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Should Your Company Utilize a Contract Worker or a Freelancer?

In a challenging technology job market for employers, companies sometimes struggle to make a permanent hire. As such, businesses increasingly turn to the gig economy by hiring a contractor or freelancer on a temporary basis. In addition to filling a critical need, this approach also provides organizations with a measure of staffing flexibility.

However, contract workers and freelancers, while similar, are effectively two separate staffing concepts. So let’s look more closely at both to help you determine which provides the best option for your business. In the end, you want the talent you need in the most cost-effective manner.

Wondering if You Should Hire a Freelancer or Contract Worker?

Freelancers Provide The Skills You Need For Short-Term Projects

Freelance workers typically are self-employed, with their own workspace and computing equipment. They generally set their own rates and work with a variety of clients. This makes them a valid option when you need an influx of IT talent on a short-term project. Depending on their specific experience and background, they might be perfect for closing a critical skills gap.

With remote working commonplace, your business enjoys a wide candidate pool of potential freelancers. They tend to work alone from their home office. Since they effectively serve as a business owner, expect a high level of service and quality. You pay them using 1099, with the freelancer responsible for their own taxes.

Independent Contractors Offer Businesses Staffing Flexibility

Hiring a contract worker makes sense for a wider variety of scenarios compared to a freelancer. However, they also provide significant value on a short-term project, in a similar manner as freelancers. Your business typically works with a tech staffing agency, like Technology Partners, to source contractors. They remain a great option for project work (short-term and long-term) as well as in a staff augmentation role.

Note that some independent contractors work for themselves, essentially as a freelancer. In fact, many think the two terms are interchangeable, but for the purposes of this article, we consider them to be separate.

An independent contractor’s employment status influences how your company handles their billing and taxes. You need to determine their status before onboarding them, as it affects their pay rate and tax considerations. For example, some contractors receive a W2 from their staffing agency. Keep these issues in mind, as well as any local employment laws, before adding them to your team.

Ready to Work with Technology Partners to Find Talent?

If your company needs an IT contractor for a critical project, connect with the team at Technology Partners. As one of the top technical staffing agencies in the Midwest, we provide the talented professionals to help your business thrive. Schedule a meeting with us to discuss your specific project needs.

We can help you gain the flexibility you desire in your career. See our current opportunities.

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