A lot of small businesses vary in how they function; operations, growth, comfort level with a non-employee resource such as a freelancer (an important factor), etc. Below you fill find an outline, including a neat graphic, on the difference between hiring employees or freelancers.
Employees
When to Consider an Employee:
- a role which is important to the long-term health of the business (finance, customer service, etc.)
- demands high understanding of product/service/technology of company
- looking to build cohesive team
Pros:
- get familiar and personal with business, which helps in understanding day-to-day activities
- can cover other roles when colleagues are on vacation, sick, etc.
- potential to build a close-knit team for improved chemistry
Cons:
- can be quiet costly: time, training, salary (depending on experience/role), benefits, etc. (this is from an operational point of view for small business - employees should always be provided with adequate training & benefits!)
- potential of leaving (after all the investment into their development)
Freelancers
When to Consider a Freelancer:
- time sensitive projects
- high expertise (such as specialized web coding)
- work overload for current team
Pros:
- majority of freelancers can do work remotely (depending on nature of work)
- cost effective option (once project is complete, they are no longer part of the payroll)
- no need for extensive training or development
Cons:
- no team chemistry, and no direct "management" of work if done remotely
- projects can sometimes be late if freelancer is taken up with a lot of clients simultaneously
- lack of familiarity with business
Clearly each of these benefits/cons can go either way depending on the type of small business is in question: some owners/managers may be very comfortable with outsourcing work, while others prefer to keep everything in house. Some freelancers may be very costly (high expertise) compared to hiring an employee who can be trained to do the same, etc.
