What are the differences between employing staff and utilising freelancers?

What are the differences between employing staff and utilising freelancers?

Here are the most important HR areas to remember:

Employing Staff

Advantages to the business:
1. Productivity and loyalty increases
2. Employees feel a sense of belonging
3. Boosting morale and comradery
4. Retaining key skills in the business
5. Positive company culture
6. Job security and commitment
7. Ability to control the work they do
8. Always available at the time you require

Disadvantages to the business:
1. Costly to recruit
2. Investment in training and onboarding until they are up to speed and accuracy
3. Costly commitment to salary
4. Paid holidays and sick pay
5. Paid pension entitlement
6. Need to manage their performance and conduct
7. Required to provide office equipment and supplies
8. Less flexibility if you want to grow quickly or scale down work in quiet periods
9. Employer’s liability insurance required

Freelancers

Advantages to the business:
1. You can control the costs, only paying for the work they do
2. Save money on purchasing equipment, they use their own laptop, phone and tools for work
3. Scale up or down according to the workload as and when needed
4. They have specific, niche skills which can be harnessed
5. No employment rights and benefits
6. No need to pay for their insurance

Disadvantages the business:
1. Free reign – Freelancers must be self-disciplined, or they can lose sight of your business priorities
2. Not fully invested in your business long term goals
3. Lack of loyalty, freelancers may not give your work priority if other work or personal commitments that are more pressing
4. Communication can be slow if working remotely or trying to access their diary for client meetings
5. Data Protection, are you willing to share all your client files and data with a freelancer
6. Isolation, not being in a workplace freelancers may feel lonely long term

Still undecided which would work better for your business?
If you would like a complimentary 30 minute call from Foreshore HR just email sam@foreshorehr.com or call 023 9298 2685.