Freelance, interim, temp to perm, or permanent?
It is highly advisable to think carefully about the type of short term resource you need and review it periodically. Getting it right will make sure you get maximum value for money and ensure a positive experience for your business. Here are some scenarios to help you identify what model is right for you:
If the temporary period of support is unknown and hard to predict
A self-employed freelancer gives you the flexibility to book and dispense with their support at short notice. You would pay an hourly or daily rate agreed at the outset.
If the temporary period of support is known and predictable…. you have two choices:
Employ a self-employed freelancer for a fixed period of time. A freelancer will often reduce their rate for a guaranteed period of time. You would continue to pay them as a self-employed worker, on invoice. It is important to be able to reason with the Inland Revenue that your freelance/short term requirements can not be satisfied with a new permanent member of staff.
Employ a freelancer on your payroll for a fixed period of time. This avoids any IR35 issues and will be cheaper than paying a self-employed freelancer as the proposition is often a pro-rata salary. However, be aware that it will be difficult to attract the calibre of candidate you would like on a pro-rata salary in line with a permanent wage. A seasoned freelancer may consider it will take them out of their freelance market place for too long, and risk existing relationships on an income that does not reflect the flexibility still required by you.
The options you have are to pay a significantly higher than average pro-rata salary or look to attract someone looking for a permanent role
Be aware that these people are often not immediately available and will need to work a notice period
If the temporary period of support turns into a permanent requirement, you can ask the freelancer if they’d like to join you on a permanent basis. They would understand that the role on offer is permanent, on payroll, with a salary in line with the permanent market place
If the freelancer is employed through an agency, such as Beyond The Book, a transfer fee would be charged which would be a one-off fee for long term ownership
At Beyond The Book we aim to make using freelance a positive experience all round.
We want to become every businesses preferred freelance provider, and we aim to achieve this through a consultative approach as well as provide talented and reliable freelancers. We will advise you at the outset, and during any freelance assignment, of the best short term resource model you should consider. And, we can help you find the right person, no matter how difficult the search.