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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