Skip to Main Content

Cost Benefits of Hiring Freelance

Cincinnati, OH | Posted: 10/19/2017 | Author: Stuart Koenig for Creatives On Call

Cost Benefits of Hiring Freelance

Businesses hiring more and more freelancers are seeing the benefits of this practice, especially from a financial perspective. Obtaining and retaining quality contract talent can save companies millions of dollars in the long run, with advances in technology making the home office more than viable. Let’s look at some of the major cost benefits of a gig economy for businesses.

Salary – The first and most obvious benefit of a freelance workforce is the money saved on salary payments. According to the Bureau of Labor Statistics, 70% of an employee’s salary goes to the wage itself, leaving 30% to account for benefits. As freelancers are technically self-employed, companies theoretically save 30% for each hire. Obviously that’s not a concrete correlation, and steps can be taken to use part of that 30% to incentivize other freelance benefits, but it’s a distinct savings that effects a financial bottom line.

Another salary aspect to consider is location. If you’re based in New York and are able to remotely hire contract workers in more affordable cost of living areas, they’ll cost you less in wages. You’re still paying a competitive salary based on location, but actually saving money when compared to hiring locally.

Space – Businesses large and small know that office space isn’t cheap. And an expanding workforce used to mean finding a bigger space, or new construction costs. But the gig economy means that expansion doesn’t have to be as unwieldy a process financially as before. Freelance hires save on real estate costs that can cripple the growth, and sometimes even existence of a company. Ancillary costs such as utilities and travel are also cut when remote employees are utilized. Saving space can also mean cashing in: IBM has sold 58 million feet of their office space since 1995, at a tidy $1 billion.

Hiring – Companies spend great resources in hiring full-time employees. Interviews, training and other expenses can add up, and even after the process of hiring it takes some time for the employee to ramp up to full speed. Hiring a freelancer negates this cost and process, as they have the skills to hit the ground running. This “plug-in” option for personnel means projects are completed quickly and competently, which benefits financially. Freelance utilization also saves on costly employee turnover rates, which starts the whole sordid process of hiring all over again.

Previous Blogs

How Food & Beverage Became the Top Selling CPG Category

While the world was stress baking, doom scrolling, and pantry hoarding, more than 20 million new CPG... read more


The Rise in the Direct-To-Customer Marketplace

Direct-to-consumer (DTC) commerce—the process of selling directly to the end consumer and cutting ... read more


Using ROI to Build the Perfect Budget

It’s every manager’s favorite time of the year—budgeting. Time to put down on paper (or spread... read more


Webinar: Using Improv to Improve your Writing and Presentation Skills

We're back with October's webinar! Meet Katie Garry, one of our favorite Creatives On Call Artists, ... read more


Webinar: Growing Your Business: Exploring CRM Systems with Hubspot

It's a new year, and Creative On Call's 'Artists As Experts' webinar series is BACK!... read more


Webinar: Setting Yourself Up for Success Virtually

We’ve all been there. Maybe you weren’t muted when you thought you were, your slides or video wo... read more


Webinar: How to Use Empathy to Build the Best Team for your Company

Some say empathy is a soft skill not necessary to create a positive work environment. I believe that... read more


10 Best Practices for Successful Onboarding

Each year in the US, more than 25% of the workforce experiences career transitions. Even with all ... read more


Webinar: Networking Intentionally During COVID-19

Meeting new people (and potential new clients) in today’s virtual environment is almost impossible... read more


Webinar: Using Tenets of Improv to Improve Your Writing and Presentation Skills

We're back with October's webinar! Meet Katie Garry, one of our favorite Creatives On Call Artists w... read more


View More Blogs