Start-ups Recognize the Benefits of Hiring Freelancers | DCR Workforce Blog

Start-ups Recognize the Benefits of Hiring Freelancers

Start-ups face their own unique challenges as they struggle to ensure that they get the fund infusion they need to grow further. Failure is not an option and no start-up wants to join the list of companies that statistically fail in the initial three to five years of their existence. Since this number is reputed to be as high as 92%, a start-up needs to execute a tough tightrope walk, looking down but trying not to fall into the abyss.

Most start-ups used to avoid hiring freelancers as they bring in the thought of a non-permanent state of affairs and indicate a lack of faith in the future for the longer term and traditionally that turned investor interest away. But, that’s now a thing of the past, as they recognize the benefits of hiring freelancers!

Slowly but surely, with the exponential growth of the gig economy, this mindset has been changing quite drastically in recent times. Now, start-ups use freelancers and contingent workers without fearing a negative reaction from investors or worrying about the stability of their future operations.

A current state of affairs

Start-ups are only mirroring the current state of affairs. In the general economy, here’s what you’ll find:

  • “Typical” 40-hour work weeks with eight-hour work days are slowly becoming things of the past.
  • According to some estimates, freelancers number nearly 54 million, representing one of the largest pools of talent available to employers, and almost forcing employers to accept independent contractors or go without.
  • Approximately 43% of these freelancers constitute millennials, who are fond of flexible work schedules, and demand better work-life balance compared to older generations. They’re also definitely more adventurous when choosing a career.
  • The bottom rung of the baby boomer generation is also embracing this opportunity to enjoy a flexible work schedule and growing its ability to sell its services to potential employers/clients.
  • Employers prefer to pay per job rather than per hour. This approach ensures that the task at hand is completed on schedule. The employer may be paying higher wages but can be assured of results and success in this new economy.
  • Technological advances allow tasks to be accomplished remotely, without compromising on productivity, quality and rigor.
  • The ability to work remotely allows a freelancer to provide services from anywhere on the globe, helping employers to source the best talent in the field and pay them only for the jobs they undertake.
  • There is no need to worry about workers’ benefits, taxes and retirement plans.

While all these make for a powerful inducement to engage freelancers, there are some unique attributes a freelancer offers, which helps clinch the deal.

Benefits of hiring freelancers

Expertise, specific skillsets and entrepreneurial spirit are counted among the contractor’s positives.

  • Many are experts in their own fields, have illustrious experience behind them in similar roles and can back up their claims with portfolios or referrals.
  • They have skills which can tackle the everyday tasks and challenges of a business and thereby meet the requirements of a business owner. These could be book-keeping, billing, marketing or even building the brand of the business on social media by engaging an audience. They’re also not likely to cause an offensive social media incident through their lack of experience and understanding of what is required of them.
  • They help an employer to save money on the cost of hiring them full-time – including training.
  • Freelancers are themselves entrepreneurs as they’re business owners. They can empathize with the needs of a new business and understand which tasks are important and which ones hold the key to the success of a business. For an established business, they would still accomplish all the important tasks with equal commitment and awareness.

It’s no wonder that the economy is all set to further boost the growth of freelancers by encouraging many more to join the freelancer movement. Even the Department of Labor completes its real-time count of this talent pool and plans to promulgate new laws to protect the rights of these workers to workplace protections and even income security.

So, if you’re running a lean, mean start-up, have you shed your resistance to the idea of hiring freelancers yet?


Disclaimer:
The content on this blog is for informational purposes only and cannot be construed as specific legal advice or as a substitute for competent legal advice. They reflect the opinions of DCR Workforce and may not reflect the opinions of any individual attorney. Do contact an attorney for advice specific to your issue or problem.
Lalita is a people/project manager with extensive experience in operations, HCM and training and development across industries like banking, education, business consulting, BPO and information technology. She believes in a dynamic approach to life and learning as change is the only constant.