With the freelancers expected to outrun the employees by 2027. We see more companies include a talent pool of freelancers to their company’s workforce, to increase agility and adapt to the changing labor market. There are many reasons considering the undeniable growth of freelancers in the world. One of the main reasons why people choose this type of work is because they want to attain a healthy work-life balance (70%) and work flexibility (62%).
Given these stats, we begin to see that access to a talented pool of freelancers is crucial for businesses looking to plug the skills gaps.
This then begs the question: how do companies proactively meet the challenge of managing their flexible workforce?
The answer: Using freelance management software.
So, in this blog post, we’ll look at the benefits of using such a platform.
But first:
What’s a Freelance Management System?
In short, a freelance management system (FMS) does what it says on the tin. It's a cloud-based software that helps businesses manage their flexible workforce.
More specifically, companies can use the platform to go from:
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Time spent on messy onboarding and laborious back and forth emails, to a seamless and easy onboarding process using one centralized system. Here you can also store and sign legal documents too.
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From money and time wasted on sourcing individual freelancers for their flexible workforce from multiple marketplaces and/or recruiters to matching, assigning, and inviting freelancers to your own flexible talent pool.
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From time wasted paying and checking invoices manually, to paying one automated invoice linked to specific projects.
...To name but a few FMS functionalities.
In other words, freelance management software is a one-stop-shop for handling every aspect of freelance hiring, onboarding, collaboration, and payment.
Needless to say, as your freelance workforce grows, implementing such software can go a long way to streamlining your freelance management efforts. Managing freelancers without an FMS is cumbersome (think of all the paperwork and spreadsheets!) In contrast, freelance management software takes away this pain by acting as a centralized place to manage your talent pool of flexible workers.
Freelance Management Software: The Benefits
Now that we've covered the basics, let's look at the specific benefits of using freelance management software:
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You'll Save Time
On average, HR pros lose around eight hours a week on manual HR-related tasks like data entry and responding to calls and emails (to name a few!). So, needless to say, HR managers are looking to save time wherever possible. This is where an FMS is worth its weight in gold.
As we've already hinted, traditionally, HR pros had to manage freelancers using spreadsheets, which required constant manual upkeep and a lot of time. In contrast, with your own freelancer database stored on an FMS with a shared calendar, you’ll instantly know who's free to work. Using an FMS allows everyone involved in the hiring process to access the same information without needing spreadsheets. Instead, you can quickly identify talent based on different search criteria such as location, rates, availability, skills, etc. With this information, you can promptly shortlist candidates and hit the ground running with your project!
Then, as soon as your latest hire accepts your project, the budget to pay them can be approved. After that, a statement of work can be signed, and the onboarding process can begin, all from one place.
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Easier Onboarding and Compliance
Quickly acclimating freelancers to the role/project they're assigned to, and your team culture is a must. This is where a streamlined and standardized approach comes in handy. Depending on the job, there might be all sorts of documents you and your freelancer need to wade through. For example, background checks, contract signings, NDAs, non-competes, IP policies, legal compliance, tax, workforce classification, and so on).
However, using an FMS to automate and personalize these processes reduces the time spent on onboarding-related admin and provides a better experience for the freelancer.
From the freelancer perspective, getting onboarding right is crucial; only 12% of companies provide a great onboarding experience. Yet effective onboarding affects retention, whether it's employees or freelancers. For example, one study found that most people quit jobs within six months due to poor digital onboarding.
The bottom line: Using a digitized system where you and the freelancer can sign, store, and share onboarding documents and information will speed up the process. All the while making important information more accessible. Win-win!
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Pay People on Time
Shockingly, 31% of SME businesses fail to pay freelancers on time, and more than 70% of freelancers say they have trouble getting paid. So, avoid being one of those companies and protect your business from garnering a poor reputation as a late payer. Otherwise, in the long run, you may risk freelancers declining assignments.
Reasons for late or non-payment aren’t always sinister but sometimes simply down to poor organization and unwieldy manual systems. However, this hurdle is easily managed by opting for automated systems that allow you to pay freelancers in different time zones and currencies.
Fortunately, a first-rate FMS streamlines invoicing, approval, scheduling, payment, and payment status updates so that everyone involved can track the process. Freelancers can upload or generate their own invoices based on the work completed over whatever period. Then, employers/finance staff can check the invoice and approve it. In addition, most FMSs enable users to pay invoices individually or in bulk; again, the latter is just another way to save time.
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Integrate With Existing Tools
A customizable FMS should work with the tools you already have. So instead of throwing all those spreadsheets out, you should be able to migrate that info over to your FMS. Broadly speaking, a robust FMS will integrate with:
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Excel
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Google Calendar
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Google Sheets
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Your payment systems, such as Quickbooks or Xero
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Your internal messaging programs, such as Slack
In simple terms, a good variety of seamless integrations should make adopting your chosen FMS technology quicker.
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Better Budgeting and Forecasting
This year, 46% of HR professionals anticipate that a minimum of 20% of their workforce will be freelancers/contractors. That means a different approach to traditional salary/compensation management is needed; therefore, budgeting is also affected.
As hiring freelancers is often cheaper than permanent staff, don't fall into the trap of accidentally blowing your hiring budget. The best way to avoid this is to keep an eye on the numbers. For instance, an FMS should provide the following metrics to help you keep your budget in check:
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Cost per hire
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Total freelance spend
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Budget reports
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Spend reports
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Length of time spent hiring freelancers
Having access to such reports enables you to accurately forecast future spending. However, you can also get more specific with your budgeting. For example, each department or team running a project can be allocated a budget. An FMS should enable these teams to track their allocated freelance spending in real-time to monitor actual vs. planned spending.
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Project Management and Visibility
Timely and professional communication is essential for fostering fruitful relationships with freelancers. An FMS platform helps keep all crucial information in one place where both parties can quickly review it. This ensures that discussions about the project's scope remain in clear view and can be referred to at any time.
More specifically, with an FMS to organize the details of the job, you and your freelancers can easily clarify:
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Project timescales and deadlines
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What’s expected of the freelancer
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How much the freelancer will be paid
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Who's involved in the project
This project management functionality ensures freelancers are aware of their tasks and responsibilities. The best freelance management software will allow you to tick off tasks and work towards clearly marked milestones so that you and your contractors can all stay on the same page. This goes a long way to assisting freelancers with:
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Optimizing their time
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Staying on top of their tasks
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Engaging with your feedback and revisions
To clarify, FMSs aren’t intended to replace project management systems but instead provide the tools you need to up the tempo where managing freelancers are concerned.
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Build Your Own Talent Network
With a freelance management system, you can build a talent pool of skilled freelancers from your extended employee network. This makes it easier to get in touch with professional contractors you already know and trust. You can manage your talent pool from one place instead of wading through the murky pools of online directories. This way you transfer your talent network into a long-term asset
Let’s Summarize
A robust and customizable freelance management software will help you onboard, manage and pay your freelancers from one single platform. It takes the pain out of paperwork, making it easier for you to oversee your growing freelance network. Gone are the days when you had to rummage about in filing cabinets for paperwork or mess around with complicated spreadsheets. Instead, all the information you need is in one easy-to-navigate place.
A freelance management system such as Bubty is a cost-effective long-term solution to all the above. So, if you’re interested, book a demo, and let us show you how!
