Knowing When to Use Freelance or Temporary Contractors

by Sandra Smith

"There's no way I could do my job without outside help. Using freelancers has helped me get better, cheaper and faster results than using big agencies and even in-house staff. Contractors can be very focused and you don't have to worry about overhead. Freelance skills can bring fresh perspective to your team and allow you to get the work done in a way that lets you focus on higher-level tasks."
: -Barbara Khait, Director Marketing Communications, Lucent Technologies

Today's extremely competitive, global marketplace demands ever-faster responses from marketing professionals. Customers want immediate access to the information necessary to help them make decisions. Using contract employees allows marketing departments to operate with a more efficient and leaner staff, and frees in-house people to concentrate on higher priority issues and projects.

It's clear that trends are pointing to the ever-increasing use of contract employees on a just-in-time basis.

As of 1998, approximately 30 percent of the U.S. workforce were temporary workers.
Workplace analysts predict that by 2004 temporary workers will exceed 50 percent of the US workforce.
Currently, Manpower Incorporated, a temporary agency, is the largest private employer in the United States, and as of 1999, employs 2.1 million worldwide.

Questions to Consider before Determining What Type of Staffer to Add for New Projects

Permanent staff members often have assignments that won't allow them to take on more responsibilities. A simple analysis can help determine whether using an internal candidate, hiring a contractor or hiring a full-time employee makes the most sense.

Can a current employee meet project requirements?

If a permanent staff member wants the job, consider him seriously if his skill set is appropriate. If not, make him part of the project team. He could learn enough to handle a future project. Remember to consider the impact of removing already-assigned staff members from any current commitments.

What is the deadline?

While hiring a full-time employee might seem like the best way to handle a tight deadline there are many things to consider. First, check to determine if more headcount is budgeted. The hiring process itself is time-consuming. Will the hiring process take management's time away from the project at hand? Even if you jump the hurdle, find a viable candidate and get them on board quickly, is the learning curve too steep to meet a deadline? And, using an existing team member for training could eat into the team member's valuable contribution towards the project deadline.

If a new full-time permanent employee is hired to work on a special project, can his/her skills be used elsewhere?

Go the new-hire route if a new hire's skills can benefit the organization on subsequent projects or day-to-day activities, there's enough time to complete the hiring process, and if the budget permits.

Is the project high priority? Is it mission-critical?

If you have been handed a high priority, mission-critical project, an experienced contractor who already has the relevant background necessary to complete the project accurately and quickly might be the best solution to a short staffing issue.

Positive Reasons to Consider Hiring Independent Contractors

For projects with a distinct beginning, middle and end, there are several advantages to hiring a freelance contractor.

Save time and money. Find the person with the best skills and put them immediately to work. The only expense involved is the contractor's hourly or project fees. The independent contractor is responsible for his/her own insurance benefits, employment taxes, office space, supplies, and computer equipment. The freelancer also absorbs career development and training costs. You pay only for the work that is completed.

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