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As and when your business grows, so does the need for skilled individuals who can help you achieve your goals. Freelancers can be an ideal solution because you get to save a lot of resources when hiring them, especially when compared to traditional employees.
That said, managing a team of freelancers presents some challenges that can throw you off if you aren’t prepared. Thankfully, it isn’t as hard a process as it used to be. Today, there are resources related to client management for freelancers and many more tools that you can take advantage of.
The fact is that the freelance industry is growing at a tremendous pace. Data from Grand View Research shows that in 2024, its global market size was about $5.58 billion. That figure is set to grow at a CAGR of 17.7% between 2025 and 2030. If you’re ready to scale up your operations as well, then get ready, because we’re going to cover all you need to know. Let’s get into it.
#1. Understand the Freelancer Mindset
Freelancers thrive on independence and autonomy, which are key reasons they choose this career path in the first place. To manage them effectively, it’s essential to embrace their mindset. Freelancers perform best when they have the freedom to structure their time and workflow.
So, keep this in mind when discussing work. As Upwork notes, 53% of Gen Z worked full-time hours as freelancers, and they will make up 30% of the workforce by 2030. This is also the generation that tends to enjoy more independence and control over their work environment.
In other words, realize that managing a team of freelancers also requires a mindset shift from your side as well. You’re going to be frustrated and stressed out if you think it’s going to match the managerial style for typical 9-to-5 office workers.
#2. Take Advantage of Management Tools and Resources
Effectively managing freelancers becomes significantly easier when you leverage the right tools and resources to streamline your processes. Even if you manage a single freelance employee, it can get surprisingly hectic. From the daily management of assignments and reviews to ensuring work meets deadlines, there’s a lot of extreme pressure that you can face.
According to a recent report, 1 in 4 managers are ‘flat-out miserable.’ Emily Killham, a senior director at Perceptyx, also points out that when managers are hurting, it’s bad news for everyone.
What’s more, as a manager, it just takes one or two ‘tough-to-deal-with’ workers to make the entire experience a mess. Thankfully, we live in a time where there are tools and resources that can make a ton of difference. We mentioned freelancer management tools earlier, and you really ought to make use of them.
As Moxie notes, learning how to manage clients is often the most daunting part of running a freelance business. Tools that help with these aspects, whether they be for communication or task delegation, all help make your life that much easier.
#3. Focus on Simplicity
When managing a team of freelancers, a focus on scalability and simplicity will be essential to ensure your operations remain efficient as your business grows. Freelancers often come from diverse backgrounds and work on varying schedules, so creating systems that are easy to understand and replicate is crucial.
Moreover, a simple yet effective workflow minimizes confusion and reduces the time spent on onboarding and task management. You will quickly realize that it’s important to develop a system that can handle an increasing number of freelancers (as needed) without adding unnecessary complexity.
The exact details might vary from niche to niche, but, for example, the sort of workflow pipeline is one system to consider. How fast does finished work get sent out to clients? Is there too much back-and-forth in the revision process? If so, how can you streamline things?
Similarly, scalability requires you to think ahead and prepare for growth by implementing strategies that can accommodate more freelancers without overwhelming your current structure. This can require a good deal of patience, because growth always takes time.
McKinsey notes that even for highly successful companies, the initial growth stage can be slow and take more than five years to hit the $10 million ARR point. They do point out that after this first hurdle, most companies manage to reach over $100 in around four years.
Simplicity might sound like a bottleneck, but a clunky organization will slow you down far more quickly than anything else. So, even if you feel like you ought to be making several categories and convoluted rules, do so wisely. After all, you don’t want to be tripping over the system you created five years from now.
Frequently Asked Questions
1. How do I hire someone as a freelancer?
To hire a freelancer, start by defining your project needs and budget. Use platforms like Upwork or Fiverr to post your job. Review applicants’ profiles, portfolios, and ratings. Conduct interviews to assess their skills and fit, then finalize the contract and payment terms.
2. What does a freelance manager do?
A freelance manager oversees the hiring, coordination, and management of freelance workers. They ensure projects are completed on time and within budget, facilitate communication between freelancers and clients, and may handle contracts, payments, and performance evaluations to maintain quality and efficiency in freelance engagements.
3. What is CRM for freelancers?
CRM (Customer Relationship Management) for freelancers is a tool that helps manage client interactions and relationships. It allows freelancers to track leads, manage projects, store client information, automate communication, and analyze data to improve client satisfaction and retention, ultimately enhancing their business efficiency.
Essentially, scaling up a business that relies on a team of freelancers will certainly require some thought. As discussed, you have to understand the mentality of freelancers with their focus on flexibility and independence. At the same time, you also have to remember to keep the work structured and organized so that deadlines are met and you aren’t overwhelmed.
These are indeed challenges that exist, but the benefits in terms of costs saved often make this business model worth it.
