What’s your growth strategy based on? When your business is in survival mode, losing sight of growth opportunities is an easy trap to fall into. That’s why Top Applicant is doing the hard work for businesses with our SWOTS studies. These studies are based on real-world scenarios and educated suggestions from our seasoned hiring experts. Our featured examples focus on when to hire freelance workers and what to expect.
Examples
Ex. 1. In Over Your Head
Ex. 2. Thinking Ahead
Ex. 3. Expanding Your Workforce
Summary
The SWOTS Method
Have you ever done a SWOT analysis of your business? If you haven’t, this is your sign to plan one soon. This is an excellent way to take an objective, proactive approach to the health and future of your business, no matter the shape or size.
While this analysis is an effective way to learn about the current health of your business, it’s not always a crystal ball. So, keep an open mind as you decide how to pivot from your findings. Our examples consider these 5 things to decide when to hire freelance workers:
Strengths
When you take a look into your strengths, focus on what makes your workforce work. Maybe you have a strong internal culture, or your bottom line has been improving. Each of our examples share factors that can make your strengths even stronger by hiring freelance workers.
Weaknesses
Sometimes, it’s easier to come up with problems than solutions. That’s why it’s best to lay it all out when you consider your current weaknesses. Hiring freelance workers may seem like the answer to your weaknesses, but keep in mind that freelancers come with their own downsides.
Opportunities
In a SWOT analysis, these can be considered opportunities that would arise from change. Or they can be considered opportunities currently facing your business. Both are equally important when you’re considering hiring freelancers.
Threats
When weighing the pros and cons of hiring freelancers, it’s important to identify the ways your business will meet the challenges that come from bringing them on your team. Temporary workers can have a lasting impact on the future of your business!
Suggestions
In our focused articles using SWOT analysis, Top Applicant would like to share our expert suggestions. Our research draws information from professionals across diverse industries, experience levels, and backgrounds. Every suggestion is completely for educational purposes, so carefully consider your unique situation as you read through our examples.
In Over Your Head
The world of business moves fast. In just a few years, your business can go from a scrappy startup to an industry name. Businesses don’t grow overnight, but your workload can feel like it if you don’t manage your growth plan!
If your business is going through growing pains, you may feel in over your head at times. By knowing when to hire freelance workers, you can find the help you need to get caught up!
Strengths
If you’re feeling busy, that’s a good thing! That means you’re meeting a need in your market. This can easily be seen in rising sales and increased customer interest. Hiring freelance workers can help you meet the rising demand.
Increased business means your product or service makes your business the go-to—which is why you need go-to people to maintain your strong market position. When hiring freelancers, you can choose from a broader range of expertise to expand your reach.
Weaknesses
A common weakness among booming businesses is overworked staff. High demand means high commitment to the people you employ and the people you serve. So, to avoid stress, turnover, and lower productivity, knowing when to hire freelance workers can lighten the load on everyone!
However, a potential drawback is that your current employees may see freelance workers as a threat. They may feel like you’re trying to outsource positions, or they’ll worry about staff cuts. That’s why it’s important to understand that freelance positions should be a tool, not a complete solution. While you’re catching up, be sure you make room for additional staff in your budget and growth plan.
Opportunities
Businesses can tap into a broader pool of talent than ever before with freelance workers. This lets you expand the expertise of your business. Freelancers are a great resource to bring fresh ideas and innovative approaches that your growing business needs.
Threats
One of the biggest mistakes employers make when hiring freelance workers has to do with scaling. Operations, infrastructure, and manpower all need to keep pace with growth—it’s all a great and delicate balancing act. Freelancers can help your business maintain balance as you get through hectic times.
The biggest threat that comes with freelance workers is their inherent disconnect from your company culture. While working with freelancers, make sure to maintain morale and motivation. Difficult periods of growth can lead to a breakdown of culture if you’re not prepared.
Suggestion
If you find yourself drowning in work, it’s always okay to ask for help. In this situation, deciding when to hire freelance workers can be the lifesaver you’ve been looking for. However, we recommend using them sparingly. Investing in a few part-time employees, or one full-time employee, is the better long-term solution. Offering contract or temp positions can be a more fiscally responsible pathway than freelance work.
Hiring Subcontractors Explained
Thinking Ahead
Even if your business is keeping up with demand, that doesn’t mean you should get comfortable!
If you’re not thinking ahead, you’re doing your business a huge disservice. To kick complacency for good, freelance workers can be a great resource.
Strengths
If your business is attracting and retaining talented people, this makes your employee pool competitive and vibrant! This can lead to a strong company culture that fosters innovation and collaboration.
With good retention and great employees, you can expand your efficiency to easily meet increasing demand. To bridge the gap between your current and future staff needs, freelance workers are a great way to scale your growth!
Weaknesses
The biggest thing holding businesses back from this growth strategy is the dreaded cash flow crunch. Expenses can quickly outpace incoming revenue if you’re not prepared. So, make sure to budget accordingly as you invest in additional resources.
Another weakness growing businesses may experience as they expand is getting bogged down in daily processes. More employees, paperwork, and responsibility can lead to the daily grind becoming… a grind! While freelance workers can do some heavy lifting, they come with additional responsibility for your leadership.
Opportunities
In this case, the biggest benefit of freelance workers is that you likely won’t need to provide benefits or office space for them! Freelancers add flexibility to your workforce and help to manage costs more effectively compared to full-time employees. With added flexibility, you can scale your workforce up or down as your business takes on new projects and tasks. This means you only pay for expertise when you need it!
Threats
As your business expands, it can become an attractive target for criminals. While freelance workers can be helpful, not every freelancer is a reputable worker. Stay safe by investing in necessary security measures before opening up your business to more opportunities.
As you consider hiring freelance workers, your business needs to know how it complies with complex regulations. Different industries come with different compliance requirements. So, keep your legal and human resources team close as you bring on freelancers!
Suggestions
As you find your groove, your company will grow by sticking to the basics. Keep the people who helped get you here happy, and you’ll be rewarded. For a 5-year plan, we recommend increasing your internship capabilities and exploring part-time positions. These are great ways to train and build valuable employees. It may take more time, but you’ll get out what you put in!
Part-Time Works?
Expanding Your Workforce
Our final scenario is one that thousands of businesses are facing right now. Some of the hottest industries hiring now need to expand their workforce far beyond the original scope.
So, how do you keep the lights on while hiring and training full-time employees? Hiring freelance workers may just be the solution!
Strengths
Being in a rapidly growing industry propels businesses to the next level fast! Over time, snowballing opportunities can provide pathways for further expansion. As your industry grows, your brand recognition likely follows. And as you expand, your business will attract new customers, employees, and partners!
In-demand freelance workers are driven to gain experience in hot industries. This allows you to be highly selective as you choose the people who will help build your business. As you gain an eye for talent among freelance workers, they may even be willing to join your team!
Weaknesses
One of the biggest banes facing booming businesses lately is fulfilling existing orders while managing growth. Even if you’re not in over your head yet, improving marketing and sales can take a back seat as you take on more projects and responsibilities. Long-term stagnation like this can throw your business into survival mode, making it vulnerable if your industry starts to cool down.
To keep up with growing demand, your customer service teams may be struggling to keep up with inquiries and complaints. Even with more business than ever, existing clients should never be put second to new opportunities.
This is where hiring freelance workers can help or hinder your business. While they may help shoulder the workload, workers who are disconnected from your business may damage long-term partnerships and lead to lost recurring revenue you depend on.
Opportunities
If your industry is experiencing exponential growth, you likely won’t have time to train and hire full-time team members. That’s where freelancers come in handy. Since they can often start work quickly, businesses can complete projects faster and capitalize on timely opportunities.
Freelance workers also allow your business to adapt to changing markets with a more diverse and scalable staff. Modern freelance workers are all over the world. This presents access to a virtual global talent pool and a wider range of availability and perspectives.
Threats
While many businesses are reporting record profits, they don’t always like to report their debt! Some of the biggest movers turn to taking on debt in order to expand their capabilities with freelance workers. While this is sometimes chalked up to the price of doing business, excessive debt can become a big burden as industries and economies turn.
Rapid growth for anyone can lead to cash flow issues. As expenses outpace incoming revenue, businesses need to be cautious as they invest in additional resources. Hiring freelance workers is one of the easiest ways to scale overhead associated with staffing.
Suggestions
When you’re at the top of your game, there’s always a way to make the best better. In this case, freelance work may be a great way to meet new margins and smash old records. This is the time to innovate, so inspire your teams to work and learn from one another! Keep in mind that the work may be temporary, but the impact can last for decades.
Pros & Cons of Temp Work
Summary
To decide when to hire freelance workers, there are so many things to consider. Completing a SWOT analysis of your business may help to define your strategy. So, make sure you do the homework before revamping your hiring strategy. Freelance workers can take your business to the next level. But there are two sides to every coin.
Since every business is unique, your hiring practices should be customized to your exact needs. That’s why Top Applicant is happy to offer these insights, suggestions, and tools to help businesses hire the modern way. Take your next position beyond the job board by signing on and building your profile!
