Welcome to the gig economy: Why hiring freelancers needs to be part of your 2025 talent plan
4 mins, 12 secs read time
Netflix. DoorDash. Uber. We can get nearly everything we need on demand these days. But talent on demand? Not quite there, but we’re gettin closer. Brought about by world events, mass layoffs and a desire for better work-life balance, the gig economy has reshaped the work landscape.
Let’s explore why you should leverage freelancers and how to include gig workers in your talent management plan.
Why is hiring freelancers becoming so popular?
The rise of the gig economy has shifted the workforce, with 36% of the U.S. workforce – or about 58 million people – identified as independent workers in 2022.
What’s more shocking is that 78% of companies say they’ll look to hiring freelancers to fill talent gaps, even (or especially) during a hiring freeze.
A bridge for skills gaps
Instead of waiting for your team to upskill, you can access a talented network of contractors who’ve already built expertise in a specific area, like AI. And 60% of freelancers have proactively upskilled – while only 40% of traditional workers have done the same.
Freelancers allow you to build effective teams and fill any skill gaps without having to worry about lowering your hiring standards or paying an arm and a leg to relocate new hires.
–Adam Jackson, Co-founder and CEO of Braintrust
Increased productivity
Did you know that the average full-time employee spends over 21 hours a week in meetings?
Freelancers aren’t bound to the same demands, bypassing endless meetings and emails. Their main focus is delivering projects and results.
And a Harvard study also revealed that 40% of businesses said hiring freelancers led to improved speed to market, increased productivity and enhanced innovation.
Lowered costs
When it comes to your talent management plan, building up your candidate pipeline is a months-long process. And it costs up to $4,700 per candidate to find the right person, plus about 30% of their annual salary for the benefits package.
Gig-based workers don’t qualify for expensive benefits and may cost less than hiring a similar expert in a full-time role. However, you should remember: The best freelancers get plenty of offers, so still try to provide perks they’ll value.
Even though I’m not a full-time employee, I was excited about attending the Marketing team offsite. It allowed me to bond with the team, become more invested in the company and gain key insights that only help me do my job better.
–Giovany Vasquez, freelance Sales Enablement Content Specialist
A framework for working with gig workers
As you consider hiring freelancers, create a framework for working with them.
Structured hiring should still be the #1 priority. Use structured hiring to ensure you’re hiring the right person. Just like you would for full-time folks, have your job kick-off to understand the needs of the role, align on interview questions ahead of time and fill out your scorecards.
Understand what matters most. Flexibility and work-life balance are top priorities for freelancers, so consider work styles that support them. Try asynchronous communication and flexible contracts (project-based or part-time) alongside supporting their work hours and availability.
Create clear policies. Contractors aren’t entitled to paid time off, insurance or other benefits, so make sure you have transparent policies about how you’ll work together and communicate them.
Integrate freelancers fully. Invest in all your people – including freelancers. Invite gig workers into the fold with dedicated training and career development opportunities. And include them in your culture.
Legal and compliance considerations
Set the tone for a great freelancer partnership from day one while protecting your company by knowing and honoring your legal obligations.
Develop clear contracts. Ensure you’re protected should a freelancer not deliver, share confidential information and more.
Ensure timely payments. New York City’s “Freelance Isn’t Free Act” mandates that all contracted workers be paid within 30 days – it’s good practice and fosters a trusting relationship with your gig workers.
Understand classifications. Freelancers are classified as non-employee contractors and receive a 1099 tax form instead of a W2. Your HR team should understand the difference – a mistake here could be costly.
Prioritize data security. Use the same level of security as with full-time employees, storing data in encrypted software, and ensure they’re up-to-date on any security trainings.
Win big with freelancers
Overall, hiring freelancers can help support major campaigns or priority initiatives. Gig workers can access freedom and flexibility while companies get cost-effective talent – and results – that just might make the annual board meeting something to look forward to.
Make sure your freelancers are prepared to dive right in by setting up a clear onboarding process for them. Here are 3 important tips.
Sheena Fronk
is a writing-obsessed entrepreneur who founded her all things writing passion project turned small business, wanderluster co. She works with SaaS and tech companies, transforming jargon into conversations using human-centered copy. When not working, Sheena eats doughnuts, plays with her pup and travels the world.