From remote work becoming a new normal to the gig economy taking a sudden boost, the contemporary world is revolutionizing at a pace not many imagined. For those who are not aware, the gig economy refers to a labor market for freelancers and short-term contract workers. In fact, if we look at the statistics, according to industry studies, the freelance market is increasing at a CAGR of 15% and is estimated to be worth $1.5 trillion.
A big reason behind this big boost to the gig economy is that even businesses have preferred to work with freelancers rather than hiring full-time workers. If we take a dig at the statistics, 85% of human resource managers have outsourced their freelancers. The very big reason is, every business has its on-season and off-season timings, so working with freelancers has given them the opportunity to save their money by getting freelancers rather than full-time employees.
Although businesses do not have formal authority over freelancers, it is still important for businesses to maintain good relationships with freelancers for the long-term mutual benefit of both parties. Hence, the role of human resources or HR enters the picture.
But keeping in mind that freelancers are independent and work on their own, managing freelancers is even more important for HRs. But now the question pops up, how exactly can HR manage freelancers in the most efficient ways possible? If you also have the same question in mind, you are at the right place because this is your all-inclusive guide to writing a reflection. So, let’s get started without further ado.
5 Extraordinary Ways HRs can Manage Freelancers Efficiently
Set clear expectations
One of the biggest benefits of freelancing is that freelancers always work on their own terms. This is the reason that expectations should be clear between both the stakeholders. If you as an HR want to retain your freelancers for a longer period of time, it is essential that you set the expectation very clearly right from the start.
You can set clear expectations for freelancers by creating a contract and outlining the scope of tasks they are expected to complete in a certain period of time. Alongside this, you should also give them clarity on their pay rate and terms, and any other requirements clearly beforehand. This will help to ensure that all parties are aware of the expectations and responsibilities before any work begins. Moreover, if any of the parties are not on the same page regarding certain agreements, then a healthy discussion can be carried forward. This would save you and the freelancers the trouble of ruining the professional relationship after the work gets done and a certain dispute arises.
Communication is key when it comes to freelancing. It’s important for businesses to keep their freelancers up to date on the latest information, so there is no confusion. Keeping communication lines open allows everyone to stay on the same page and make sure that the project goes as smoothly as possible.
For example, if a business has hired a freelancer to design a website, they should communicate updates to the freelancer to know when revisions are due and when they need to submit the final product. On behalf of the company, you are working for, it becomes your responsibility to ensure that communication updates are delivered to the freelancers. This would also help in building a strong relationship with the freelancers which will eventually benefit in managing them more efficiently and successfully attaining the SMART goals of the company.
Have frequent feedback sessions
Feedback sessions with freelancers are important for HRs to ensure that the freelancer is meeting the expectations set for them. It also allows HR to communicate openly and honestly about any issues or concerns that may affect the project and the freelancers work. Finally, it lets HR ensure that the freelancer has the support they need in order to complete the project.
Moreover, when freelancers are openly connecting and getting feedback on their progress, they would also feel belonging and are connected to the company which would motivate them and boost productivity. Alongside this, it would also help HR in managing the team of freelancers more effectively.
One of the reasons freelancers choose to do freelancing is that they have the freedom to work on their own terms. So, trying to manage your employees with micromanagement would be your biggest mistake. Micromanagement of freelancers can be counterproductive and demotivating. It can create an atmosphere of mistrust and resentment and can lead to decreased productivity.
On the other hand, micromanagement can also be time-consuming for HR since they need to constantly check in on the progress of the project. The better approach is to set clear expectations and provide feedback on outstanding tasks as needed. This flexibility would help you in maintaining a positive relationship with the freelancers which will help in increasing their retention rate.
Pay as per the market standards
It’s important for businesses to pay freelancers according to the market rates, so that freelancer can remain competitive and so that businesses are able to get the most value for their money. This benefits both the company and the freelancer, as the business is able to get high-quality work done at a competitive rate, and the freelancer is able to make a liveable wage. Furthermore, it helps build trust and ensure that the freelancer will continue to work with the business in the future.
Paying freelancers’ market rates benefits not only the freelancer and the business but also the industry itself. When businesses pay competitive rates, it helps to set the standard and ensure that freelancers are able to demand fair compensation for their work. This helps keep the competition honest and create a level playing field, encouraging businesses to continue seeking freelancers with the best skills and prices.
To encapsulate, there is no denying the fact that the freelancing industry is here to grow and it will only bring benefits to businesses if managed efficiently. Hence, it is essential for human resources to ensure that they work on maintaining healthy and stable relationships with freelancers. Moreover, the above-given guide will definitely help you in achieving better management of freelancers which will ultimately benefit the growth of the business.