A guide to hiring freelancers for your business

Whether you’re looking to expand your business or need help getting through a busy season of project work, hiring freelancers can help accelerate your path.

In 2022, approximately 59 million U.S. workers were independent contractors, totaling about 36 percent of the workforce.1 Businesses can easily access this growing pool of experts no matter where you’re located.

Ready to get started? In this guide, we’ll review key terms and pros/cons to consider. We’ll also cover the following steps to successfully hire your first freelancer:

  1. Determine your hiring needs
  2. Decide on a budget
  3. Write a job description
  4. Promote your job advertisement
  5. Interview the candidates
  6. Select the right freelancer – and sign a contract

What is a freelancer?

A freelancer is someone who offers services to clients on a project, one-time, contract, or temporary basis. They’re classified as self-employed or an independent contractor, allowing them to work for multiple businesses and giving them the freedom to set their own schedule, accept or deny projects, and manage their finances.

Freelancers offer a range of distinct specializations, with many businesses using them for technical and creative projects, such as:

  • Web/graphic design
  • Programming
  • Writing and editing
  • Translation services
  • Web/mobile development
  • Marketing and sales
  • Human resources
  • Customer service
  • Accounting and finance
  • Photography and videography
  • Administrative/virtual assistant
  • Content creation
  • Specialized consultants

Pros and cons of hiring freelancers

There are many benefits of hiring and working with freelancers, including:

  • Cost-effective. Freelancers usually cost less than full-time employees, and there are no benefits or overhead costs to pay.
  • Increased flexibility. Freelancers can be hired on a one-time or project basis, allowing companies to have access to specialized skills as needed without the commitment of a full-time employee.
  • Unique expertise. Freelancers can bring specific skills and experience to the table, giving business owners access to capabilities they may not have in-house.
  • Speed and efficiency. Freelancers may be able to work faster and more efficiently than full-time employees, as they are being hired and paid for a specific task.

As with anything, there are some drawbacks to hiring freelancers that a business should be aware of, including:

  • Lack of commitment. Freelancers are not bound to the company like full-time employees, which can result in a lack of commitment and continuity of work.
  • Quality control. There is no guarantee the quality of work produced will meet your expectations – and it can be challenging to monitor a freelancer’s progress.
  • Communication and coordination. Freelancers work off-site, which can result in difficulties with communication and coordination, leading to misunderstandings and delays.
  • Limited control. Companies have little to no control over a freelancer’s working methods, hours, and processes.

How to hire freelancers

If you’re set on hiring freelancers, follow this guide to get started:

Determine your hiring needs

How much work do you have for a freelancer? How long will the project last? Can one freelancer handle it all, or do you need different freelancers with varied skillsets?

To simplify the process, jot down a list of exactly what you’re looking for, as well as the ideal working relationship. For example, a project manager at a marketing agency has a need for a freelancer to write five monthly blogs for a manufacturing client. Therefore, they are looking for a writer who specializes in trade writing and has the bandwidth to create ongoing content.

Decide on a budget

Before you start speaking to potential freelancers, it’s critical you establish a budget. How much can you spend per month or per project? Iron out your numbers to avoid overspending or underpaying.

It’s important to note that freelancers often invoice in a variety of ways, with hourly, project based, and retainer among the most common. Ultimately, it depends on factors like the type of project, the complexity, the freelancer’s experience, and your budget.

Write job descriptions

Once you’ve decided what you need and your available budget, it’s time to start the search. That begins with a clear, well-written job description outlining the scope of the project, the desired skills and experience, and the expectations — factors to help you find more qualified candidates.

By the time you reach the interview stage, the freelancer should have a strong understanding of what the role entails.

Promote your job advertisement to find freelancers

Finding freelancers will require some outreach. You can promote the job on various platforms like recruitment sites and freelance platforms. You can also share a link on your personal networks, such as your social media channels.

Interview the top candidates

Ideally, you will have received numerous applications from freelance candidates. Take the time to review their resumes in detail, view their websites or portfolios, and explore any references they may have provided. After narrowing down the candidates, request a 30-minute phone or video interview.

Below are sample questions you may want to ask during the call:

  • Can you walk me through your experience and background?
  • Can you provide examples of similar projects you have worked on as a freelancer?
  • How do you approach project planning and execution?
  • How do you handle changes or feedback?
  • How do you communicate with clients during a project?
  • What is your availability, and how do you manage your workload?
  • Can you work within the given timeline and budget?

Select a candidate – and sign a contract

When you have identified the right candidate for the role, be sure to provide a contract, also called a statement of work or scope of work (SOW). This document generally includes information like:

  • A brief overview of the project or work
  • A detailed description of the tasks and deliverables
  • Timeline and scheduling
  • Budget and fees

Once the signatures are complete, you’ll be ready to onboard the freelancer and get the project started. With the basics on how to hire freelancers under your belt, explore more tips and tools on how to run your business.

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