Why businesses turn to freelancers during a recession
Countries around the world are being dragged into recession, and companies are panicking and announcing huge layoffs and hiring freezes. Meanwhile, companies like Microsoft and Ford are halting their ads to try and save money.
A downturn in economic activity leads to a rise in unemployment rates as companies grapple with declining profits and rising debt. This leads to decreased consumer spending, which leads to businesses tightening their belts further.
But businesses can’t just stop hiring people altogether — especially after they’ve hit the panic button and laid off half of their marketing team. It turns out that someone still needs to write their content.
About 78% of business leaders said they are more likely to hire freelancers rather than full-time employees while economic conditions remain uncertain, according to a survey by freelance marketplace Fiverr International Ltd.
Here are some of the key reasons why this is the case, and why you might want to consider hiring freelance writers for your own business:
1. Freelancers can be hired on a project-by-project basis
One of the main reasons why businesses are hiring freelancers is because they’re flexible, and therefore less of a risk than permanent employees who need to be paid whether there’s any work for them to complete or not.
Hiring freelancers to work on clearly defined and budgeted projects means you can make sure that key projects within your business are completed, without worrying about having to find new work for them to do (and, more importantly, money to pay them) when things die down again.
While it’s unrealistic to expect that freelancers will drop all of their work to make space for you whenever you need work completed, building a positive relationship by providing thorough briefs, paying them adequately and on time, and treating them with respect increases the chances that they’ll be enthusiastic to jump on board the next time you have a new project that’s ready to go.
2. It takes less time to hire freelancers
It takes a long time to hire a new employee. According to a LinkedIn study, the average time to hire across a range of functions is 41 days.
If, at the end of all of this, you realise you’ve made a mistake and hired the wrong employee, this can be difficult to navigate. Firing someone is difficult, time-consuming, and upsetting for both sides.
Freelancers are used to quickly getting on board with new projects and providing value from the get-go. Hiring a freelancer with a fixed-term contract that ends at a set date is quicker, and less risky.
If things go well, you can ask if they’d like to re-sign their contract after their initial working period is up. And if they don’t, simply part ways at the end of the agreement.
3. You don’t need to pay freelancers extra benefits
Many businesses are put off hiring freelancers because their rates are typically significantly higher than employing people-full time. While this is often true, it is important to remember that hiring freelancers comes without additional costs such as paid vacation days and healthcare.
Depending on your agreement, you will only pay for the specific hours they work, or the specific projects they are working on. By stipulating an end date in your contract, you can stop paying as soon as the project is over.
4. Freelancers are constantly upskilling
Freelancers are constantly on the hunt for new clients. To stay ahead in their field and stand out to potential employers, they must be constantly developing their skills.
They’re also likely to be working on multiple different projects at any one time, which means they’ll be receiving feedback and learning new specialised skills which they can bring to your business.
As more and more people continue to ditch traditional office jobs in favour of freelancing, now is the perfect time to hire talented freelancers and contractors to upscale your business.
No matter which roles you’re looking to fill, the rise of remote working has made it easier than ever to find talent.
