As if deciding whether or not to outsource isn’t enough, deciding who to hire is a whole different can of worms. And “who to hire” goes deeper than just finding the right specific person – it’s also whether you want to hire a freelancer/independent contractor, or an employee.

First off, let’s talk about the difference between the two.

• A freelancer is a self-employed individual who is hired on a temporary basis to complete specific projects or tasks. They are often part time and have multiple clients, and they handle all their own taxes.
• An employee, on the other hand, is either a full or part time worker who is part of the company, presumably for the long haul. As the employer, you are responsible for training, handling their tax withholding, and possibly providing benefits.

Let’s look at some of the pros and cons to freelancers and employees…

Hiring a Freelancer, Pros:

• Ease & Flexibility: It’s very easy to hire freelancers based on your distinct needs in any given season. You can hire them for a specific project, task, and/or amount of time. It is also much faster to hire a freelancer than it is an employee.
• Cost Effective: You can save money training, work space, and benefits by hiring a freelancer. Freelancers are also almost always part time, keeping your monthly cost much lower than a full time employee.
• Expertise: A freelancer will often have expertise in an area that is hard to find in a full time employee. There is also an invisible quality standard that exists – you can’t make it as a freelancer if you’re not good at what you do, so most freelancers you find are very very talented.
• Connections: Generally, an experienced freelancer has a huge network. This can come in handy if you need quality referrals to other freelancers or industry professionals.

Hiring a Freelancer, Cons:

• Commitment: Freelancers only work on a contract basis, so they will likely not have the same level of loyalty to your company or brand as a full time employee would.
• Control: You do not have any control over a freelancer’s schedule or working hours, and you can’t supervise them in the same way you do an employee. They were hired to get the job done by a deadline, not to work at a specific time. This can also sometimes make communication difficult.
• Short Term: If you’re looking for someone to develop long term relationships with clients or perform a functional task for a long period of time, a freelancer may not have the availability that you’re looking for.
• Intellectual Property Concerns: IP rights can be a bit more challenging to navigate with a freelancer. You will have to negotiate what work belongs to them vs you/your company, and make sure to write it into their contract.

Hiring an Employee, Pros:

• Long Term Stability: A full time employee is more likely to be with you long term, and that commitment and loyalty provides stability for you and your business.
• Company Culture: If company culture is important to you, it’s almost impossible to build without full time employees.
• Full Control: You have control over an employee’s work hours, tasks, and responsibilities.
• Development: You can continue to train and develop employees to move up within your company as it grows, giving them upward mobility while you are confident that your business is in well-trained hands.

Hiring an Employee, Cons:

• Higher Costs: When you hire an employee, you are responsible for additional costs like payroll taxes, benefits, office space, and any equipment they need in order to complete their work.
• Legal Obligations: Hiring employees comes with labor laws, regulations, and paperwork. You are much more legally responsible for an employee than you are a freelancer, especially when it comes to terminating a working relationship.
• Longer Lead Time: Recruiting and training employees usually takes a much longer time than finding and hiring freelancers, which can delay project timelines or exacerbate the gaps you’re trying to fill.
• Not Specialized: Most employees are not necessarily going to have the same sort of specialized skill that a freelancer would have. There needs to be a lot more training to get an employee up to speed, whereas a freelancer would already have the specialized skill you’re looking for.

Ultimately,

Whether you decide to hire a freelancer or an employee should be more based on your needs than anything else. A pro/con list is great, but only if you understand what’s actually a pro and a con for you! If you need help figuring that out, ask yourself some of these questions:

• What is the nature of the work you need outsourced? Is it project based or ongoing? Will it require full time hours or part time?
• What kind of skillset do you need? Specialized or general/multiple?
• Do you have other workers or clients that this person will be interacting with? What do you need the team dynamic to look like?
• Do you have any budget concerns or limitations?
• Do you have any time concerns or limitations?
• Do you have a plan for scaling your business? How soon is that plan going into effect?

Ok, I know that was a LOT. So in the midst of all of this, remember where we started: the importance of outsourcing when needed. Whatever you choose, it should help relieve any stress you may be feeling about your workload and the ability to scale your business. I hope this is helpful in your outsourcing journey, I know you’ll choose whatever is best for you!