How to hire and manage freelancers – if it’s your first time

What can you do? Hire a freelancer!

More businesses are hiring freelancers to quickly adapt to an increasingly competitive job market. Hiring a freelancer for a one-time project or contract basis can be a clever and strategic move for HR professionals who need to find a specialist or expert without a protracted search for a full-time hire.

The number of candidates per hire remains at record levels. That means that filling roles requires you to sift through a larger pool of candidates than ever. 

Hiring freelancers can be an effective and cost-efficient way to acquire the skills you need without all the red tape and logistical barriers of finding a permanent hire, and scale your team up or down as you need to. 70% of all small businesses in the US have worked with freelancers at least once.

However, hiring freelancers can be a tricky process if you don’t have the experience, internal processes, or documentation to find, hire, and manage them. This post will simplify the process and show you the steps to hire and manage freelancers so that they work smoothly with your team and contribute to your business goals.

Why hire freelancers?

Hiring freelancers has a lot of benefits for organizations who want to stay competitive, agile, and adaptable. They are guns-for-hire who give you access to specialized skills and expertise without the long-term commitment or cost of a full-time hire. There’s a few reasons why hiring a freelancer might be the best move for you:

1. Flexibility and scalability

Freelancers provide the flexibility to scale your team as project needs change. When you’re dealing with seasonal demand or bandwidth issues, hiring freelancers lets you pivot and respond to changing market conditions and changing workloads.

2. Access to specialized skills

Freelancers are often experts in a niche or specialized set of skills that you may not have access to in-house. You can bring them in for specific projects exactly when you need them, without the substantial time and resources it would take to train for them in-house. This is very useful for projects that require specific knowledge or expertise to succeed, especially those that involve creative work or technical development.

3. Reduced overhead cost

Hiring freelancers can save as much as 20% in labor costs compared to their full-time counterparts. Freelancers do not need office space, benefits, or ongoing training. Freelancers are typically paid per project or by the hour, so you can align their assignments with your current budget and scope.

4. Faster recruitment process

It is much faster and more straightforward to find and hire a freelancer than to hire full-time employees. The average time-to-hire for employees in the United States is 42 days. Freelancers can often be hired in 1-3 days. On many freelance platforms, jobs can be filled within 24 hours.

Full-time employees need to be onboarded, they need mentorship and guidance, they need benefits, and they need payroll taxes and bonuses. All freelancers need is a signed contract and one or two sync-up meetings before they get right to work.

That speed and flexibility are a godsend for any time-urgent projects with tight deadlines and not enough hands on deck to meet them.

5. Innovation and fresh perspectives

Freelancers often bring new ideas and approaches to problem-solving from their experience working with a range of industries and companies. 

That fresh perspective can bring ingenuity and creativity into your business processes. They can identify opportunities for improvement, streamline your processes, and inspire your team with new ways to tackle old challenges.

Freelancers also have to stay up-to-date with the latest trends and technologies and can adapt to change quickly. Their tools and cutting-edge techniques can help you stay at the forefront of your industry, driving long-term growth as well as short-term success.

How do you find reliable freelancers for your projects?

Hiring freelancers for the first time can be a daunting challenge if you haven’t done it before. The speed and expediency of the hiring process for freelancers come with a tradeoff of risk. How do you know if they’re trustworthy, reliable, and good at what they do?

Start with defining the scope and objectives of your project. Clearly outline your project goals, deliverables, and timeline. Be as specific and granular as possible. The more you can narrow down your project scope, the easier you can find freelancers to help you achieve them.

Create a job description

Once you’ve defined your project needs and the role the freelancer will play in helping you fulfill them, it’s time to make a job description. Later, you’ll put this job description up on job boards and freelance marketplaces so that freelancers can find you.

In your job description, outline the project scope, responsibilities, desired experience, and any special skills or requirements. Mention any communication tools you’ll use and preferred time zones, if any. This will help set expectations early so they’ll know what to expect.

Search on freelance networks and platforms

In a conventional hiring process, job seekers and candidates come to you. When hiring freelancers, it often works the other way around. 

As the hiring manager, you can look at different platforms and marketplaces where freelancers and independent contractors offer their services, and select the ones that best fit the needs of your project. Using a freelance marketplace platform lets you shop around and gives you some level of protection. They often post reviews, work samples, and verified portfolios along with their profiles. That way you know who you’re hiring, and you’re not just picking up anyone off the street.

There are several main freelance marketplaces you’ll want to know about.

1. Upwork: One of the largest freelance network platforms. Upwork is ideal if you’re looking for a wide variety of skills, and has strong project management features, time tracking, and secure payments
2. Fiverr: Designed for smaller, more defined tasks with fixed pricing, called “gigs.” Fiverr makes it easy to hire people quickly for specific tasks
3. Toptal: Specializes in top-tier freelancers, especially in fields like tech, finance, or design. 

Search through your network

Your own professional network can also be a good place to start your search for freelancers. 

The career of a freelancer lives or dies on their reputation. Referrals and word-of-mouth are some of the most common ways freelancers find new clients. When a freelancer does good work, their clients recommend them to other people in their network.

In that same way, you can tap into your own network to find reputable freelancers who can be trusted to do good-quality work.

Try searching on LinkedIn to find freelancers who are connected to people in your network. You can also use LinkedIn’s search functionality to find freelancers with the specific skills you want. Posting about your project on your profile can also attract candidates who are actively looking for projects.

Vet and select the top candidates

Vetting is an important part of the process of hiring freelancers. Before you bring them on board to work with your organization, you want to be as certain as possible that the freelancer is qualified, delivers good work, and will mesh well with your team.

1. 1. Review portfolios and work samples: Look for any projects that are similar to the one you are planning. Look at the quality and consistency of their work. Ask to see their processes for how they complete certain tasks – the steps they take, and the tools they use
   2. Conduct thorough interviews: When you’ve shortlisted your potential candidates, schedule interviews to gauge their experience and their approach to solving the problems you need help with. This will help you assess their professionalism and potential cultural fit with your team

• Check references and client feedback: Experienced freelancers often put testimonials and reviews on their LinkedIn and marketplace profiles as social proof. Consistently positive recommendations are the mark of a skilled and dependable freelancer

• Administer a skill assessment: Consider offering a paid trial project to evaluate the freelancer’s skills in a low-risk setting. This is useful for ongoing projects where you’ll be working together for long periods

Follow these vetting tips, and you can confidently find freelancers who know what they’re doing and can get the job done when you need them to. That minimizes the risk you take in hiring them and sets the project up for success.

Legal and contractual essentials

The world of freelancing can be a murky one from a legal standpoint, with grey areas to navigate and ambiguities to clarify. No two freelancers are alike – they’ll each have a different way they do business, a different onboarding process, and a preferred way they like to communicate with you as their client.

Having a written agreement protects both you and the freelancer from unforeseen disagreements and potential disputes. It’s worth asking yourself – what role will they play in your organization if you’ve never worked with freelancers before?

The difference between a freelancer and an independent contractor

Teams that have never worked with freelancers before often make the mistake of misclassifying freelancers as employees. This can lead to legal issues and heavy fines from back pay for taxes and benefits. 

It’s better for both you and them if you’re aware of the difference between a freelancer and an employee from a legal standpoint.

The terms freelancer and independent contractor are often used interchangeably, but they refer to two separate kinds of self-employed individuals.

Freelancers offer their services to multiple clients at any given time and are paid on a per-project or hourly basis. They usually work independently on short-term assignments and are given autonomy concerning their clients and workload. They are given free reign over how they complete their projects as long as the work gets done.

Independent contractors work on longer-term projects for one specific company, but they are still given control over how the work is done. They may have a contract (known as an IC agreement) that outlines the terms and conditions of their work, but they are not typically integrated into the company’s day-to-day operation like an employee.

Tax obligations

Freelancers are responsible for paying their own taxes, unlike an employees whose taxes are withheld from their salary. However, you still need to give them tax forms and ensure the freelancer is prepared to handle their own tax filings.

If the freelancer is based in the United States, you need to issue a Form 1099-MISC if you pay a freelancer more than $600 in a single year. If they are based in the United States but are not a citizen or permanent resident, you may have to fill out a W-8BEN form. Hiring freelancers based in other countries will involve different tax regulations. The freelancer will then have to file their freelance income on a Schedule C form.

Elements of a freelance contract

A freelance contract is what protects both you and the freelancer you’ll be working with from any ambiguities that can lead to legal trouble or disagreements, and sets the relationship on firm ground. There’s a format and key components that all freelance contracts generally include:

1.  Project scope and deliverables

Clearly define the work to be done. Outline the tasks, milestones, and deliverables for the project so the freelancer knows what they are responsible for. This helps ensure that both you and the freelancer are working in harmony and contributing towards the project’s goals.

2. Payment terms

Outline how the freelancer will be paid. This can be at an hourly rate, a fixed flat-rate fee, or based on milestones (e.g. completion of the project). Include details on who sends the invoices, schedules for making payments, and penalties for late payments.

3. Confidentiality and Non-disclosure agreements

If the freelancer is going to have access to sensitive company information like marketing strategies, intellectual property, or access to internal communication like your Slack channels, include a section to protect your proprietary information. This prevents them from sharing anything they might see or hear with anyone outside the organization.

4. Termination clauses

Include any conditions under which one or both parties can end the contract. This can be because of underperformance, missed deadlines, or other breaches of the agreement. A notice of 7 to 14 days is typical for shorter agreements, while any projects that are longer or more complex can have a notice period of 30 days.

Effective onboarding and integration

You’ve selected your freelancer out of 100s of potential candidates, you’ve signed an agreement, and the freelancer is ready to begin work. What happens next?

Successfully onboarding the new freelancers and integrating them into your team helps them to hit the ground running and work independently so the project can be completed successfully. Here’s how you can make that onboarding process as smooth as possible

• Intake call: Have an initial sync-up call with the freelancer to discuss the importance of the project and expectations for communication. This will help the freelancer understand the importance of the project in the context of your broader business objectives

• Access to tools and resources: Give the freelancer view-only access to any internal documentation they might need to refer to as they work, such as brand style guides, process documentation, templates, or any project management software you use. 

• Regular check-ins: Assign a dedicated point-of-contact who can deal with ongoing communication with the freelancer, answer any questions, and provide guidance where necessary. Check-in once a week or so to touch base about the status of the project

• Encourage collaboration: Bridge communication and encourage cooperation between the freelancer and your full-time employees. Freelancers who feel as though they are part of the team are more likely to contribute to your organization’s overall goals. Consider making an exclusive channel in the company Slack so you can pass on-off communications with them back and forth for any quick questions or concerns

Hiring freelancers can be the best business decision you make

Hiring freelancers gives you access to specialized skills and a fresh outside perspective. As long as you hire reputable professionals from vetted freelancer platforms or your own network, they can be a great way to fill any skills gaps in your team or accomplish time-urgent tasks that require a specific skill or expertise. 

The Workable onboarding software can help you find and hire new freelance specialists and set both them and your project up for success. Book a demo today.