Do you want to hire freelancers? Then know what risks there are and what obligations you have as a principal. In this blog we tell you everything you need to know when you hire a freelancer.
Let’s start with the disadvantages, so we have said it all ;-). Then we will discuss the advantages and finally we will tell you about your obligations when you hire freelancer.
The disadvantages of hiring freelancers
Freelancers have little experience
If you offer an open shift on a freelance platform, you can accurately describe the job requirements. Do you want someone with extensive experience? Then indicate that. An inexperienced freelancer will not respond quickly.
Some platforms work with reviews, like YoungOnes. After each assignment, a freelancer is reviewed by his client and vice versa. Base your choice on the profiles of the applicants and the reviews they have received. Be aware that freelancers also evaluate their clients.
Freelancers are expensive
Fair is fair: the average hourly rate of a freelancer is higher than that of a permanent employee. But… you only pay a freelancer when you need him. So at peak moments, sickness or leave of your permanent team. If he himself falls ill or goes on holiday, it will cost you nothing at all. Of course, it will cost you a lot more money if you have to close your doors due to staff shortages.
Take a YoungOnes freelancer: as a client you pay his hourly wage plus €3.50 per hour for using the YoungOnes platform. But no work means no payment. You pay no registration fees, no taxes, insurances or other costs. You receive a weekly invoice of all the hours worked by YoungOnes. YoungOnes pays the freelancer.
Freelancers often don’t show up
Of course it is a bummer when you book someone and they don’t show up. If you book through YoungOnes, you can see the attendance rate for each freelancer. You can also set a cancellation period. This applies to both parties. If someone does not show up, there will be financial consequences. Does a freelancer cancel within the cancellation period? Then he or she must arrange replacement or, in extreme cases, pay a deposit.
Freelancers have no connection to your company
Young people have little connection with the company they work for. Even employees who are on your payroll change employer quickly. That is the time in which we live. Do you have a happy team and do you offer a fine workplace? Then everyone will really want to come and work for you. So you also control it a little bit yourself. The experience shows that a freelancer likes to come back more often if he has had a nice assignment. Invest in a good working atmosphere and build a flexible shell with permanent freelancers. This gives you and your employees peace of mind and confidence.
Freelancers mean false self-employment
Artificial self-employment and false constructions. There is a lot written about this in the media and politics. And as an entrepreneur you would rather not have to deal with this. It is possible that the tax authorities judge that there is an employer-employee relationship after all. You can then be summoned to pay social security contributions, continue to pay wages in the event of illness and that dismissal rules will apply. And that is exactly what you do not want. Here you can read how the Tax and Customs Administration arrives at its verdict.
Choose for freelancers at a platform where no disguised temporary workers or contract workers are hired and where they work with a model agreement. For the Tax and Customs Administration, you are a freelancer if you have freedom of choice to respond to assignments, can negotiate about your rate and take care of your own debtor risk.
Ok, so far the disadvantages. Are there any advantages? There certainly are! Read them below.
The advantages of hiring freelancers
Freelancers means no contractual obligations
If you hire freelancers, you work – if all goes well – with a model agreement and not with a contract. Because of this, you do not have obligations like continued payment in case of illness, payment of holiday allowance and insurances. You only pay for the hours you work. So if you have no work, you do not have to pay. This is very useful if you want to be able to scale up or down quickly and if your company is very busy.
Freelancers can be used everywhere
If you hire a freelancer through a platform, you benefit from a nationwide reach. This is useful, for example, if you have a hospitality or retail company with multiple offices in the country. Whether your company is located in the southernmost tip of Limburg or in the Randstad, on the platform you will always find freelancers for your region.
Scheduling freelancers makes you flexible
In a number of sectors, such as the hospitality and retail industry, it is often rush or stand still. In addition, many companies in various sectors have had to lay off their staff or let them go due to the corona pandemic. Only some of them returned to their familiar industry. Partly because of the great uncertainty about the future, companies are opting more often for a smaller permanent team and a larger flexible shell.
Freelancers keep your fixed wage costs down
With a team of ‘permanent’ on-call workers, scaling up and down is much easier and the labour costs remain manageable. By using freelancers, the average hourly wage goes up, but your turnover increases proportionally on those days. And vice versa, in a quiet period, you have less turnover but also less labor costs.
Freelancers save you time
We need to explain this. The L1NDA platform recently offered a handy new tool. While making your schedule, you can offer the indefinite shifts directly to freelance platform YoungOnes. Freelancers apply for your shift(s), you select the best applicant and schedule him/her. You do this in a few clicks and all at one spot. that is easy and saves a lot of time. With the recently realised integration with YoungOnes you can offer all your shifts to YoungOnes freelancers free of charge. You only pay the hourly wage plus € 3,50 per hour worked.
As client you must inform the freelancer of all the ins and outs of the shift. You have to pass on the exact date, time and place in time. If you change this in the meantime, the freelancer can cancel because it is no longer convenient for him or her.
You can always change your mind, but keep in mind that the freelance platform itself has set a cancellation period. This applies not only to the freelancer, but also to you. This means that if you change the service or let it lapse, you still have to make a (partial) payment.
After the shift, the freelancer will tell you the hours he worked. You have to approve or reject these. Do not wait with this, since the invoicing will only start after your approval. Make sure you pay the invoice of the freelance platform in time, so the freelancer receives his money quickly.
We have told you everything you need to know when hiring a freelancer. Want to know more about hiring freelancers?
Read here how easily you can hire and schedule YoungOnes freelancers in your L1NDA planning tool.