Hiring freelancers allows businesses to access specialized global talent, complete short-term projects faster, and reduce hiring costs compared to full-time employees.
Hiring freelancers offers flexibility, cost-efficiency, and access to a global talent pool, making it an attractive option for businesses of all sizes. Unlike full-time employees , freelancers can be hired for short-term or specific projects. This agility allows businesses to respond to market demands, complete projects faster, and maintain operational efficiency without the overhead associated with permanent staff.
That said, the process of hiring freelancers isn’t always straightforward. Finding the right worker for the job, and then setting up procedures to onboard and pay them, can be challenging (and expensive). You’ll also have to be careful about avoiding misclassification risks .
This article covers how to hire self-employed staff, the advantages of hiring freelancers for your core business, the difference between freelancers and contractors, and the best websites to source freelancers for your a-la-carte business needs. We also answer some of the most frequently asked questions about hiring freelancers.
Companies hire freelancers to access specialized skills, reduce labor costs, complete short-term projects faster, and scale their workforce without hiring full-time employees.
Freelancing is on the rise globally. The World Bank estimates that freelancers make up 47% of the global workforce or roughly 1.57 billion people. The COVID-19 pandemic certainly helped catalyze this shift, though the so-called gig economy began much earlier.
For both companies and freelancers, the sheer growth in freelancing suggests that its advantages outweigh its drawbacks. Check out Remote's Global Freelancer Report below for insights on the benefits and challenges of freelance work.
Hiring freelancers helps companies reduce overhead costs, access niche expertise, complete projects quickly, and scale teams without long-term employment commitments.
Hiring freelancers offers the following benefits:
Freelancers make sense for projects with a defined scope that demand a level of expertise staff members might not have. Self-employed workers can also free up your employees’ time so they can complete more high-level tasks. Website development, graphic design, content writing, and media production jobs are commonly sourced from freelance talent.
The main disadvantages of hiring freelancers include limited availability, reduced management control, and the risk of inconsistent work quality or long-term commitment.
Freelancers aren’t employees, so managers who hire them need to remember that they aren’t their bosses. Like mercenaries in an army, freelancers are hired guns that come with an entirely different set of considerations than employees.
Relative to employees, freelancers have the following disadvantages:
Because freelancers typically have multiple clients, it’s best to avoid using them for long-term projects that require a vested interest in the company.
Freelancers and contractors are both independent workers hired for specific projects. However, freelancers typically handle smaller or short-term projects, while contractors may work on larger or longer engagements under formal contracts.
Freelancers and contractors are not “employed” by the company (i.e., staff), but they might still work alongside employees on projects to achieve company goals.
A freelancer is an independent contractor who usually performs smaller pieces of work (like a website, logo design, or blog articles) within a shorter time frame.
According to Zippia, 32% of freelancers in the US define themselves as independent contractors. There is no hard-and-fast rule as to when a freelancer “becomes” a contractor, per se. When it comes to the tax code, they are classed together.
Worker misclassification occurs when a company treats a worker as an independent contractor even though their role legally qualifies as an employee. Misclassification can result in fines, penalties, and back taxes.
Misclassification can lead to penalties , back taxes, and lawsuits, so make sure you aren’t falling into this camp. In New York, for instance, businesses are liable to pay $2,000 for every 10 days of unpaid worker’s compensation from misclassified contractors.
Similar fines and penalties can arise when contracting internationally. Solutions like Remote’s contractor management platform for hiring and paying freelancers globally allow businesses to hire and pay international contractors compliantly. Our team of global employment specialists has the local knowledge to make sure you aren’t misclassifying anyone on your team.
Freelance marketplaces help companies find skilled freelancers worldwide, manage contracts, and process payments securely. Popular platforms include Remote Talent, Upwork, Fiverr, and Toptal.
Freelance websites are the industry go-to for finding top freelance talent around the world. As many as 70% of all freelancers source the bulk of their client projects through these online platforms.
The following list of top freelance marketplaces includes a description of each platform along with its user base, common types of projects, and advantages and disadvantages.
Best for: High-growth companies that are looking to ramp up global hiring. Remote’s job board allows companies to post location-specific, geo-specific, or time-zone-specific contracts with pay ranges in any currency. Remote Talent streamlines the hiring process by helping you navigate the entire recruiting journey within a single platform — from posting job listings to hiring, managing, and paying employees.
Advantages: Current and transparent listing without ads, allows for team collaboration with full access to every job to view, edit, or delete job postings. Remote Talent also has remote-specific filters that help candidates see if the opportunity is a good fit before applying, leading to fewer irrelevant applications.
Disadvantages: ATS integration (in addition to Greenhouse) is in the works.
Best for: Companies that use multiple freelancers
A global platform with freelancers in fields ranging from web development to digital design, Upwork caters to both established businesses and newer startups. The platform is known for its global pool of talent and for maintaining transparency between contractors and employers.
Upwork handles contracting and payment on the platform itself, with 10% of each transaction charged to the freelancer and a $4.95 contract fee charged to clients on a per-contract basis.
Advantages: Time tracking; customer service
Disadvantages: Not all freelancers are vetted; limited dispute resolution
Best for: Smaller, finite projects
Getting its name from its low starting price point (creative tasks from $5 USD), Fiverr sets itself apart by offering a platform for businesses to source small-scale creative tasks with a quick turnaround. Think logo design, voiceover recordings, staff photoshoots, or company style guides. While this platform hosts a range of freelance skill sets, it skews toward creative and digital.
Fiverr charges a 5.5% service fee on all transactions, with an additional $2.50 small order fee for jobs under $75.
Advantages: No long-term contracts; low starting point for pricing ($5)
Disadvantages: Lack of dedicated account managers; marketplace freelancers aren’t vetted
Best for: Companies that want top-tier talent
Toptal positions itself as a freelancing platform with top-tier talent (“top talent” = Toptal). The platform targets larger enterprises as part of its client base and sources vetted, high-quality expertise through an extensive screening process.
The majority of Toptal freelancers fall within software development or digital design categories, with some expert writers, digital marketers, and even managers in the mix.
Toptal requires a $500 deposit to begin finding talent on the platform, and it charges clients based on hourly rates. Toptal is generally pricier than other freelance marketplaces.
Advantages: Highly vetted freelancers; candidate matching; time tracking
Disadvantages: Not advisable for short-term projects; few creative freelancers
Best for: International talent
Freelancer uses a competitive bidding system to match freelancers with jobs, making it suitable for both individuals and brands. Offering a wide spectrum of freelancers across various countries and industries, Freelancer is a great place to start for companies to see what’s possible with a freelancing strategy.
Freelancer charges a 10% fee on all hourly rates and 10% on all fixed-rate jobs (or a flat $5, whichever is greater).
Advantages: International talent; free support; custom milestones
Disadvantages: Limitations on dispute resolution; search feature can be hard to use
Best for: Hourly freelancers
PeoplePerHour connects businesses with international freelancers on a per-project or per-hour basis. Clients (businesses) can connect with freelancers in real time via the platform’s project management tool, payment gateway, and messaging system.
Freelancers in the marketplace cover a range of specialties, including content writing, voiceover recording, digital design, programming, business, and marketing.
PeoplePerHour receives service fees from freelancers (around 20%). There are also additional costs associated with posting urgent jobs or including NDAs.
Advantages: Easy-to-use platform; international talent; invoicing feature
Disadvantages: High cut of 15–30%; no customer service; no financial protection
Check out Remote's contractor management platform below to learn more about the best way to manage your contractors globally .
Here are the answers to some of the most commonly asked questions about hiring freelancers:
To hire a freelancer legally, businesses must classify workers correctly, create a written contract outlining the work scope and payment terms, and comply with local labor laws in the freelancer’s country.
Using freelancing platforms allows companies to hire freelancers compliantly. That said, these platforms take a percentage of each interaction to do so.
To enter into a legal working relationship with a freelancer, a company must:
Local laws vary depending on where the freelancer is located, where your business is located, and where the work will be performed. Remote’s contractor classification and compliance checklist can help you determine if your new hire should be classified as a contractor or an employee.
Freelancer hourly rates vary widely depending on skill level, industry, and location. Globally, freelancers average around $22–$24 per hour across industries.
Because there are freelancers for almost everything (and they exist virtually everywhere on Earth), their hourly rates vary greatly. Software engineers, for instance, average higher than data entry specialists, and freelance digital marketers based in Sweden will cost more than they do in Jakarta (usually).
On average, however, the hourly rate for freelancers is $22/hr for females and $24/hr for males across all specialty areas.
Freelancers charge a higher hourly rate than their full-time employed counterparts because they a) don’t receive benefits, b) are responsible for paying their own taxes , and c) don’t receive overtime pay despite working the same hours as employed workers.
Freelancers can be cheaper than employees for short-term projects because companies avoid costs like benefits, training, and long-term employment commitments.
For short-term projects, almost certainly yes because companies avoid the onboarding, training, and other up-front costs normally associated with new hires. Freelancers are responsible for their own equipment (computers, software, supplies) and office space as well.
Hourly employees might cost less than freelancers in terms of wages alone, but the cumulative value of their benefits (paid time off, sick leave, holiday pay, health insurance) might serve to tip the scales.
Yes. A contract protects both the company and the freelancer by clearly defining the scope of work, payment terms, intellectual property ownership, and project timeline.
Remote helps brands generate contracts that abide by local laws and compliance regulations.
Most businesses would agree: finding a freelancer to handle concrete tasks or projects not in your company’s wheelhouse makes for a good business move. While a freelancer’s hourly pay may be higher than the average employee’s, it can make more financial sense because the company doesn’t need to invest in training, day-to-day management, or benefits for that individual.
Managing a global team of remote freelancers, however, brings unique challenges. From misclassification risks to managing contractor payments compliantly and on time, having a solid system in place to streamline the process can help you stay on top of the moving parts. Remote’s global contractor management platform helps you save time on admin work by helping you onboard contractors, manage payments and invoices, and organize tax forms, in one place.
Hiring freelancers around the world becomes simple with Remote’s contractor management platform. Try Remote for free to start hiring, managing, and paying freelancers compliantly.