How to Manage Risks When Hiring Tech Freelancers (Contractors)
estimated size of the global market for digital transformation in 2021 was more than USD 600 million. The market size is set to increase at a compound annual growth rate (CAGR) of more than 23% from 2022 to 2030. Such growth has also spurred the demand for skilled tech talent. However, this demand has created new challenges for employers worldwide, such as increased competition in the hiring market and a shortage of qualified candidates to fill these roles.
As the demand for tech talents surpasses supply, more than 100,000 tech positions remain unfilled, and this shortage continues to rise. This shortage is prompting employers to look for cost-effective ways to meet their hiring needs. This often means turning to freelancers to supplement their existing teams and provide skills they lack in-house. While this can offer benefits, it also comes with risks. In this article, Fetch elaborates on common risks when hiring tech freelancers and provides tips on addressing them.
Common Risks When Hiring Tech Freelancers
The benefits of hiring tech freelancers far outweigh the risks and yet, there are drawbacks to this approach. Having a clear understanding of these risks helps you avoid unpleasant surprises down the road and ensure that you have the right systems in place to reduce risks with outsourced tech freelancers. Without going into detail, we find that these are the common risks:
Tips for minimizing risks when recruiting tech freelancers
Fetch has listed the key factors that systematically mitigate business risks when hiring tech freelancers. These will help you plan your approach and evaluate your options carefully.
1. Find a reliable HR and talent acquisition partner
Mitigating business risks when hiring tech freelancers starts with building a resolute team of dependable contractors and service providers. There are excellent quality tech freelancers available who you can count on to deliver work on time and within budget, regardless of the challenges that come along the way. However, finding these highly skilled individuals is often easier said than done and costs you time and effort. Based on Fetch’s insight, the average time to fill tech roles is longer than 68 days. This could delay projects and keep businesses from realizing their full potential.
Selecting great talents requires vigorous candidate profiling, screening methods, and background checks. While you can do this in-house, you may end up spending a great deal of time and resources in the process. Fetch specializes in recruiting top tech freelancers and operates as an HR and talent acquisition partner for its clients. We offer simple and cost-effective human resources solutions that deliver the right talent for your project needs. Our clients get to mitigate the risks inherent in building and maintaining external talents without the excessive monetary and time costs cost involved in the process.
2. Have a written and signed contract agreement
- Scope of work and the expected level of quality
- Deadlines and milestones
- Payment terms
- Termination clauses
- Confidentiality and non-disclosure agreement
Fetch gives you access to an enormous pool of Vietnamese tech freelancers. We create bespoke contracts that meet the set local laws and regulations and match client expectations. We take care of the daunting task of keeping up with ever-changing laws and a wide range of interpretations thereby resolving your administration costs. With Fetch, these locally compliant service agreements are automatically enforceable without a need for you to create a legal company entity. This saves you the time and effort of having to learn the ins and outs when hiring Vietnamese freelancers. With this administrative burden resolved, you can stay focused on running your business.
3. Provide freelancers with an engaging and productive environment
At Fetch, we operate our own attractive and modern offices with a vibrant community of developers. The fully equipped office space provides all the necessary infrastructure and a native collaboration environment where developers can share ideas with others. Our community programs take various forms and shapes to keep engagement high with our developers. This gives them a sense of belongingness and values them more than just a gig-worker. This in turn helps with productivity and retention.
Hiring tech freelancers or contractors is an attractive option for employers and yet it is often risky if employers fail to put in place appropriate risk management strategies from the outset. Fetch’s services can help alleviate these risks by protecting your business and your proprietary information while enabling you to reap the rewards of a highly flexible workforce.
Bonus article: Read about our Chartdesk case study where we supported a bootstrapped startup with tech talent to grow