, we have worked with some of the top brands in the world like Apple, Dell, and Canon. So, we can guarantee you professional services at a competitive price.

Do you want to get started with outsourcing? Talk to our experts by clicking the button below

Hiring Freelancers: Understanding the Pros & Cons