March 28, 2006
COMPANIES HIRING FREELANCERS
Brooklyn, NY - March 28, 2006 - After surveying freelancers about the qualities that define a good employer, Freelancers Union has developed a set of standards that independent workers can use to judge how "freelance-friendly" a company is.
The Freelancers Union's "seven best practices for companies that hire freelancers" emerged from a recent survey of over 1000 freelance workers in the New York City metro area. In the poll, independent workers were asked to name the best companies they had worked for, and to explain the factors that influenced their votes
"Freelancers told us what mattered most in their relationships with employers, and their input pointed to a core set of industry standards for firms that utilize and rely on independent workers. These 'best practices' will help freelancers identify those companies who want to do the 'right thing' by their independent workforce," said Sara Horowitz, executive director of Freelancers Union.
Independent workers - freelancers, consultants, temporary employees, sole proprietors, and other workers in non-traditional work arrangements - are a growing and increasingly important segment of the workforce, making up as much as one-third of the workforce nationally. They can help manage fluctuations in workload without the need to hire new staff and then downsize when the volume of work decreases. Freelancers bring relevant knowledge, expertise and experience to projects as they arise, helping employers who are unable to make costly, permanent staff additions.
But the poll found that independent workers feel they lack control over such fundamentals as compensation, job requirements, and work hours - all areas in which staff workers receive protection from the law. The survey respondents indicated they most valued, and most wanted to work for, companies that follow these practices:
1. Be clear in contracts about terms, deadlines, and project scope.
Many poll respondents reported that clients had enlarged the scope and magnitude of projects mid-way through. Often, significantly more work was required - for no additional compensation.
2. Provide easy access to the essentials.
Freelancers need to access the staff, information and equipment it takes to complete a project. They won't know where to find things as readily as staff people. Freelancers should have an assigned, knowledgeable contact person who will facilitate introductions to key staff members and provide all relevant background information.
3. Give proper credit for work done.
Many respondents reported that clients used their work without permission, or unfairly took credit for work they did. Freelancers are also unhappy - and may have legal recourse - when a potential client uses ideas from their project proposal without hiring or in some way compensating them.
4. Provide a safe work environment free from harassment and discrimination.
Staff employees enjoy legal protection from unsafe work conditions, harassment, and discrimination. Independent workers do not. One respondent, sexually harassed while working on a project, was ignored by her clients when she reported it. Freelancers should seek to work with companies that afford the same protections granted to permanent employees.
5. Pay at the market rate.
Employers should remember that freelancers have overhead costs just as businesses do. In addition to paying for their own health insurance and retirement plans, freelancers have higher tax burdens than traditional employees. Many provide their own office space and equipment.
6. Respect their time and pay them for it.
Freelancers frequently turn down other work when assigned a project. If a scheduled project gets canceled at the last minute, the freelancer suffers a double income loss: the revenue that the work would have generated, and the income from the client they turned down. Permanent employees can get unemployment insurance; many independent workers can not.
7. Pay the agreed-upon amount in a timely fashion.
It took many respondents several months to receive payment from their clients, and they often were paid less than the amount originally agreed to. Others were only paid after repeated phone calls to the client. Some were never paid at all.
Of the survey respondents, 58% said that they were freelancing by choice, whereas 25% claimed independent working is the norm in their industry. Forty percent have been freelancing for more than five years.

