Uber Judgement: The Implications for Companies Hiring Freelancers

The Implications for Companies Hiring Freelancers

The modern day recruitment process has changed, not the least of which is the improved outlook of companies towards hiring freelancers. Compared to the traditional way of only hiring people to work in-house, having freelancers on aboard is now regarded beneficial – not just due to the massive cost reduction (mainly in terms of specialized infrastructure, training costs, and technology).

Companies which aim to hire full time employees may need to connect with agencies in order to manage the required manpower, scrutinize potential candidates, and interview and select them; as well as to complete other formalities that are at par for the course in this process. Some legal contracts are also involved here as well, unlike when a company recruits freelancers.

At the same time though, the lack of processes does not mean a freelancer is not authorised or holds lower credibility. For, an organization can enter into a contract with freelancer and keep things transparent – on either side – and work quite well together.

There are tax holiday nations, which have no taxation policy for people: And recruiters can target these nations to hire the best freelancers for all kinds of work that available within the company.

A few further implications of hiring freelancers, which recruiters should consider, are listed below:

Global Access to Talent

Companies involved in current-time recruitment processes can focus on picking global-level talent that is perfect for their particular business processes and operations. This global access consequently helps them find the best people, even if the cost of such services is higher than in the past. However, the skills of the talent (i.e., freelancer) will often be compensation enough with this initial set-up cost and payment. And this price is still much lesser than what it would have been if the talent was working full-time and with the actual company’s office and resources. Additionally, if companies manage small set-ups – especially virtually – in few nations, it will further allow them to have a global presence without needing to show up in the actual location.

Every process in a company gives rise to a specific requirement for a skilled talent, which you may or may not find around in a local search for a full-time position. However, when the option of hiring freelancers is considered, you are much surer to find a suitable person that will be qualified, experienced, and skilled enough.

High-Scale Productivity with Freelancers

There are many mid-level and small-level companies who have plenty of work in hand. But the required infrastructure, space, and systems to recruit in-house people are often a challenge. In such cases, these companies need ample production resources at a cost-effective value, without compromising on the quality of work. And, this can be done by hiring a freelancer: This kind of remote hiring process can help deliver bulk quantities of work at less cost and without overhead infrastructure. And this in turn will help the small-scale company stay and flourish in the market; and it may even compete at par with its larger competitors this way.

 Low Infrastructure & Production Cost

When companies recruit freelancers, they understand that it will reap no extra infrastructure cost, set-up cost, training cost, or maintenance cost. These usually make up part of the CTC (cost to the company) for any full-time employee. Whereas, when companies hire freelancers, the contract is on the basis of the prevalent infrastructure and for available resources, including the maintenance. For, freelance hires often use their own equipment as well.

(However, companies must also have be prompt in payments and milestone reviews during the term of the contract in order to enable optimal level of work-quality.)

 Experience & Technical Training

A major cost of most companies is in training their talents for any business process they’ve been hired for. Plus, every resource is unique and demands special attention, especially when they are learning new skills. Big employers and organizations have separate training units especially for this purpose. And technical training is quite expensive as it requires a special workforce to handle such operations. This is one area where major funds are utilized.

However, most of these costs are either cut down extensively or even completely if a company is hiring freelancers!

Experienced freelancers mostly operate virtually, with no workplace. This style of remote working is trending due to the advancements of technological applications. Ease of communicate has additionally reduced the old barriers for hiring freelancers, and has thus opened up new doors for worldwide manpower resources.


When companies hire freelancers, they get valid and current information about them from industry honchos or through online sources. The background verification and skill-set can be checked through provided sources or separately. Testimonials and recommendations from industries and customers certainly help as well, especially when it comes from a known person. Plus, freelancers can often start working immediately after the basic formalities, unlike a sourced candidate from another company since they do not need to serve a notice period.

The freelance community and workforce is thus growing rapidly, which has facilitated businesses in hiring, and also in considering their present and future business strategies. With the use of collaborative and smart technology, the hiring of freelancers has enabled companies to redefine the workplace by making it equally effective with remote talent alongside full-time employees.



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