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Freelancers Are Not a Cost-Cutting Solution: Why Companies Need a Shift in Mindset

November 8, 2024 by
Freelancers Are Not a Cost-Cutting Solution: Why Companies Need a Shift in Mindset
Paolo Maria Pavan
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Paolo, why do you advise companies against using freelancers as a cost-saving measure?


When I tell companies not to use freelancers just to save money, it's because that mindset completely misses the point of what freelancing—and, more importantly, true talent—is all about. If a company is hiring freelancers purely as a way to cut costs, they’re treating people like commodities, not creators. And that approach is not only short-sighted, it’s ultimately self-destructive.


Here’s why.


First, freelancers aren’t a cheap alternative to employees—they’re specialized, independent professionals who bring unique skills and fresh perspectives. If a company is hiring freelancers just because they don’t want to pay full-time salaries or offer benefits, they’re reducing freelancers to a financial calculation. They’re not valuing the freelancer’s expertise, creativity, or ability to deliver high-impact results. That’s a waste of potential, and it’s disrespectful to the value that freelancers offer. In the long run, hiring cheap ends up being expensive because it sacrifices quality, innovation, and commitment.


Second, if you’re hiring freelancers just to save money, you’re missing out on the real advantage of freelancers: agility and innovation. Freelancers thrive when they’re brought in to tackle specific, high-impact projects—things that require creativity, flexibility, and a different kind of thinking. When you hire a freelancer, you’re not just filling a gap or outsourcing tasks; you’re tapping into expertise that can shift the needle for your business. But if you approach freelancers as a cost-saving measure, you’ll get transactional work, not transformational results.


Here’s another layer: when companies treat freelancers as a way to save money, they create bad relationships. Freelancers start feeling like they’re being used, not valued. They’re seen as disposable resources rather than partners in success. And here’s the catch—freelancers are smart, they know when a company is just cutting corners, and when that happens, they’ll give you the bare minimum, not the kind of work that creates lasting impact. The best freelancers? They won’t stick around, because they know their worth and won’t waste time on a company that doesn’t appreciate it.


I also say this because hiring freelancers for the wrong reasons—like cutting costs—often leads to inconsistent results. You might save money in the short term, but you’re likely sacrificing long-term stability. Hiring freelancers the right way, on the other hand, is about complementing your core team with talent that brings new skills, perspectives, and flexibility when you need it most. It’s about scaling with intelligence, not just shaving off expenses.


A company that hires freelancers purely for financial reasons is treating symptoms, not solving problems. What you should be doing is looking at freelancers as strategic partners—people who can help you innovate, grow, and evolve. When you focus on the cost-saving angle, you undermine that potential and, frankly, waste everyone’s time.


So, my message to companies is this: don’t cheapen the freelancer relationship by making it about saving money. You hire freelancers to bring value, to solve problems, to push your business forward. If you focus on cost alone, you’re not going to get the best talent, and you certainly won’t get the best results. Invest in freelancers as high-value assets, not cost-saving measures, and watch how that shifts the outcome.

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