Exploring Remote Working: Hiring Freelancers, Benefits & Risks

Balancing between Remote and Hiring Freelancers

Image by Sepehr Ehsani

Remote is about doing a job remotely, i.e. not face to face, and one area that remote working has revolutionized is the hiring of freelancers. Since it has also revealed some of the challenges that come with hiring freelancers, I’d like to explore two commonly perceived shortcomings of hiring a freelancer and what having a well thought out remote staffing strategy can do to help mitigate these challenges.

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The internet has revolutionized work, meaning that a freelancer is now about to sit in front of his PC and serve multiple clients all around the world at the same time (by heather). This carries some risks though, as typically employers don’t like their employees to serve two masters –or worse, two competitors.

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I’m not saying that hiring freelancers is a bad thing – it isn’t. In fact, a lot of companies benefit from these free agent workers. dns database But, as with everything that has to do with the Remote Revolution, it is important to understand the differences and then use Remote in a way that is best for your company.

What else is great or risky about hiring remote freelancers? Look forward to comments.

Remote Staffing is a Solution to Traditional Temp Staffing Constraints (Part 2)

As I went over in my previous post, Temporary staffing continues to make sense… however there are holes in the model that until recently could not be filled.

As usual with this blog, you’ll see that the answer I am suggesting as a solution to human resources challenges remains the same: Remote.

In this case, I’m focused more on Remote Staffing vs. freelancers / working-from-home models of Remote.

 

Remote Staffing is interesting, because the Remote workers (unlike with freelancers or work-from-home professionals) should really be sitting inside the Remote Staffing agency’s own office,

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located at globally strategic locations. A Remote Staffing company provides all of the benefits of traditional temporary staffing that I mentioned in Part 1, but, in addition it also helps to address some of the limitations of a model primarily based on physical employee interaction. Here is how Remote Staffing addresses some of the gaps found in traditional temp staffing models:

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  1. Remote Staffing has no location constraints: Remote Staffing knows no location, and enables companies to have access to a wide, deep and vast global talent pool. A high quality remote staffing provider will not only source a talented person who is right for the job, but they will also ensure that that person works standard company hours and is equipped with all of the infrastructure they need so that they and their employer can focus on what matters: the work itself.
  2. Remote Staffing Cost Savings are significant: While Temporary workers, regardless of whether they are Remote or face-to-face, represent a way for a company to save money, hiring a temporary worker within a Remote model enables significant cost savings due to the power of global labor arbitrage – which is a phenomenon in which jobs move to nations where labor and the cost of doing business is lower than that in developed nations such as the United States, Australia or Europe (among others).
  3. Remote Staffing takes care of office space as well as the people: One of the significant advantages of hiring Remote temporary staff is that a provider provides all of the infrastructure needed to ensure that person has an office “home” on a daily basis. Their seat, desk, PC and all the standard facilities of a modern office are suddenly available to a company as if it was an extension of their own office (by heather). Let’s face it – these days, it’s not that big of a difference to have your employees sit 10 feet away or 10,000 miles away from each other… they’re still going to send emails to their colleague and they’re still going to chat with that person over Skype/MSN messenger.

 

As a final note, Remote Staffing shouldn’t be employed for every type of role in an organization. Some roles are better suited to a Remote model, while others are better suited for a physical, or, traditional employment set-up (think: Remote Janitor?). A company should examine which roles make sense to fill remote, and maximize the channel; by doing so, they’ll see significant cost savings as well as open their doors to new talent sources and hiring possibilities.

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Remote Staffing is a Solution to Traditional Temp Staffing Constraints (Part 1)

As you can tell from my posts so far, I am making a big deal about the differences between “work-from-home”, “freelancers” and “Remote” as a whole… but why are we talking about Remote hiring in the first place? It’s because businesses are already leveraging large scale contingent workforces, and Remote offers up another way to build on a model that’s value is already proven out.

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So, what I haven’t focused on yet is why hiring temporary workers makes sense in the first place, and how leveraging Remote can help to address some of the challenges that comes from hiring and maintaining your contingent workforce.

This blog is built for managers and business leaders who are looking for different kinds of solutions to solving talent challenges, so in this post I’m going to first explore the benefits and challenges of traditional Temp Staffing itself. In my next post, I’ll then follow up these points by talking about some ways in which going with a Remote Staffing agency can make a lot of sense. (I’d like to first give a chance for some comments on how you all think Remote can solve some of the issues I’ve pointed out below.)

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  1. Decreased time-to-hire: Staffing agencies often keep what they call an “active pool” of qualified, screened and ready-to-be-deployed candidates to meet sudden demands. These sudden hiring needs could be things like illness of an employee, long-term sabbaticals or vacations, sudden resignation of a key role, maternity/paternity leave, among other areas. All of the employee-related issues that can happen in normal day to day operations of a company can be mitigated by having access to qualified, temporary professionals.
  1. Staffing temporary projects in real-time and with flexibility: Temporary projects, especially in specific industries like Information Technology, are becoming the norm versus the exception. These can be ramp-ups towards special product launches, seasonal and peak period staffing, or simply a sudden need for large numbers of employees that, if they were to go through the standard hiring process, would cause significant delays in the company’s ability to deliver to customers.
  1. Cut total cost of employment: Hiring an employee is not cheap. Advertising, recruitment, screening, background checks, behavioral interviews, skill checks – all of these take time and money. And it’s not only the hiring process that incurs cost, there are significant costs involved with any full-time employee that are absorbed by the staffing agency, such as payroll expenses, paperwork, employee benefits, taxes, insurance, unemployment, retirement, paid time off, and other HR related support functions like training and continuous development.
  1. Evaluating prospective full-time hires: Hiring a full-time employee for a key role is a risk. Even with an employee with a strong track record, there is no guarantee that past performance is an indication of future success in a given role. This is when employers utilize a “contract-to-hire” or a “temp-to-hire” model. domain names . In this type of an arrangement, an employer can have a period of time in which the employee is a temporary worker and has a chance to prove themselves in a role before being absorbed as a full-time employee.
  1. Accessing specialization and experience: The pool of temporary workers is now one that is full of highly skilled professionals who work on a temporary basis by choice and have functional or industry specializations. By hiring temporary workers who have experience and knowledge, a company can gain instant access to skillsets that would take years to groom and train.

 

Even though temporary staffing continues to grow, with some data suggesting that half of the workforce in the United States will be temporary in the not so distant future, there continues to be challenges and restrictions to the traditional temporary staffing model, namely:

  1. Location Constraints: A company’s location may not enable them to access a side/deep talent pool. Traditional temp staffing is local, and no matter how great the staffing firm is, if the right skilled person does not exist in that locale, the firm will have a hard time filling that role.
  2. Negligible Cost Savings: While overall cost to employ a temporary worker is generally less over time, sometimes the difference between hiring a full-time worker and a temporary worker is not significant enough to go the temporary route based on cost alone.
  3. Office Space Constraints: Even though the workforce may be temporary, the seats, desks, PCs and facilities needed to house them is often not and there are costs involved, especially for large scale temporary projects. All of these non-employee related expenses incur cost and add to the overall cost to hire and maintain temporary staff in the workforce mix.

In my next post, I’ll take a look at how Remote Staffing can be a solution to some of these constraints/challenges. Initial comments or thoughts welcome on how Remote can solve some of the issues with traditional temp staffing.