What is the difference between freelancers and regular employees?
Since the freelance industry is developing, a lot of employers wonder what is the difference between hiring freelancers or regular full-time workers. Here are some tips that can help you to decide between one and the other :
- Before deciding on who you will hire, you have to think about if you can attract and afford a full-time employee for a longer period of time. It might take a much longer time and effort to contact a top full-time employee vs. a top freelancer with the right skills and experience. Hiring a freelancer is also at a lower cost rate than hiring a full-time employee.
- Productivity difference. According to the Inc article, the research revealed that a regular full-time employee actively works 3 hours out of 8, in particular, 2 hours 53 minutes. On the other hand, freelancers and remote workers turned out to be constantly more productive, which can be explained by fewer distractions that may occur at the workplace, as well as freelancers are also more flexible.
- The difference in expertise. As one might think that freelancers are less skilled and experienced, the statistics reveal that top consulting firms use independent consultants, while other companies work closely with independent consulting firms. Moreover, top Tech companies rely on freelancers in their expertise. As for the efficiency of skills, the Upwork study shows that 59% of freelancers participated in training to higher their skills vs. 36% of non-freelancers.
- Engagement. In 2020, Gallup began tracking their employees’ engagement, meaning how communicative, active and committed the employees are. Turns out, only 35-36% of employees are fully engaged at their workplace. At the same time, freelancers can’t afford to be disengaged, as their job success depends on how well, fast, and efficient they perform it. The recent IBM study found that generally, freelancers are more engaged than regular employees, as well as they have greater satisfaction with their work.
- Is there a big price difference? No doubt, freelancers are pricey, as can also be regular employees. However, in this case, it’s up to the company to decide how long they would like to work with a freelancer, what kind of job they want him/her to perform, etc. Without having to keep one person for a long time, a firm can just pay for the amount of time spent on the particular task. “Freelance converts stuffing from fixed to variable cost” (Younger, 2021)
As can be seen, freelancers have multiple benefits compared to regular employees. They are more flexible, productive, and can be less costly. Either you’re a business owner or thinking of becoming a freelancer, you might consider this information useful for your future decisions.