The freelance (or “gig”) economy has exploded over the past few years, with increasingly skilled roles being outsourced to independent contractors, and for good economic reason: you only pay for the services you use, your capabilities remain flexible, you pay less in payroll taxes and you can keep the headcount down for the office holiday party.
Typically, freelancers are utilized for necessary functions (finance & accounting; presentation graphics; IT updates & maintenance) neither core to the business, nor needed on a full-time basis. When it comes to these “high-end commodity” roles, as I like to think of them, the economic case for freelancers is clear-cut, particularly for smaller businesses or those whose needs are cyclical or unpredictable.
But what about situations where the economic benefits of freelancers are less quantifiable, or for roles perhaps more core to the business? While the formula for assessing the value of consulting talent in these scenarios is different, that value most certainly exists. Firms typically prefer full-time, in-house employees for functions like marketing, business development and strategy for obvious reasons: they are fully “bought in,” do not have multiple engagements competing for their time and more long-term continuity can be expected. However, there are some very important reasons to consider consulting or freelance talent here that are not purely economic.
1. Outside Perspective. As cliché as it may sound, it has significant value. Many companies, particularly those with a strong culture and identity, tend to look at things from a “company” point of view. While cohesion is good, and necessary, it sometimes leaves good ideas hiding in plain sight (alternative use cases for a product; new customer segments; a new product category). Perspective and experience aside, an outsider can help a company understand how other outsiders (read: customers!) perceive the company and products. If the “usual” presentation template looks stale, or the marketing strategy outdated, they are more likely to recognize it.
2. Company Politics. Yes, unless you are a solo practitioner, your organization has some level of company politics; it is unavoidable. The issue is how and where the business suffers for the sake of political expedience. What matters, the idea, or who thought of it? Who will lead the initiative, the most qualified team member or the VP’s golf buddy? And where are the lines too blurry to be certain? Freelancers are apolitical. There are no competing interests; they are hired to help the company solve a problem and their only job is to arrive at the best solution. Taking time to pick a faction is not billable.
3. Clear Motives. For better or for worse (in this case, better) consultants are mercenaries. Their goal is to win the business, complete their project, and get paid. Much like with company politics, there is no need to worry whether a freelancer will (figuratively) stab you in the back for personal gain. While long-term buy-in from employees is a good thing, there may be things those employees will not tell you that a consultant will. Remember that stale presentation template? Not only is an outsider more likely to recognize it, they are more likely to tell you.
So, the next time there is a major new business initiative, or important sales pitch, on the horizon, look beyond your internal team and consider the value of outside talent. For every valid reason to keep important functions like marketing, business development and strategy entirely in-house, there is an equally good reason seek the counsel of an outsider. The worst-case scenario: increased confidence in the status quo because your consultant sees things exactly the same as you do. But beyond peace of mind, there are many places where freelancers can make valuable contributions, even when those contributions are more difficult to quantitatively calculate.
Dan Palay is a Chicago-based consultant, specializing in marketing and business development for early-stage and business service companies. Please feel free to contact at [email protected].
.jpg)
