If you've never worked with freelancers before, there are a few basics you should be aware of:
Freelancers charge clients by sending them an invoice for the work done. Invoices should be kept for your accounting purposes, even after they are paid so make sure you are storing them away appropriately.
Also make sure that invoices comply with any local accounting laws. For example, in Australia, invoices from other Australian businesses must contain an Australian Business Number. Generally invoices must contain an invoice number, an amount payable, and details of the freelancer's business name and address.
If you are working with a lot of freelancers, you may wish to create a document specifying any details of how to invoice, how payment works, and so on. This can then form part of the briefing process for new freelancers.
For larger jobs, particularly design and development work, it's a good idea to have a contract. The aim of the contract is to make sure the job is delivered as specified. However, for day-to-day work like articles or editing a site, the contract will exist more to specify terms that you both agree to.
A contract should cover how much notice you need to provide to a long-term contractor if the work is finishing up, and vice versa if they are moving on. It might also state who owns the content that is created and what formats it is licensed for. If the freelancer is privy to information about your business such as financials or plans, you may wish to include confidentiality clauses. Finally, noncompete clauses particularly for permanent freelancers such as editors can be useful too.
Generally speaking you should have a fairly straight-forward agreement with your freelancers and then pick people you can trust. Contracts can get as complex as you want to make them, and if you're not careful can do more harm than good, giving a feeling of mistrust. Still they are important to have and it's worth talking to your lawyer about what is appropriate for the different types of people you are working with.
Rates for a freelancer are generally higher per hour than an employee. This is because a freelancer needs to take care of all their own benefits from sick pay to time between contracts, health insurance to longterm savings plans for retirement, their own office space to computer equipment. Don't expect to pay a freelancer as you would a regular employee; there has to be a flip side to all the benefits of working with freelancers!
It's important to take care of the people who work for you regardless of whether they are freelancers or employees. Make sure you are always clear about what is expected of them, make sure you pay on time, try to provide regular work, give a lot of notice when arrangements are changing and generally look after their welfare.
As an employer of any sort you have, an important responsibility to the people who help you build the business. In the long run, you will receive benefits back from loyal and hard working staff who love working at your company.
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Note: This article was sent to us by: Sharon Reed at 02152011
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