What is a Freelancer Management System?
Hiring freelancers is a cost effective solution to placing just the right talent to meet your business needs. It enables you to complete projects quickly without permanent commitments and overheads
With more than 2 million freelancers in the UK alone, it’s no surprise more businesses are looking to freelancer management platforms to manage their rapidly growing workforce, replacing legacy methods like Manage Service Providers (MSP’s).
| Old rule (2021 Independent Contractor Rule) | New Rule (Effective March 11, 2024) | |
|---|---|---|
| Basis of classification | Relied on a simpler, more straightforward approach that may not fully capture the complexity of modern work relationships. | Restores a multifactor "economic reality" test that considers a wider range of factors to determine employment status. |
| Legal consistency | Criticised for deviating from established legal precedent and potentially leading to more misclassifications. | Aims to align closely with longstanding legal precedent, offering more clarity and consistency in classification decisions. |
| Impact on workers | Concerns were raised that it might make it easier to classify workers as independent contractors, potentially denying them employment benefits. | Seeks to reduce the risk of misclassification, ensuring workers who should be classified as employees receive the benefits and protections that they're entitled to receive. |
| Guidance for employers | Provide a simpler framework for employers to classify workers, which could lead to broader interpretations and confusion. | Offers detailed guidance through the economic reality test, aiming to provide a clearer path for proper classification and reduce misclassifications. |
70% of executives believe they will engage more freelancers
Recent studies from BCG and McKinsey suggest that 90% of business leaders believe that a blended model of permanent and freelance workforces give them a competitive edge. 70% of executives also believe they’ll engage with more freelance workers than they did pre-Covid.
As the number of freelancers you manage grows, the need for a robust, compliant solution increases. With various routes into an organisation, you can quickly lose sight of your freelancer spend and with it your compliance obligations.
Help Hiring Freelancers Online
A Freelancer Management System (FSM) is the solution to helping your business hire multiple freelancers online at any time. It provides one single point for compliance, control and visibility over your spend. Giving your business the much needed control where you may have previously had none whilst replacing the traditional clunky MSP model.
With an FMS in place, you’ll have insight into accurate information, empowering your business to make better resource decisions. A great freelancer management system gives your business:
- All IR35 & SDC tax compliance is managed in one platform meaning you won’t have to have multiple 3rd party compliance partners.
- Insurance on all Outside IR35 contracts to the value of £100k
- Fast, regular payments to all freelancers and their associated recruiters, in their preferred currency and payment method
- A large database of freelancer contacts, allowing businesses to find new freelancer talent through your recruitment network.
- Real-time budget management, providing visibility and control to reduce admin, costs and sourcing overheads.
- Manage and store all contracts on one platform meaning no more paperwork.
- Automated onboarding and off-boarding workflows.
- Verified workplace identification compliance.
Business Benefits of a Freelancer Management System
Whilst we’re already across many of the benefits using a freelancer management system can bring businesses of all sizes, some of the key points to know are:
- Running essential compliance checks, IR35, SDC, as well as other necessary identification checks
- Gives businesses visibility and control over the end to end process of working with freelancers that includes; contracts, commercials, forecasts, approval flows and general tracking
- Ensures freelancers have signed all necessary legal and contractual documents whilst storing them in GDPR guidelines
- Sourcing and finding the right talent, at the right time, in the most efficient and cost effective way.
- Paying multiple invoices to both freelancers and suppliers.
- Management of your recruiter preferred suppliers list (PSL), tracking ownership and performance reducing costs.
- Admin heavy processes that are outdated and not visible to the business
Whilst we recognise traditional MSP’s still have a place, they can be slow and clunky, often taking weeks to onboard a freelancer into a business. Having a well-functioning FMS solves a multitude of problems for companies of all sizes, helping to streamline their processes, whilst reducing admin and payment headaches.
What YunoJuno Has brought To Businesses So Far
Our own platform, YunoJuno, brings many of these benefits to our clients already, enhancing their business with;
- 100% IR35 compliance within the platform
- 13% reduction in sourcing costs = saving over £250k so far
- A 98% record of positive booking feedback
- £100k insurance for every freelancer Outside IR35 contracts, provided by Zurich.
- Regular and reliable payments to all freelancers and their recruitment partners within 14 days
- 100% of freelancer identity checks, insurance and contracts are automatically verified and stored.
As the #1 Freelancer Management Platform in the UK, YunoJuno makes it easy for companies to source, manage and work with your freelancer workforce. We’ll provide your business with access to a marketplace of over 30,000 industry vetted creative and tech freelancers. This community is regularly reviewed to ensure quality, and when using the marketplace, you are supported by a talent team to help with sourcing and shortlisting.
If you have any questions or would like to understand how a freelancer management system can support your business, book a demo here.
