Should We Pay Freelance Workers Based on Projects or Hours?

First published: June 17, 2022 @ 6:00 pm

The issue of pay for freelance workers has been around for quite some time. It is a complex issue that has many facets to it. 

It involves many aspects, from the employees’ and employers’ perspectives, such as compensation, taxes, benefits, productivity, and other elements.

How Employers See Freelancers

Most employers have been treating their freelancers as independent contractors rather than employees. For them, the costs of having employees are just too high. Freelancers can easily and quickly produce good quality work, which saves employers money and time. 

Also, employers do not have to deal with issues such as minimum wage, employee benefits, payroll taxes, and other labor-related issues. 

The most important thing for them is that they get their work done fast and on time without having to worry about the paperwork involved in having employees.

In addition, most employers don’t like the struggle of dealing with the paperwork involved in having employees. With freelancers, they do not have to worry about keeping track of their employees’ hours, attendance, sick days, or vacations. 

Employers can simply give the instructions and their freelancers will get the work done. This is a tremendous advantage for employers who need to focus on their core business rather than having to deal with employee-related issues.

Photo by Bonnie Kittle on Unsplash.

Hour-Based or Project-Based: The Controversy

Many employers use a hybrid model where they hire freelancers on a project basis while paying them by the hour. 

They base their payment on the total number of hours the freelancer works. This is a brilliant method for freelancers, as it allows them to get paid more for simple projects.

However, some employers are unhappy with this model. They feel that they are being cheated by how freelancers are paid. They believe that freelancers should be paid based on the number of hours that they work on a project, not on the total number of hours that they work for the employer.

Then, which one is the right choice? This is the debate that many employers and freelancers have been having for years. The bottom line is that both models have their pros and cons. 

However, the best choice is usually determined by the work being done. For example, if they are doing a project-based job that requires many hours of work in a short period, then you will pay based on the total project completed. 

If they are doing a job that takes a long time to complete, then you will pay based on the total number of hours worked on the project.

Employers need to make sure that they are paying the right amount for the work done. It is always best to get an agreement from the freelancer in writing before they work on a project. 

The key is to make sure that you are being fair with the freelancer and that you are treating them as a partner rather than a contractor you can dismiss anytime.

Will Hiring Freelancers Benefit Your Business?

Many businesses have found that hiring freelancers has been a great way to save money and time. This is because they do not have to worry about dealing with the cost of employees. 

They can focus on their core business and the tasks that they need to complete. This can help them grow their business, increase profits, and improve their productivity.

However, this doesn’t mean that hiring freelancers is easy. There are many things that you need to keep in mind when you hire freelancers. The following are some of the key points:

Photo by Corinne Kutz on Unsplash.

Choose Your Freelancers Carefully

The first thing that you need to do is make sure that you choose your freelancers carefully. You want to make sure that they are good at what they do, reliable, and skilled at producing quality work for your company. 

Also, you need to make sure that you hire freelancers who are experienced in your industry or niche so that they can easily produce high-quality work for your company’s needs.

Consider the Risks

When you hire freelancers, you are also taking on the risk of wasting time. If they are not good at what they do, then you will have to pay them for the time and work that they have done. This can be an enormous risk for you if the freelancer is not skilled enough.

On the other hand, if they are skilled enough, then you can easily keep your costs low by hiring them on a project basis rather than hourly. You will also be able to get quality work at an affordable price.

Create a Budget

The next thing that you need to do is create a budget before you hire freelancers. This will help you decide how much money you want to spend on hiring freelancers. 

You need to consider the number of hours that you will need and the quality of work that they will produce. Then, based on these factors, you can create a budget that works for your business needs.

Make Sure That You Use Time Tracking Software

You also need to make sure that you use time tracking software to ensure that you are getting the most out of your freelancers. The best time tracking software will help you track the hours that your freelancers have worked for your company. 

This will allow you to keep track of their performance and determine if they are doing a good job.

It is also important for you to know how much time they have spent on each project. This will help you calculate the number of hours that they have worked for your company, which will give you an idea of how much money they have earned for your business. 

You can then take this information and compare it with what they have been paid so far so that you can get a clear picture of whether they are being paid fairly.

Freelancers Can Benefit You If You Know How to Use Them

There are many ways that you can handle the issue of paying freelancers. The key is to make sure that you clearly understand the different ways that you can pay for them. Also, you need to make sure that you use time tracking software to make sure that you are getting the most out of your freelancers.

If you would like to learn more about how your business can benefit from hiring freelancers, read articles on WorkDeputy.