The Difference between Freelancer and Employee

I did a post a few weeks ago about why a business might want to hire a freelancer instead of having an employee, but there are times when an employee is better and I’ll explain that here.

While my post before was pro “Freelancer” it really was for that small business owner wanting to outsource very specific tasks and for the employer who didn’t have enough work to accommodate a full or part-time position. But what truly is the difference between freelancer and employer not in terms of pay, but in terms of the role they play in your business.

The Pros and Cons of Freelancers

A Freelancer has other clients, they work on their own schedule and do specific tasks for you built into a contract. You can’t add anymore work to a freelancer’s work load without first adjusting that contract or knowing if the scope of the work asked fits within the guidelines of that contract or their pricing. Also some freelancers have a packed schedule with all their clients and they may not be able to accommodate your request and that is at their discretion, not yours. But on the upside, a good freelancer manages their time well, has competing rates that make their services more attractive than having an employee, and may have more optimal delivery times for their deliverables because they have a system in place just for this.

The Pros and and Cons of Employees

An employee however is more dedicated to the company as a whole. The employee is more invested and may be better at trouble shooting problems within the entire company and can utilize their time in fixing those areas of need and knows what is going on inside the business from a team level perspective. You definitely have more dedication when you hire an employee.

So how do you know which one is right for you?

Why might an employee be a better fit for you?

• You can control more of their time

• You can dictate what tasks they prioritize

• You can have them work on special projects that help the overall function of the business.

• You can control their workload

• You can control deadlines

• They are part of the team

Why might a Freelancer be a better fit for you?

• You only need specific tasks accomplished that your current employees can’t or don’t have expertise in, or can’t handle within their work load or job description.

• What you need done is very specialized and while benefits the company, isn’t an ongoing process. (It’s a one time job)

• You have a budget and can’t afford competing part-time full or full time rates

• You don’t have a brick and mortar business. (While you can hire remote employees, this is often does a freelance opportunity especially with small business owners)

• Your company doesn’t have the ability to offer benefits or worker’s compensation

Another reason to chose a freelancer is 9 times out of 10, a freelancer is an expert in their field offering services that are top notch compared to an employee hired that manages many different aspects of a company and is a jack of all trades kind of person. An example of that would be an administrative assistant. This doesn’t mean the admin assistant isn’t a good choice for what you need but only you will know what your company needs to be successful.

Here’s an example of why you might want to use a Freelancer instead of an employee. Back in march I knew of a small counseling agency that had an office manager and an administrative assistant. The administrative assistant was offered a work at home opportunity that helped her be more present at home while still earning a higher income. Knowing that she could still perform part of her job from home, she offered up a freelance contract to the counseling agency keeping up with the tasks that she could still perform at home. This lowered the cost of the employer who often needed to find work to fill her time when things were slow and the employer isn’t paying her for dead time. The employer has reduced their costs by roughly 80% a month and in turn, they’ve learned to utilize some of their interns for simple administrative tasks that help out the office manager, which was a win win for everyone involved.

Not all scenarios are this easy, but this is just an example of when you need an employee and when you don’t.