Best Practices for Employing Freelancers

When the workload piles up, an unexpected project comes along, or an assignment requires a specialized skill set, it's often smart to hire a freelancer.  But working well with a freelancer is itself a skill - one that good managers can readily master. 

How can managers be sure they are using independent contractors - freelancers, consultants, temporary employees, sole proprietors, and others - wisely, for maximum return on their investment? 

One key is to recognize how a freelancer´s motivations and concerns differ from those of salaried employees.  A recent Freelancers Union poll indicated that independent workers feel they lack control over such fundamentals as compensation, job requirements, and work hours - all areas in which staff workers receive protection from the law.

A motivated worker whose basic needs are fulfilled is more likely to be a productive worker.  So, Freelancers Union has developed these "seven best practices" for employers who want freelance arrangements that truly add value:

1. Be clear in contracts about terms, deadlines, and project scope.   Many poll respondents reported that clients had enlarged the scope and magnitude of projects mid-way through. Often, significantly more work was required - for no additional compensation. 
2. Provide easy access to the essentials.  Freelancers need to access the staff, information and equipment it takes to complete your project.  They won´t know where to find things as readily as your staff people.  When hiring a new freelancer, assign a knowledgeable contact person, facilitate introductions to key staff members, and provide all relevant background information. 
3. Give proper credit for work done.  Many respondents reported that clients used their work without permission, or unfairly took credit for work they did. Freelancers are also unhappy - and may have legal recourse - when a potential client uses ideas from their project proposal without hiring or in some way compensating them. 
4. Provide a safe work environment free from harassment and discrimination.  Staff employees enjoy legal protection from unsafe work conditions, harassment, and discrimination. Independent workers do not.  One respondent, sexually harassed while working on a project, was ignored by her clients when she reported it.  Freelancers deserve the same respect granted to permanent employees.
5. Pay at the market rate.  Don´t forget that freelancers have overhead costs just as businesses do.  In addition to paying for their own health insurance and retirement plans, freelancers have higher tax burdens than traditional employees. Many provide their own office space and equipment. 
6. Respect their time and pay them for it.  Freelancers frequently turn down other work when you assign them a project.  If your project gets canceled at the last minute, the freelancer suffers a double income loss: the revenue your work would have generated, and the income from the client they turned down.  Permanent employees can get unemployment insurance; most independent workers do not.            
7. Pay the agreed-upon amount in a timely fashion.  It took many respondents several months to receive payment from their clients, and they often were paid less than the amount originally agreed to. Others were only paid after repeated phone calls to the client. Some were never paid at all. 

Working with independent contractors often makes good business sense.  Freelancers bring useful knowledge, expertise and experience to the table.  By hiring them for specific projects or time periods, companies can manage workload fluctuations more adeptly and flexibly.  By following these guidelines, companies can attract the best talent, treat people fairly and move the enterprise forward.

Freelancers Union is part of WORKING TODAY, a 501(c)(3) non-profit organization to address the needs of America's growing independent workforce through advocacy, information and service. Founded in 1995 by Sara Horowitz, a MacArthur "Genius" Award recipient, the group addresses the needs and concerns of freelancers, consultants, independent contractors, temps, part-timers, contingent employees and the self-employed, who collectively make up about 30% of the nation's workforce. For more information, visit www.freelancersunion.org.