How much can you save by hiring a Freelancer vs an employee?
Finding good employees is difficult in general.
There are lots of overheads for full-time employees. If you are a small agency and not confident of continuous work. Adding full-time employees can increase your risks.
Could you be saving money by hiring a freelancer?”
Then you have a project come in, which has a fixed length. Hiring a freelancer may look expensive in the short term whilst your paying them.
Once the project is complete, you can “fire” them as easily as you hired them.
Freelancers cost us more, but are lower risk.
Hiring the right freelancer. Allows you to hit the ground running, executing a project faster.
Depending on the region / country you operate in. Here are some of the overheads for employees to consider:
- Paid sick days
- Paid vacation
- Dental / Health plans
- Office rent
- Equipment (Computer, Desk, etc.)
- Cost of hiring employees
- Payroll / accounting / taxes costs for an employee
A freelancer may have a higher hourly rate in the short term. However over the longer term, using freelancers should save your company money.
Certain regions and countries may also limit the length of time a freelancer or contractor can be employed. Before they are considered a full-time employee.
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When hiring a Freelance PHP programmer, you can easily be inundated with choices on sites like Elance / ODesk and Freelancer. So if you need some help narrowing down the choices consider the following points:
- Price, do you really want the cheapest PHP programmer in the world? What value will that give you? Consider paying more for better quality work that is done right first time around and done in a timely manner.
- Experience / Portfolio / Ratings, do they have the right experience you are looking for with a portfolio to match and how are they rated online?
- Language, if you are both fluent in the same language, it will make communication so much easier
- Time Zone, consider how important it is that someone is available during your working hours, do you need to be able to easily get hold of them, when it’s convenient for you.
- Location and currency, makes it easy not having to deal with exchange rates and everyone will understand their tax obligations.
- Availability, linked to the time zone and other commitments, will this freelancer be working on your project 100% and will they be able to respond when you need them and will they will be available for support in the future if needed?
- Start small, test a new freelancer with a small project, to see how they complete it, if they are good you can always hire them again, this way you minimize your risks for a small investment.
- References, do they have references you can check with previous clients? A quick phone call now can reassure you and may save you a lot of potential headaches later.