What is Important for Corporations to Know about Managing Freelance Workers?

what-is-important-for-corporations-to-know-about-managing-freelance-workersManaging freelance workers creates unique challenges. Freelancers are much more mobile and autonomous than regular employees. However, it can be successfully accomplished through following the five tips below.

Freelancers are not Temps

Freelancer and temporary workers are totally different kinds of employees. Temporary workers, or temps, are typically hired through an external staffing company for a specific period of time. They are managed by their staffing company, which takes care of salaries and legal paperwork. Many temp workers perform basic tasks related to office or administration operations. For example, a few temp workers might be brought in to assist in the mail room during the holiday season.

On the other hand, freelancers are independent workers who are generally hired to work on advanced projects. This might include business consulting, graphic design and digital marketing. Freelancers must be provided with the right legal and employment paperwork regarding taxes and insurance. Keep in mind that the Department of Labor has very specific tax classification guidelines for freelancers. Independent contractors, or freelancers, will complete a 1099 form instead of a W-4.

The Freelance Community

Temp workers usually come and go between different staffing companies. They may be college students, the temporarily unemployed or working adults seeking a second part-time job. While temp workers come and go, freelancers are here to stay. That is, freelancers are professionals that have established working relationships within their industry of expertise. Therefore, they typically share information, resources and even informal standards. As a result, companies that treat freelancers poorly will quickly find themselves unable to hire. This can be avoided through maintaining equal hiring, treatment and payment standards for freelancers. Even though freelancers by nature are independent and are free to work for the competition, it is still important to cultivate a mutually beneficial work relationship.

Nurture the Work Relationship

According to the Harvard Business Review, there is a growing talent recruitment war in the business world and freelancers with specialized skills are caught in the middle. This can be difficult because the freelance relationship is different from regular employees. For example, freelance relationships are less hierarchical with more collaboration expected. Sometimes, companies merely view freelancers as a transactional relationship. However, freelancers must be treated equally and incorporated into the team. At the same time, their autonomy needs to be respected. The ideal result is that the freelancer and company develop a mutually beneficial professional relationship that encourages open dialogue and feedback.

Detailed Job Description

Regular employees typically have a page long job description that describes duties and responsibilities. Many companies mistakenly assume that informal agreements with freelancers are sufficient. However, both short- and long-term contractual projects with freelancers need a well-defined scope, detailed expectations and clear schedule. In addition to this, copyrights must be clearly explained in the contract. Keep in mind that while companies should maintain the majority of the copyright, independent freelancers will need samples of their work for their portfolio. Managing freelance workers can only be successful through being flexible when it comes to creative rights.

Set Boundaries

Similar to a job description, management and the freelancer should agree upon certain boundaries. First, work hours should be set that include the accepted time frame for responding to email. Second, deadlines must be set with flexible adjustment options. Third, fee guidelines should be set for long overdue deadlines. Fourth, communication methods should be established. This means that certain companies prefer email while others prefer project management software to communicate.

In short, freelancers make an excellent addition to any workforce. They can be properly managed through understanding the legal requirements, nature of the work relationship and exact expectations. Managing freelance workers can be mutually beneficial through establishing a respectful and professional work relationship.

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