Why Do Freelancers Get Paid More?

do freelancers get paid more

Freelancers are usually self-employed or employed by their own Ltd company; working on several jobs for multiple clients at one given time. Sometimes, contracts limit who else the freelancer can work with for a certain amount of time.

When freelancers work in-house, they never know how clients and colleagues in the company will react.

Sometimes freelancers encounter employees frowning with frustration and being difficult. Maybe, this is because they feel they can do the job the freelancer is brought in to do. Maybe the employees haven’t had the opportunity due to a busy workload or other reasons.

Other times, employees and clients want to make the most of you in their office and ask question after question. Bringing in freelancers to the office is a great way to upskill permanent workers.

Shall I work on an hourly rate, daily rate, or per-project basis? A freelancer has a lot of freedom and flexibility compared to those employed permanently. Freelance work is usually on a short-term basis; covering staff shortages or providing a niche skill.

For a lot of freelancers, working on a short-term basis is a dream, because office politics can be ignored.

Some freelancers get subcontracted by agencies, other freelancers find the companies to freelance for via online platforms such as Upwork or Fiverr. Cold calling and searching through google are other ways to find clients.

Some of the most common freelance jobs are within creative industries such as graphic/website design, copywriting and website development. However, freelancers can work in almost any service-based industry, such as proofreading, consulting or hospitality.

There are many reasons why Freelancers get paid more than full-time employees, here will we discuss a few:

Should we hire freelancers instead of employees?

Company culture is very important, and having a diverse team of talented people who work well together is key to every business. Many positions in the business world require workers full-time to fulfil daily duties.

Full-time employees are the only people who know the company’s full history. Being able to navigate the company’s local server is invaluable.

If there is an employee that’s swamped with work and has too much on their plate, sometimes bringing in freelancers to help with the workload and ultimately make the employee’s life better is the best option.

Many freelancers are used during seasonal campaigns and specific times of the year such as Christmas, Easter and Summer.

Why are freelancers cheaper?

For one, freelancers get paid more per hour than employees do. This is because freelancers are typically paid by the project, so they have a vested interest in completing the project as quickly and efficiently as possible. In addition, freelancers don’t have the same overhead costs as businesses do. They don’t have to pay for office space, equipment, or benefits like health insurance.

As a result, freelancers can often offer their services at a lower rate than businesses can. Finally, freelancers don’t usually require long-term contracts. This means that businesses can save money by hiring freelancers on an as-needed basis rather than having to commit to a long-term relationship.

Freelancers work harder than full-time employees

Freelancers often get a bad rap. People assume that because we work from home, we must be slacking off all day. But the truth is, that freelancers often work harder than full-time employees. Freelancers don’t have the luxury of punching a clock and calling it a day relying on that one company. They have to be constantly hustling to find new clients and projects. And even when they do land a gig, they often have to put in long hours to meet deadlines

Essential equipment, tools and software are provided by the freelancer

If you hire a freelance designer, photographer or videographer, they’ll often bring thousands of pounds/dollars worth of equipment with them… And thats not including all the software and subscriptions. Freelancers are also filled with years of knowledge and experience in a certain niche.

Hiring someone full time, and then forking out the money for the equipment isn’t always feasible. Especially when everyone is surviving through a cost of living crisis.

Recruitment processes can take a long time. Companies usually question whether the person recruited is the best person for the job and can use all the necessary tools.

Hiring freelancers to do the job at hand is usually the most feasible as freelancers are more temporary.

In the UK, there is a special tax called IR35 which businesses have to follow. One of the conditions of hiring freelancers over employees is that freelancers have to have their own equipment to do the specialised job at hand.

Freelancers don’t need permanent office space

Creating a permanent space in an office is an expense. If the office runs out of space, the business needs to move to a larger location costing more money.

Many businesses have started hot-desking which can facilitate freelancers whenever they come in. Most freelancers also have the ability to work remotely, requiring no space and possibly a cheaper rate.

Because of channels such as Slack, and conference software such as zoom, screen sharing makes reviewing work simple and very effective.

Many freelancers are also working across the world in different time zones such as Thailand, Seychells, or even Mexico!

The freelancer has made a mistake

If the freelancer does a mistake and the company loses a lot of money, the company hiring has the full right to claim negligence and compensate for losses. Freelancers need indemnity insurance for protection, policybee is what I use, and the price I pay is so little compared to the price I would pay if I was taken to court!

Freelancers only charge for the work they do

When clients hire a freelancer, they are only paying for the work that they do. This can be a great way to save money, since the client is not paying for things like office space or benefits. Freelancers also tend to be very flexible, so you can often negotiate a lower rate if you’re willing to pay by the project. And if you’re not happy with the work, you can simply end the arrangement and find someone else. In short, hiring a freelancer can be a great way to get quality work at a price that fits your budget.

We can make the freelancer disappear

It’s difficult to legally make a full-time employee disappear, however with a freelancer; once the contract ends the company doesn’t have to hire them again. Some employers also pay late or do not pay at all. Imagine that happening to an employee!

Freelancers get to pick and choose who they want to work with. Usually a few red signals appear if the client doesn’t want to pay. Usually, when a freelancer doesn’t want to work with a company again, rates are increased.

freelancers don’t get paid holiday, health insurance… plus more

Freelancers have to set aside money to pay for holidays, insurance, equipment, plus more. As well as this, they have to deal with their own national insurance and tax returns. Many people assume freelancers are paid too much, without realising they don’t get the same perks.

Up-skilling in-house teams

As businesses increasingly rely on technology, it’s more important than ever to have a team of skilled in-house professionals. Up-skilling your existing team can be a cost-effective way to ensure that you have the resources you need to keep up with the latest changes and developments in your industry. In addition, up-skilling can help to improve morale and motivation, as employees feel more valued and invested in their work. And of course, it’s also important to keep up with the competition – if your competitors are investing in their teams, you need to do the same in order to stay ahead.

Many freelancers get paid more so they can upskill in-house teams and educate them on the industry and best practices. Sometimes when working in-house you become pigeonholed and the whole industry moves fast, leaving teams behind.

Freelancers aren’t limited in working hours

Unlike the 9–6 workers, many freelancers are on-demand all hours of the day and sometimes night. If deadlines need to be met, freelancers are able to jump in at a premium and get the job done. When was the last time you worked at the weekend?

Freelancers charge more because they’re worth every penny

Freelancers get paid more because they are usually on-demand. They can help out and provide businesses with exactly what they need in a short period of time… Sometimes during unsociable hours until projects become more manageable.

Employers don’t have to pay freelancers any benefits such as holiday allowance or national insurance. In the long run, this saves businesses money and time. But in hindsight, the in-house benefits in some companies can add up to more than the freelancers rate.

Freelancers fork out the hard-earned cash to provide the essential tools and equipment needed for the job at hand; such as computers, software, and camera equipment.

Freelancers don’t need permanent office space. They work faster and harder than average employees because they want to be paid and leave on good terms.

freelance camera equipment