Freelancers Are Great, but Are They Right for Long-Term Contracts? The Facts

Table of contents

TL;DR: Freelancers can help you scale your business cost-effectively, but not every role or project is suited for long-term freelance contracts.

 

Summary

Freelancers are a great way to scale your team while reducing the costs of hiring full-time staff. However, before assigning long-term roles, it’s worth considering whether a full-time hire might offer more stability, continuity, or alignment with your company’s goals.

When you need extra hands on deck, hiring freelancers can feel like a no-brainer. They’re fast, flexible, and budget-friendly. But what happens when you need someone to stick around a little longer… say, three to six months or more? 

Are freelancers really suited for long-term roles, or is it smarter to hire full-time?

The rise of remote work has made it easier than ever to scale with freelancers. Still, not every project or position is a good match for long-term freelance contracts. In this article, we’ll break down when it does make sense to go the freelance route, and when a full-time hire might be the better choice.

Why Freelancers Are in Demand Today

One word: flexibility.

Freelancers let you bring in the exact skill set you need, exactly when you need it. This is without the overhead that comes with hiring someone full-time. You’re not obligated to provide a long list of employee benefits, office space, or cover payroll taxes. You’re simply paying for the outcome — the product or the solution you need.

In a fast-moving business landscape, that’s a big advantage. Whether it’s a landing page you need built by Friday or a marketing campaign to be used for the upcoming quarter, freelancers help you stay lean and agile.

Even major companies rely on freelancers to move faster:

  • Google has more freelancers and contractors than full-time employees (New York Times).
  • GoPro, BBC, and Intel regularly use freelancers for design, marketing, and tech roles.

But Can Freelancers Handle Long-Term Projects?

Yes. In fact, about 36% of freelancers hold long-term positions. Many of them prefer this setup because it offers steady work and a more secure income.

But most freelancers do not begin with long-term agreements. They often start with a short-term gig which lasts anywhere from a few weeks to under three months. If the collaboration goes well, that initial project can lead to additional work or an ongoing role. This might involve a new long-term contract or an open-ended agreement.

Now that we know that freelancers can take on long-term roles, the question is: what should you consider before hiring one for an extended position?

5 Traits of Freelancers Who Succeed in Long-Term Roles

Not all freelancers are equipped to sustain a long-term commitment. So, if you’re looking for someone who can stick with you over time, here are the key traits you need to look for:

  • Good Communicator – They’re straightforward about timelines and expectations. No sugar-coating. They’ll let you know if something can be done, and if not, they’ll offer realistic alternatives. Strong communication also means they collaborate well with other contractors or team members.

 

  • Proven Expertise – You don’t need someone with a massive portfolio, but they should clearly know what they’re doing and be able to show it. The best long-term freelancers aren’t always the flashiest, but they consistently deliver high-quality work.

 

  • Fair and Sustainable Rates – You’re not looking for the cheapest option; you want a freelancer whose quality reflects their rate. Of course, their rates should also fit within your budget. 

 

  • Availability – It’s normal for freelancers to juggle two to four clients at a time, so be sure to ask if they can commit to your project’s time requirements.

 

  • Professional Attitude – A long-term partnership depends on more than just skills. Look for someone who genuinely values your vision and respects your project. That means being proactive, respectful, and easy to work with.

When to Hire Freelancers

Today, everything moves fast. Businesses can only keep up if they’re equally agile, lean, adaptable, and able to pivot quickly. You can achieve this with a large workforce, but hiring full-time employees isn’t always the most cost-effective option. That’s where freelancers come in. They’re more affordable and come with less risk.

But, as tempting as it may be to build an entire army of freelancers to scale your operations on a leaner budget, the real question is: does it actually make sense to rely on freelancers for the long term?

1. You Need Ongoing Help, But Not a Full-Time Hire

Sometimes, you need someone to fill a role, but that role doesn’t require a full 40-hour workweek. Maybe you just need someone to respond to customer queries on your Shopify store for 15 hours a week. It’s consistent work, but not enough to justify a full-time hire. In this case, a freelancer is the perfect fit.

Here are a few examples where hiring a freelancer makes sense:

  • A SaaS brand hires a freelance writer for monthly content.
  • A design studio keeps a UI freelancer on call for seasonal projects.
  • An eCommerce brand uses a virtual assistant during high-demand months.

2. You’re Scaling and Need Flexibility

Fast growth often brings changing needs, and full-time hiring can’t always keep up. Freelancers let you scale your team on demand. Bring them in for specific tasks, extend their contracts if needed, or pause when budgets tighten.

3. You Need Specialized Skills for Short Phases

Some needs are project-specific: a rebrand, a dashboard, or a Q4 ad campaign. Hiring a full-time employee doesn’t make sense for short-term initiatives. A freelancer with niche expertise can help you move faster and deliver better results without the long-term overhead.

4. You Need to Move Fast

Hiring full-time employees takes time. It often takes several weeks if not a whole month or more. The process includes sourcing, interviews, and onboarding. Freelancers, on the other hand, can start within 24 hours or as soon as you both agree on terms. That’s ideal for last-minute campaigns, product launches, or urgent fixes.

5. You Want to Trial a Role

Freelancers are great for testing new roles. Think your company might benefit from a marketing coordinator to boost your online presence, but don’t really want to commit to a full-time hire just yet? Start with a freelancer.

6. You Want Access to Global Talent

Freelancers give you access to talent worldwide, which is ideal for round-the-clock workflows, language-specific content, or simply expanding beyond your local talent pool.

7. You Value Outcomes Over Hours

Not every job needs a 9-to-5 setup. If you care more about results than hours tracked, freelancers are often more efficient and require less management.

When a Full-Time Hire Might Be the Better Option

Yes, freelancers offer flexibility and can save you a lot of time, especially during the hiring process. However, full-time employees can be just as effective, if not more so. There are still situations when hiring a full-time team member is the smarter long-term choice. 

Here’s when it makes more sense to go the traditional route:

1. You Need Someone Fully Dedicated to Your Team

Freelancers often juggle multiple clients and projects, so they won’t be able to dedicate all their working hours to you. This means that if your role requires focused attention and quick turnarounds, a freelancer may not be the right fit.

2. The Work Requires Deep Company Knowledge

Some roles benefit from long-term familiarity with your product, customers, and internal processes, especially in areas like operations, customer success, or team leadership.

3. You’re Building for the Long Haul

Full-time employees are more likely to grow with the company. If you’re looking to invest in someone who will evolve with your business, hiring a full-time employee is often the better choice.

4. You Want More Control and Oversight

Full-time employees are easier to manage directly. You can define their hours, set workflows, and integrate them more closely with the rest of your team.

5. The Role Impacts Company Culture

If you’re hiring for a leadership or public-facing position, full-time staff are more likely to embody your brand values and actively contribute to team culture.

6. You’re Okay With Spending More Upfront

It’s worth investing in a full-time hire if you’re aiming for higher retention rate, more consistent output, and most importantly, someone who will grow with your company.

4 Things to Consider when Hiring a Long-term Freelancer

Once you’ve decided a freelancer is the right fit, the next step is to ensure the setup supports long-term success.

Time Zone and Communication

Will they be available during the hours you usually need them? Or will you be able to communicate with them during your work hours? Smooth async collaboration is possible, but only with aligned expectations around response times. Teams working with remote freelancers often cite time zone management as one of their top collaboration challenges.

Rate Stability

You can expect freelancers to raise their rates (mostly on a yearly basis) for various reasons. Some may demand higher pay as their skills and value increase, or as their portfolios grow and project scopes expand. 

That’s normal, but you’ll want to discuss long-term pricing structures or retainers upfront. A Payoneer survey found that 41% of freelancers increased their rates in 2023 due to the rising cost of living.

Reliability

A reliable freelancer won’t just tell you they’re reliable. It will show in their work. You can check client feedback, see how many ongoing contracts they have, or review the responsibilities they’ve been trusted with in the past. Freelance platforms like Upwork or Toptal highlight these details for employers to see. These are important trust indicators.

Security and Confidentiality

Security can be a concern when a freelancer handles sensitive information such as codebases, customer data, or marketing strategies. Naturally, you want this information to remain within your company. 

Asking your freelancer to sign a non-disclosure agreement (NDA) is an important step to protecting your business. If you’re using freelancing platforms, most of them offer built-in tools for secure file sharing and communication.

How to Manage Freelancers Like Long-Term Partners

Working with freelancers is a two-way street. While you expect them to deliver great results, you should also understand that they have their own expectations of you. To build a successful long-term partnership, it helps to know what freelancers need from you as a client.

Onboard Them Properly

Just like employees, freelancers perform better with a good start. Introduce them to your business, its vision and how you want things done. Provide any house rules if needed. Show them the tools that they’ll need to use, the guidelines they should follow, and workflows that have proven effective within your business.

Give Constructive Feedback

Feedback strengthens the relationship between a freelancer and a client. It should be given regularly, especially during the first few days or weeks. Feedback loops help freelancers learn and adjust to your preferences, processes, and goals more quickly. Consistent communication is one of the top predictors of freelancer retention and quality output.

Build Incentives and Continuity

Motivation drives productivity and consistency. If your freelancer delivers quality work, make it a point to recognize their efforts. A sincere compliment can go a long way, and small gestures like offering retainers, performance bonuses, or simply being a respectful, appreciative client can build loyalty and encourage them to make your projects a priority.

Provide Clear Project Specifications and Documentation

Be detailed with deliverables and timelines. Tools like Notion or Google Docs can centralize this information, reducing confusion as your collaboration grows. Scope creep, which is often hard to spot early on, can derail progress and complicate your relationship with your freelancer.

In short: If you want freelancers to show up like partners, treat them like partners.

5 Common Pitfalls with Long-Term Freelancers

Freelancers can be a powerful asset, but there are a few caveats to keep in mind, especially when contracts extend beyond a few weeks.

1. Quality Can Vary

A polished portfolio doesn’t always translate to consistent delivery. It’s also important to be wary of unauthentic portfolios. To avoid falling victim to this, start with a paid trial to evaluate their work style, communication, and reliability. 

2. They Might Leave Mid-Project

Unlike full-time employees, freelancers aren’t bound to your company. Without a proper contract, they can walk away at any time, even mid-project. Clear contract clauses and a healthy working relationship can help reduce this risk.

3. Security Risks

Freelancers often need access to tools, files, or sensitive company data. If that’s the case, it’s essential to have an NDA in place to protect your information.

4. Limited Cultural Fit

Company culture plays a big role when it comes to effective collaboration. However, freelancers may not always mesh well with your team’s values or communication style. This becomes especially important for roles involving stakeholders or customer-facing work.

5. Lack of Legal Protections

According to the IRS, businesses must carefully distinguish between independent contractors and employees to avoid penalties. This is particularly important in long-term arrangements. To protect yourself from legal issues or possibly paying a hefty fine, it’s worth consulting legal or HR experts early on.

It’s Not Freelance vs. Full-Time: It’s About Fit

Freelancers, with the right setup, can become reliable, long-term contributors to your team.

The key? Be intentional. That starts with knowing your own goals and expectations. Once those are clear, choose freelancers who align with them before investing in the relationship. It’s also essential to build structure with clear workflows, communication channels, and realistic timelines. Trust, more than anything, will determine your long-term results.

That said, not every role is suited for freelance work, and freelancers won’t always be the right fit for long-term positions. Some projects require in-house talent that can easily adapt to company culture, embrace deep collaboration, or commit full-time in ways freelance setups may not support.

Ultimately, it’s not about choosing one over the other: freelance or full-time. It’s about understanding what your business and project truly need. Freelancers offer agility. Full-timers offer continuity. The smartest strategy? Knowing when and how to use both.

Ready to find the right talent for your team? Whether you need flexible freelancers or dedicated full-time employees, we can help you make the best hiring decisions. Contact us today to get started.