Noting a shift in market demands SIA and Fiverr report that 90% of tech execs hire freelancers around high-stress periods. Budgets, however, remain finite– if not reduced. 

Despite talent shortages persisting, IT consistently rings in as the biggest spender of B2B IC spending at $177B annually. Many companies turn to freelancers to help bridge this talent gap; Fiverr reports that nearly 29% of firms tap into freelance talent daily while a little over 30% do the same two to three times a week. This frequency highlights “the essential nature of flexible talent in sustaining tech industry demands.”

HR and Procurement teams need the ability to add flexible, expert, and compliant talent to their roster without blowing their budgets. 

The challenges of sourcing  freelancers

Having a flexible, expert workforce on demand is key to success, but putting that into place requires some work upfront. Freelancers must be sourced, vetted, and kept compliant throughout the time you work together. 

A proper vendor agreement (contract)  should cover not only the work the freelancer will be undertaking, but also have standard vendor insurance requirements to respond if the freelancer gets injured on the job, damages client property, infringes on IP, or causes a data security breach. While these vendor requirements are important, they have the unfortunate impact of shrinking the pool of available freelance candidates. 

On the other side of the equation are the freelancers. They usually run their small businesses on tight budgets and don’t want to exceed them by buying expensive annual coverage for short-term work with varying insurance requirements. 

This means enterprise companies either have to ignore their vendor requirements or turn to other far more expensive staffing alternatives, resulting in ballooning budgets. Smart teams anticipate this tension and have a plan to meet everyone’s needs for flexibility and compliance.

How you can get ahead of these challenges

What those smart teams are doing is finding the right partners to smooth the process on both ends. Organizations are understandably reluctant to risk their brand reputation on freelance labor that hasn’t been properly vetted and insured, especially in sensitive areas like IT. One security breach can lead to a bad news cycle, resulting in reduced revenue.

Freelancers likewise want to stay compliant to get the best jobs available without running large overhead expenses. The best talent is more likely to agree to work with organizations that have those smart partnerships in place, enabling each freelance contractor to source what they need as part of the onboarding workflow, hassle-free 

At 1099Policy (we might be biased), solutions include worker’s compensation per gig- in the contractor’s name- to avoid reclassification risks in case of a work-related injury. Liability and professional liability insurance are also available on a per-gig basis in support of a contractor’s onboarding journey.  With a bit of cooperation, there’s no reason why data breaches can’t be added to the list of available per-gig coverages. 

Think of it as an a-la-carte menu able to meet all of your compliance needs! 

Final thoughts

Staying agile in increasingly competitive markets means you need a workforce that’s flexible, talented, and cost-competitive. Freelancers who get re-routed to W2 engagements solely because they can’t meet vendor insurance requirements cost 20% to 30% more than freelancers. 

Include peace of mind in the process by working with a partner who can keep freelancers compliant without blowing the budget for them– or for your organization. Imagine a smooth onboarding process that encompasses the nitty-gritty insurance requirements so you and your team can do what you do best: focus on the work. 

If you think 1099Policy might be that partner for you, get in touch via email.

Photo by Headway on Unsplash