4 Reasons Why Startups Should Hire HR Freelancers?
Posted 31-May -2019
The World of Work is evolving rapidly especially with the rise of the gig economy. Remote and flexible working trends backed by intuitive technology have boosted Freelance industry like never before. According to PayPal, with 41% freelancers witnessing growth in 2017, India is now the largest freelancers market in the world.
Many thousands of businesses of all sizes are seeing this as a huge opportunity to boost their growth and stay ahead in the competitive environment. The rising demand and supply in the freelance market is what fuelling the gig economy and employers including startups are embracing it with both hands. Developers, Designers, Writers, etc. are the top freelance roles that employers are interested in however, HR is not behind. According to Noble House, an HR aggregator platform, 70% of Indian employers mostly startups hired HR freelancers in 2018.
Here are the top 4 reasons that startups considered while hiring freelance HR.
Reason #1 – HR Freelancers are the true experts
While you may be an expert in many domains, when you are recruiting and engaging employees there will be situations that are completely new for you. The same can be said for your employees.
By hiring an HR freelancer, you can have an expert in the field that would take care of your HR services while you focus on building your startup. Saumil Majmudar, Co-founder and MD at EduSports explains why startups need an HR. “In the early stages, the founder(s) need to take on the strategic HR role and consider outsourcing the transactional part, such as HR Services, so that they stay focussed. As the team grows, there is a need for an HR consultant/team in place as the number & quality of transactions increase, the founders also take on specific functional roles (say, product, tech, biz dev, marketing, etc) – and HR can end up getting neglected.”
An experienced HR can help you get quality candidates that are integral to building your product and reduce the count of costly mis-hires. According to the U.S. Department of Labor, the price of a bad hire is at least 30% of the employee’s first-year earnings. For a small company or a startup, a five-figure investment in the wrong person is a threat to the business.
Being an expert in that field, the HR freelancer will give the candidate you want after all, it’s the right team of employees that really matters for the startup. According to Forbes, having a diverse and skilled team has been shown to be a big indicator of a startup’s success.
Reason #2 – HR Freelancers understand the agility of your startup
Business demands vary depending on external factors that we cannot always predict. A startup
1. You can easily hire an HR freelancer as per demand basis and release when the work is done.
2. The freelance HR that you hire can also help your startup to quickly adjust to current staffing and business needs. By creating an agile system of workforce, you’ll avoid having too many hires on board at inopportune times.
The good thing is that the freelance market is predicted to triple by 2020. Therefore, hiring a freelancer would be more at ease in the times to come.
Reason #3 – HR Freelancers are cost effective
The reasons startups love freelancer is they are cost-effective. HR Freelancers are highly skilled at what they do and come at a much lesser cost than that of a third-party consultancy. In-house HRs take the ownership of their position and give their best efforts understanding the fragile nature of the startup industry. They thrive to save both time and cost for your startup.
Between managing benefits, payroll, time off, writing employee policies, hiring, firing, onboarding, and everything else that’s going on, when will you have time to talk to investors, build the product, or make significant business developments?
Having an HR freelancer will save you both time and money because you do not need to make any effort in trainings. You can hire an HR freelancer who is already an expert in what you need and who will finish your project in no time with no fuss.
A freelancer might cost you more per hour initially but in the long run, the savings will add up quickly.
Reason #4 – Freelancers share your passion
Freelancers and startups have one thing in common – they both have the entrepreneurial spirit to make things happen.
Also, independent HR consultants are highly dependable on their previous work and reviews. Considering that they mostly get a new gig by showcasing the successful projects they’ve already done, they need to be really good in order to land a new job.
For that reason, freelancers will always do their best to provide you with a satisfying end result.
Not to mention that being an expert in that field shows that they are passionate about what they do and they are visionary and are up to date with any updates.
Sarah Jordan, a managing editor at Canada-Writers explains, “Freelancers run their own business as well so they typically share the same values as business owners. They show absolute motivation and passion for what they do.”
Business owners are starting to become more aware of the importance of freelancers in their work process. While business owners get to work with an expert and save some money, freelancers have an opportunity to work in one specific field of business and don’t depend on anyone. Ultimately, it is a true example of a win-win situation!