Best Practices for Hiring Freelancers: Key Things Employers Should Know

Your company is preparing for a big product launch next quarter, and your marketing team wants to use search engine optimization (SEO) as part of its strategy to build anticipation for the product launch. The problem? You don’t have an in-house SEO specialist to optimize your website, and you need one fast.

What then? Hire a freelancer.

Many businesses are hiring freelancers to adapt to the competitive job market. Whether for a one-time project or on a contract basis, hiring freelancers is a strategic move for employers and HR managers who require experts without the protracted search for full-time employees.

However, finding the right freelancers to fill these gaps can be challenging for many employers. You may be wondering how to hire a freelancer for your business and what the best practices are to follow. Well, you are in the right place. This article will simplify this process, discussing freelancer vs. employee differences and detailing the best practices for hiring freelancers.

The Difference Between Freelancers and Traditional Employees

Before getting into why you should consider hiring a freelancer, you should first understand what sets them apart from employees. Freelancers are professionals who pursue jobs without long-term commitments to any employer. Unlike full-time employees who work for a particular company, freelancers act independently without any affiliation with an organization.

According to Statista, about 64 million people did freelance work in the U.S. in 2023. This represents an increase from 2014 when an estimated 53 million people were freelancing.

Typically considered independent contractors, freelancers are self-employed and work on a per-project basis. One main difference between freelancers and employees is that the former don’t receive employee perks such as health insurance, paid time off, or retirement benefits.

Benefits of Hiring Freelancers for Your Business

Employers often have a hard time finding the right talent for specialized or time-sensitive projects. Here’s where freelancers come in, offering a practical solution.

Hiring freelancers can be highly beneficial because they:

• Bring specialized expertise and skills
• Provide a cost-effective solution since they don’t receive employee benefits
• Are ideal for project-based jobs
• Generally don’t require an office or equipment
• Are widely available, allowing businesses access to younger workers – millennials and Gen Zs – on an as-needed basis
• Can bring a fresh perspective to your projects
• Shoulder some of the workload, protecting your team from burnout
• Allow you to scale quickly without long-term commitments

Businesses that understand freelancers can be valuable additions to their teams and help them tackle skill-based projects can gain a competitive advantage in their industry. Just be sure to find the right freelancers to join your team.

Best Practices for Hiring Freelancers

Incorporating minor changes into your hiring process can attract a wider pool of freelance talent while reducing operational costs. But how can you set yourself up for success? Start by laying the groundwork thoughtfully. Here are seven best practices to follow when hiring freelancers for your business:

1. Get Worker Classification Right

Do you know the differences between a contractor, a freelancer, and an employee? Misclassifying a freelancer as an employee can lead to costly legal consequences. Unlike employees or contractors bound by specific terms, freelancers set their schedules and control their work methods. Clear definitions keep your business compliant with federal and state laws.

2. Draft Clear Contracts

A comprehensive contract is like a roadmap – it keeps everyone on the same path. Make sure you include key details such as payment terms, deadlines, project scope, and intellectual property ownership rights. 

For instance, if you’re hiring a web developer for your restaurant business, specify whether they’ll provide ongoing maintenance after they complete a project. This clarity builds trust and avoids surprises.

3. Clarify Expectations Early

How often has a project gone off track because not everyone was on the same page? Freelancers do their best work when they have a clear picture of what employers expect. If you’re hiring a freelancer for a marketing campaign, ensure they have everything they need, including your brand’s guidelines and a specific timeline.

4. Maintain Open Communication

Communication is like the glue that holds a project together. Be transparent about your availability for updates through emails or a project management app. Have you considered scheduling quick check-ins to address questions or provide feedback during the hiring or onboarding process? Keeping connected helps everyone stay aligned and adapt as needed.

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5. Understand Freelancer Rights

Freelancers work best when allowed to own their processes. Instead of micromanaging, focus on outcomes. Remember, they are independent contractors, not full-time employees. Still, freelancers, just like employees, have rights that include health and safety protection in the workplace and protection from discrimination.

Compliance with labor laws is another important consideration for an employer. For instance, in the state of New York, all contracts worth $800 or more must be in writing. Lack of compliance can get you into costly legal trouble.

6. Pay Promptly and Transparently

Would you trust a client who delays payments? Freelancers, too, count on timely compensation, and clear agreements around rates and payment schedules prevent misunderstandings. Use reliable methods like direct deposit or digital payment platforms to facilitate smooth transactions that build goodwill.

7. Embrace a Remote Work Culture

Freelancers often work remotely, so it’s important to have a strong remote work culture in place to support them. Creating an inclusive and collaborative environment is key as more businesses adopt hybrid or fully remote teams. When working with freelancers, think about how you can make them feel part of the team, even if they aren’t physically in the office.

Set up regular virtual team meetings, offer flexible hours, and use collaboration tools to keep everyone connected. Don’t forget to talk about time zone differences, as these can impact communication and project timelines.

Hire Freelancers Today to Grow Your Business

If your business is missing a specific skill set, consider following these best practices when hiring a freelancer. While it can seem like a huge deal to hire someone for one project, doing so can substantially increase your business’s capacity and output when needed.

With iHire, hiring freelancers has never been easier. Post a job today with our Freelance tag or search our resume database to gain access to top talent.