How Startups Can Leverage the Power of Outsourced Labor
One of the most difficult things about starting a business is creating a reliable employee base while still having enough money to put into business operations. Instead of spending too much overhead money in your new company by trying to establish a workforce of full-time employees, consider using freelance workers, a practice which is becoming more and more common. Read on to find three reasons that, as a startup business owner, hiring freelance workers is a great way to get your company off the ground without compromising your budget.
One of the biggest advantages for startup companies using freelance workers is that if supplies are backed up, sales are slow, or there are only a few small projects, there’s no need to retain a large employee base. Owners have the opportunity to contract workers only when they need them, and once that contract is up or the project is completed, they can allow the freelance workers to move on to other opportunities.
This also means that if you’re suddenly slammed with work or get a huge project, it’s completely viable to hire on multiple freelancers to meet the new demand, without having to worry about retaining that workforce after the project is finished.
Since temporary workers are contract-based, payment schedules are a lot more flexible than for traditional employees, which can be beneficial for both the workers and their employers. For instance, you can pay workers differently depending on their skills and the value of their input without having to worry about office politics.
Of course you should always be upfront about the way pay schedules will work when contracting with a freelance worker, and then make certain that you follow through to benefit both the worker and your company. If you’re contracting with someone who works outside of your country, consider using a reliable international money transfer service such as Ria Money Transfer, so that if you have to, for example, send money to India, your money is in good hands.
Low Associated Cost
As contract workers, freelancers don’t have the same requirements as full-time or part-time employees when it comes to benefits and other overhead costs. This is especially valuable for startup businesses that may not have the extra cash to provide health insurance and other benefits to their employees. As your business increases, it’ll be easier to provide those benefits, especially since you’re saving money by not providing them in the beginning.
In addition, vacation days and other time-off periods (besides national holidays) that reduce productivity and cash flow are not as large an issue with freelance workers, since they’re only contracted for specific periods or projects.
Freelance workers appreciate the flexibility and freedom they get from their jobs, and employers can use those people’s talents and unique employment status to further their enterprises, which is especially important for startup businesses. Help keep your costs low while still growing your business by properly utilizing freelance employees.