Freelance vs CDI: how to choose?

We are all familiar with permanent contracts, but what about freelancing? An open-ended contract allows talent to be hired within the company. Conversely, a freelancer, commonly called a “freelancer”, works with a much more agile contract and is committed to the completion of a project. As soon as his mission is over, the freelancer changes his environment. To deal with recruitment problems, how to choose between an employee on a permanent contract or a freelancer?

Freelance vs CDI: what are the differences?

To understand The differences between the status As a freelancer and as a permanent employee, you must first understand what motivates talents to choose paid employment or freelancing. Indeed, candidates choose their status according to their professional project and their desire for career development. They do not involve the same challenges for workers as for businesses.

Why hire a freelancer?

Because of our familiarity with the CDI, it is common to start our research on this type of contract by default. But if the need is urgent, a freelancer could be more suitable. For some digital jobs, it would only take 4 days of research, compared to 49 for a permanent profile (not including the 3 months of notice provided for the termination of an employee contract).

This significant time difference is explained by:

• a specialization in highly qualified expertise
• neutrality and an external perspective on the project
• adaptability and the ability to be quickly operational in new environments
• pricing that is more easily measurable by the daily rate or the fixed price per precise deliverable, without adding contributions or social security contributions.

In short, a freelancer is the ideal talent when you encounter a specific problem that requires the intervention of a specialist in the subject.

Why recruit an employee on a permanent contract?

This contract, well known to all, is still in France. For good reason, the permanent contract is a historic contract and often involves a strong and prolonged commitment to the company. Indeed, it is more natural for an employee on a permanent contract to be committed to the long term.

Thanks to the exclusivity of a talented employee, you benefit from his full attention to your company's project. He focuses full-time on your business and will promote the confidentiality of information. Moreover, his involvement is strengthened, if he develops a sense of belonging for your values and your corporate culture. In this way, a permanent employee will naturally position himself as a brand ambassador and will be more involved in your long-term growth.

It is therefore necessary to think carefully and frame your needs, your goals and impact of these recruitments on the evolution of the company. A talent on a permanent contract is more likely to stay in a company for a few years. Also, it is necessary to consider your possibilities of evolution, whether in the context of your missions or your position. Finally, then Only one employee out of 3, considering starting a freelance career, you will need to be able to meet the expectations of talents to offer them a sufficiently fulfilling work environment.

How do you identify the profile you need?

To answer this question, you need to identify the most important criteria in your search. Here are three areas for consideration:

Recruiting & onboarding time

How much time do you want to devote to finding the ideal candidate and to deepening their integration into your company? The answer to this question will very quickly guide the talent profile that corresponds to your search.

Indeed, the research and onboarding time involve three expectations:

• the expertise and/or personality of the candidate : if your need is urgent and your priority lies first and foremost in the execution of the project, then the profile of a freelancer may be more appropriate. On the other hand, if you need long-term expertise and are ready to wait for find a candidate who will be involved in your company for the long term, so a permanent profile would be more appropriate.
• the availability of the candidate and his speed of execution when taking up a position : a self-employed person is, by nature, better able to respond to urgent needs and to adapt quickly to challenges because he is regularly confronted with very different problems depending on his clients. Conversely, a permanent profile generally has a certain amount of time, at the beginning of taking up a position, to develop skills and/or fully immerse themselves in the challenges of the company.
• administrative management of the contract : collaborating with a freelancer is quite simple for small businesses because this talent already has self-employment status. Thus, you will only be concerned with the invoicing of his service and the payment of the agreed rate. Of course, this is different for large groups where the question of the framework contract can greatly complicate the signing of the mission. To overcome this difficulty, third party companies such as Beager takes care of being referenced by large groups and thus avoid this process for you.

Budget and financial investment

How much money do you want to invest to meet your needs? Are you considering allocating an annual budget or paying for the deliverable? In the collective mind, it is very common that freelancers are better paid than permanent employees. However, this does not mean that the cost is higher for businesses.

The challenge here is to clearly define how you want to invest this amount and the financial consequences of such an investment for your business. In fact, if the TJM of a self-employed person seems high to you, remember that this amount allows you to benefit from an facilitated breach of contract and a lack of notice. In addition, the price of a self-employed person corresponds to the final amount that you will pay him. In contrast, recruiting an employee involves additional expenses (contributions, expenses, social benefits, materials, premises, etc.) to offer him an operational and pleasant working environment.

Contracting on a permanent contract or as a freelancer therefore does not involve the same expenses. Being considered as a “purchase of intellectual services” in all companies, self-employed persons will sometimes have to be contractualized with the Purchasing Department.

Management and talent management

Unlike permanent contracts placed under the authority of their manager, freelancers are professionals with whom no relationship of subordination is legally authorized. The subject of hybrid teams then arises: how to manage talents with different contracts?

The COVID period has caused a real search for meaning on the part of candidates and reinforced the attractiveness of freelancing. Thus, many questions arise for companies that have hitherto not been concerned with new trends in the workplace. These talents are real assets for your business but did you anticipate the impact for your team? Indeed, freelancers are used to great adaptability and are looking for greater flexibility at work. They will not always be subject to the same hours, will require more flexibility and employees may have to question their own situation.

In addition, working with freelancers implies logistical and financial monitoring of the mission, mainly for those who work under management. In this context, if you really want to work with these profiles, you will have to adapt your internal processes to be able to facilitate these collaborations.

Talent side: Advantages of freelance vs permanent contracts

Freelance vs permanent contract: Freedom of missions vs stability of a structure

When comparing the status of freelancer with that of a permanent contract, it is crucial to analyze the aspects of professional freedom offered by each one as well as the stability they provide.

Freedom of missions : Freelancers benefit from a great deal of freedom in choosing their missions. They have the opportunity to select the projects that best fit their skills, passions, values and professional goals.

Stability of status : On the other hand, the permanent contract offers financial and professional stability that the status of freelancer does not always guarantee. Employees on permanent contracts benefit from a regular salary, social security contributions paid by the employer, as well as benefits such as paid leave and insurance. For example, an employee on a permanent contract in an IT company benefits from job and income security, which makes it easier for him to plan his financial and personal future.

Freelance or permanent contract: Is the solitude of freelancing a myth?

The issue of loneliness is often raised when freelancing as opposed to working as an employee on a permanent contract.

Autonomy and isolation : Freelancers often work alone, which can lead to feelings of isolation. However, this loneliness is not necessarily negative for all self-employed people. Some people enjoy the peace and freedom of working at their own pace, without the distractions of an office environment. For example, a freelance writer can find inspiration and focus in a quieter environment, allowing them to produce high-quality work.

Networking and community : Although freelancers often work independently, they also have the opportunity to connect with other professionals in their field through social networks, networking events, collaborations, or partnerships.

Administrative management: autonomy or the comfort of internal procedures?

Administrative management is a crucial aspect of freelance or paid work, and it can vary considerably depending on professional status.

Administrative autonomy : Freelancers are responsible for their own administrative management. They must therefore manage their invoices, contracts, tax returns and social security contributions. While this is an additional burden, it also provides freelancers with a high level of autonomy and control over their business.

Comfort of internal procedures : On the other hand, permanent employees often benefit from the support of a human resources department and well-established internal procedures to manage their administrative tasks. This can provide them with some comfort and peace of mind as they can rely on the assistance of professionals to resolve issues.

So, freelancer or permanent contract? The answer is not always easy. This means asking yourself the right questions and determining the criteria that are most important to you: the recruitment deadline, the budget and/or the ability to manage talent diversity. This choice also questions your ability to best meet the needs of talents, whether they are self-employed or employed. Are you ready to take on this challenge?