Speak to me of freelance vs full-time from a hiring perspective...

nadyne's profile thumbnail
Depending on the company, there are many reasons to prefer in-house versus contractor. Contractors and FTEs are budgeted differently. In many companies, budgets for FTEs are more likely to be stable/growing. Legally in the US, companies have to treat contractors differently than FTEs. They can’t effectively be FTEs lest the company run afoul of employment law. Most companies that use contractors have internal rules about how to maintain the separation between contractor and FTE. If there’s been some kind of breach about that, companies often clamp down on their usage of contractors while they ensure that they are treating contractors appropriately according to current employment law.If the company is in a highly-regulated industry like healthcare or finances, there might be additional legal and regulatory concerns about contractors vs FTEs. I’ve worked for companies that only allowed the use of approved vendors. Getting a new company added to the list of approved vendors is a multi-month odyssey, if it’s possible at all. For a single freelancer or a short-term need, the ROI on this effort is unlikely to be enough to justify it.
liztalago's profile thumbnail
That makes sense, and I can see the pros/cons of both. As a seasoned consultant, I've had to be very careful of scope creep that can lead to me getting treated like an in-house employee (with none of the benefits). Lately, I'm just seeing a change mid-course that surprises me. It tends to be a mid-level hiring manager who begins a conversation with a potential contractor only to what appears to me to be a sudden shift toward wanting an in-house person. It's most likely an internal communication snag that the contractor is not privy to.
pamelajenewein's profile thumbnail
@liztalago and to @nadyne: I would love to see an actual (today's rates) employee (Freelancer vs Full time hire) cost break down, with and without perks.
liztalago's profile thumbnail
Excellent point! Rates aside, I tend to fill a PT/contract role for startups or new organizations that don't yet have the budget for a FT person but who need support making critical early decisions around strategy and growth. So it's not really apples to apples for me since the void I (and many of my clients) fill couldn't yet be filled by a FT person.