Why you should avoid hiring Freelancers on Hourly Basis.
With the advent of startups and other small entrepreneurs, employing someone on hourly basis has become a common norm these days, as it becomes easy to find someone and even the pay rate is less. A normal employee may not earn any overtime pay if he works more than the defined hours, but this is not the case with an employee who works on hourly basis. You cannot really completely rule out if an employee who works hourly is being paid less or more, as it depends upon the work he does and time he puts in.
But the question arises, is it a good option to hire someone on hourly basis? Although hiring someone on hourly basis has its own advantages, like the person is receptive to long working hours, it depends on the tasks assigned etc. However, a person working on hourly basis is difficult to manage. The hourly staff may have their own schedules and it may become difficult to keep an eye on the work they are doing which results in mismanagement, as you don’t know how much time they are really putting towards a defined task, or even it becomes difficult to arrange the work schedules with them as they would like to work on their own schedule, which in turn affects your productivity.
If you have to micromanage the employee and count the hours he/she is spending on the chair doing his/her work, then it is not a good sign, especially, for employers who are just beginning their work. This may be good at a later stage but at early stages you will need someone to whom you can delegate your work and make them run with the time. Hourly basis may work for interns or people who are doing clerical or low level jobs as they may or may not stay for longer period of time or they are just looking something to fill up the space.
Therefore, it may be concluded that hiring an employee on hourly basis may cost you more as you have to pay him according to the hours he has put. Secondly, you really don’t know how much time he has been spending on each task as it is difficult to check the time commitment, and last but not the least, you cannot define a proper work schedule with them. So, it is always advisable to work out the challenges and make a decision based on the work and responsibilities. You cannot let workers spend their time counting hours.