The gig economy has changed the way we work for decades. However, the COVID-19 situation made it more pronounced. Professionals are choosing the contractor life over the full-time employee routine. People prefer to hustle in multiple roles at multiple companies, whilst working from home over the traditional 9-to-5.
These hustlers are typically known as freelancers and they come with a stereotype image (not quite true). Recruiters often miss another breed growing within this crowd – the independent contractors. The differences are subtle but important. We will look at it in a bit.
And there really is no either-or. Both have specific use cases and knowing them will help you make the right decision.
Know your use-case
Do you need a greater degree of commitment?
Contract staff is independent but not entirely. They can fly away to pick another project after yours is done but you can sign up to have their hundred percent commitment while they work for you. Yes, contract staffing can be on a 40-hour week (as much as your perm employee).
A freelancer (without a black and white contract) can be a bit of a struggle as they juggle time and spread their timesheet thin across clients. They can be resourceful if employers do a good job of defining expectations and signing off on it.
Do you want to keep your staffing costs under check?
Adding contractors does not really add to your permanent staff. Typically, they are not eligible for standard employee benefits and help you keep your staffing costs under check. You get people to get work done and there are limited associated labour laws or costs. You can easily save 20 to 30 percent when you understand that you pay no health insurance, no retirement benefit or care packages. Long-term projects that require commitment but not a permanent investment, work well in a contract staffing setup.
With freelancers, the benefit is similar in short-term projects. You get work done, on a project basis or hourly basis. There is no employer-employee relationship. When you need something done quickly, they can be your go-to choice.
Do you have project that may span years or months?
Would you rather not risk it – a talent available for some part of the project and not available later? You need to hire a contract staff. You can tweak the terms to make it part-time or full-time but have them committed to your project for as long as it is needed.
With a freelancer, contracts are rarely signed, and they may choose another better paying gig over yours, after few months.
Would you like to mitigate your risks?
With contract staffing, you can downsize at will without worrying about layoffs and the associated bad PR. You simply don’t extend the contract and the relationships ends without any fuss.
With freelancers, the milestones have even shorter duration commitments.
Would you like quick access and hiring?
When you need super specialized skill sets, hiring process takes time. That’s not the case with independent contractors. There are platforms like www.theflexiport.com that have a pre-vetted database ready for hiring committed workers. Hire for the duration you need. Simply agree on the terms and sign off. No commissions and a quick start!
For freelancers, there are numerous marketplaces too. You might have to spend sometime vetting profiles and reading reviews though.
Would you like quality work?
Employees have their peaks and valleys. That is not quite the case with contract staff. They know their renewal is dependent on their performance and they strive hard to get prove their mettle. Their reputation is everything and they strive for repeat work.
Freelancers can provide quality too; you might have to just find the right person for the job. Usually they don’t have contracts so they can quit at the sign of any stress. To get consistent quality, you need to build that rapport and trust with the right person.
The landscape is changing. Are you?
There is an irreversible change happening around us.
India’s gig sector is expected to grow to $455 billion by 2024 at a compounded annual growth rate of 17 per cent—with potential to grow at least double the pre-estimates for the post-COVID-10 pandemic period.” – The Week
So, there is no debate when it comes to this new and growing trend. What’s the big question then? The type of flexible force you would want to build! Would you rather choose a freelancer or a contract staff for your temp staffing needs?
We say don’t be rigid. Choose as per your situation. Long-term roles requiring big commitment? Go for contract staffing! Need something quick – more like a gig, one-off task, or short-term project – go for a freelancer. If you don’t need a 9 to 5 commitment, tweak your terms to remote or part-time and get more talent choices. As long as you understand the implications, you can always mix it up and have diverse talent types to work for the company. Remember, we say it again, there is no either-or.
