Freelancing has seen a significant rise over the last decade. In 2020, more than 59 million people were freelancing in the United States. With the upsurge of talent available in the “gig economy,” companies are finding hardworking professionals whose position allows them to moderate their hiring budget and beyond. Businesses large and small rely on freelancers every day. The need is varied, whether it’s for help completing projects to meet deadlines, outsourcing important but short-term tasks such as designing a logo, writing copy or performing financial analysis. Companies do so mainly to cut costs but to gain other benefits as well.
Hiring highly skilled freelancers helps to boost productivity, improve speed to market and increase innovation within a company. Also worth mentioning, is the cost effectiveness of hiring a freelancer over a full-time employee. This is related to the fact the employer does not have to pay for health insurance, retirement and other benefits with these freelancers. While it may seem cut and dry as to who businesses should be prioritizing, choosing who to hire depends on the short- and long-term goals of the business as well as the landscape of the workplace. As increasingly more individuals seek better benefits or remote work or hybrid arrangements, there could be continued changes to the pros and cons of hiring these two types of workers. To learn more about this topic, be sure to check out the infographic supported alongside this post.
Hiring A Freelancer vs. Full-Time Employee this infographic was contributed by Tab Service Company, a provider of a comprehensive 1099 e-file service
