What is a freelance worker?
A freelance worker, or independent contractor, is a self-employed person contracted by a company to perform work. This is often carried out on a short-term or “by-the-job” basis. Typically, these individuals work for multiple companies, but some may be contractually obligated to work exclusively for a single client. Some of the most common tasks carried out by freelance workers are content writing, graphic design, web development, data entry, accounting, photography, social media, and translating.
How common is freelancing in Canada?
According to Statistics Canada, approximately 624,000 Canadians’ principal employment met the definition of “gig work” during the last quarter of 2022. Statistics Canada characterizes this form of labour as short-term jobs that have no assurance of ongoing work and require the freelancer to find their own sources of employment. The Canada Revenue Agency defines gig workers as independent contractors and freelancers who provide services complying with short-term contracts, freelance arrangements, or other “gigs” on online platforms.
What are the benefits of hiring freelancers?
Freelancers and independent contractors may present numerous benefits to your organization, such as:
Flexibility
One of the most notable advantages of hiring a freelancer is that they provide your company with a flexible, adaptable workforce. In a study conducted by Employment and Social Development Canada, employers stated that these gig workers enabled them to quickly expand their workforce, acquire workers with niche skills for projects, and remove the need to keep these talented individuals on the payroll for the long term.
Readiness
A freelancer is ready to get the job done without extensive training or prep work. Their expertise allows them to tackle projects efficiently, freeing up the rest of your team to concentrate on other tasks. Furthermore, hiring freelancers may save your organization substantial resources required for training and human resource tasks.
Self-sufficiency
Another upside to hiring freelancers is the fact that they make little work for your human resources and payroll department. They pay their own taxes and make their own Canadian Pension Plan contributions, they remit invoices, and they supply the requisite equipment for the job.
Potential for permanent hire
Tapping into this type of talent enables you to “test drive” a freelancer to see if you’d like to offer them a permanent full-time or part-time position. You have the opportunity to observe the quality of their work, their work ethic, and how well they mesh with team members without committing to anything outside the freelancing contract.
Cost-effectiveness
As noted above, hiring independent contractors can save your organization the time and money associated with training, human resources, supplies, and long-term payroll expenses. They can also ensure that short-term projects do not overburden your existing staff or lead to excessive overtime costs.
What is the potential downside to freelance workers?
As with any form of employment, hiring independent contractors can pose some problems. Employment and Social Development Canada’s study, mentioned above, shows that the largest hurdle for employers is finding talent at the right time. Another concern is the lack of control an employer has over where work is conducted and when it takes place.
How can you attract the best talent?
Here are some of the things that freelancers look for in a job when you’re looking to hire the best talent:
- Flexibility: Many freelancers opt for self-employment, as they wish to control the number of hours they work and when they work them. Present flexible work terms so freelancers know you’re willing to work with their schedules or time zones.
- Team-building opportunities: Freelancers, particularly those who work remotely, have little opportunity to connect with their team and develop a sense of belonging and loyalty. To enhance your company’s relationship with them, you can introduce virtual team-building activities that enhance cohesiveness such as social channels, virtual meetings, and mentoring programs.
- Financial incentives: While offering an attractive rate of pay is important, there are other financial incentives that you may wish to consider like bonuses related to projects or exceptional performance. You may even reward freelancers for referring other talented independent contractors to your organization.
- Employee Assistance Programs: You can add your freelancers to your company’s EAP, ensuring that they have access to a variety of services including mental health resources and counselling for anxiety or depression, financial woes, and family issues. You may even wish to implement an eldercare program through your EAP.
What does a freelance contract look like?
If you’ve decided that hiring an independent contractor is the right choice for your company, you can develop a freelance contract that clearly communicates the terms of the relationship. If you’re new to contract development, it is recommended that you consult an expert. While this list is not exhaustive, here are a few things that you would be wise to include:
- Deliverables: Thoroughly outline the scope of the job that needs completion, including the responsibilities of the freelancer. The freelancer must complete the project deliverables to receive payment.
- Payment: Outline how much the freelancer will be paid, how the payment will be remitted, and when the payment will be issued. You will also need to agree on how and when invoices will be submitted by the independent contractor.
- Deadlines: Ensure that due dates for each phase of the project’s completion are clearly stipulated.
- Confidentiality: Include a section that protects the company’s information that the freelancer may have access to. This, typically, forbids them from using client lists, corporate financial information, or company strategies for any purpose other than completing their assigned work.
- Ownership: It is important to define the ownership terms of the completed work, answering such questions as, “Will the freelancer receive credit for the work completed?” and “Can they use said project in their portfolio?”
Now that you are more fully versed in freelancers, independent contractors, and gig workers, you can hire outside traditional employment forms. Adding freelancers to your highly skilled workforce may prove a prudent choice, especially in a market experiencing a labour shortage. The gig economy is rapidly growing, and a vast crop of talent could be yours to work with.
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