What is a Freelancer Management System?
A freelance management system (FMS) is software that helps businesses find, hire, and manage freelancers all in one place. It covers everything from the first step of finding the right freelancer for a job to making sure they get paid once the work is done.
An effective FMS makes it easier for companies to communicate with freelancers, manage their projects, and handle payments smoothly. By using this software, businesses can keep everything organised and make working with freelancers simpler and more efficient.
How does a freelance management system differ from a managed service provider?
An FMS and a managed service provider (MSP) both help organisations with their freelance and temporary workforce, but they work in different ways. A freelance management system enables your business to directly handle everything related to freelancers. It gives companies full control over managing freelancers and their projects.
On the other hand, an MSP is often a separate company that takes over the entire process of managing temporary workers for you. In short, a freelance management system puts you in charge, while an MSP does the work for you.
Why do companies turn to freelance management systems?
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 systems to manage their rapidly growing workforce, replacing legacy methods like Manage Service Providers (MSP’s).
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.
| Aspect | Employee | Independent Contractor |
|---|---|---|
| Control and supervision | Direct control over how, when, and where to work | Freedom to set their own schedules and methods |
| Payment | Regular wages; taxes withheld by employer | Paid per project; responsible for their own taxes |
| Benefits | Health insurance, retirment plans, paid leave | Must arrange their own benefits |
| Termination | Often requires notice and may include severance | Can usually be terminated at any time without benefits |
| Tools and equipment | Provided by the employer | Typically use their own tools |
Help hiring freelancers online
An FMS is also a fantastic solution for helping your business hire multiple freelancers 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 an FMS 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 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 can bring to your business
YunoJuno is the most trusted solution to find, hire, manage and pay contractors in 150+ countries. Our platform, complete with an elite marketplace of 100,000+ industry vetted contractors, combines a Freelancer Management System with integrated sourcing, ensuring reduced costs, accelerated hiring times, and protection against misclassification.
YunoJuno simplifies onboarding, contracts, and payments, consolidating everything into an all-in-one platform. No more juggling between systems, outsourced processes, or spreadsheets. Loved by HR, Hiring Managers, Finance, and Legal Teams, our real-time reporting and insights provide visibility across your entire global workforce.
