Pros and Cons of Hiring on Fiverr, PeoplePerHour, and Upwork

Freelancing platforms offer you numerous opportunities to hire qualified talent. Learn the cons and pros of hiring remote on Fiverr, Upwork, and PeoplePerHour.
REMOTO WORKFORCE Team I Updated on - May 7, 2022

Freelancing, a modality of independent work, offers numerous opportunities to hire qualified, diverse, and inclusive talent in 2022.

Freelancing marketplaces, such as Fiverr, PeoplePerHour, and Upwork, have become essential resources to get remote employers. Nonetheless, hiring through freelancing platforms offers advantages and disadvantages that you may want to know.

We’ll tell you everything about hiring remote talent through freelancing marketplaces.


What are Freelancing Platforms?

Freelancing marketplaces are platforms where you can hire remote workers known as “freelancers.” Typically, these freelancers are from worldwide and have different expertise and skills. Therefore, freelancing marketplaces, such as Fiverr, PeoplePerHour, and Upwork, simultaneously operate as recruitment and employment platforms.

One recurrent question among employers, known as “clients” and employees or “freelancers,” is payment security. But what happens when a freelancer doesn’t manage to deliver a product or a service? And what happens when a client is reluctant to pay a freelancer?

Platforms generally secure payments through an Escrow system. By utilizing this system, the platforms retain the money. As an employer, you‘ll be able to pay a freelancer only if you authorize the platform. In addition, if the client doesn’t want to pay, freelancers can present a dispute and get the money for their work.

Generally, freelancer platforms are used by recruiters to hire virtual assistants. Likewise, you can use freelance marketplaces to recruit call center representatives. Do you want to have more ideas about what job positions you can hire through Fiverr, PeoplePerHour, and Upwork? We suggest you check this page.

We recommend you watch this video to learn the what kind of challenges freelancers face when using freelancer platforms such as Fiverr, PeoplePerHour, and Upwork.


Pros of Hiring on Fiverr, PeoplePerHour, and Upwork

Hiring through freelancing platforms reports several benefits. We recap these benefits for you:

Save costs: you can save costs by hiring freelancers through Fiverr, PeoplePerHour, and Upwork. You can expect to save, even at a higher hourly rate, up to 30% annually. Also, you don’t need to pay for social security. Since a freelancer is a remote employee, you will also reduce expenses related to offices.

Risk reduction: employers’ risk is reduced since freelancers are not properly employees. They assume responsibility for their social security. If their performance is not optimum, you can close the contract with them on these platforms, leave a review, and continue hiring your ideal freelancer.

Access and quality: you’ll access the most qualified talent globally. Furthermore, freelancer treats their work as a business in a strict sense. As a result, you’re relating to serious business people who will offer you high-quality work.

In this video, you can learn how to hire the right freelancer for your business.


Cons of Hiring on Fiverr, PeoplePerHour, and Upwork

Hiring cons through freelancer platforms also have disadvantages that you may want to know:

Overworked freelancers: an independent freelancer is always trying to expand their businesses. So, it’s expected that a freelancer has numerous jobs. For instance, an experienced freelancer can deal with thirty to forty clients monthly alone.

To handle the workload, they incorporate outsourcing strategies in their businesses. Therefore, when you hire an experienced freelancer, you relate not with a person but with a growing company.

In inexperienced freelancers, multitasking, overworking, and burnout are every day. In this case, be sure you’re hiring the right freelancer. In addition, it would be helpful to check their experience and skills, mainly time management, effective communication, problem-solving, and customer service.

Freelancers don’t admit supervision: unless you hire an employee through Upwork, a time tracker feature that allows you to check how your freelancer is advancing on your project, freelancers don’t admit supervision.

Since they work mainly for projects, it’s assumed that they have complete autonomy to develop tasks and complete projects. Therefore, if you need to hire a person that needs to be supervised by you, it’s better to hire a remote employee.

A freelancer is rarely engaged with your company: Unless you hire experienced freelancers who understand how important it is to align themselves with your values and interests, you’ll see that regular freelancers avoid engaging with you or your company.

The primary purpose of a freelancer is to keep you as a client since they’re expanding their business. If you want engaged people in your business, hiring a remote employee is better.


Related Posts at Remoto Workforce US & Canada:

Related Posts at Remoto Workforce US & Canada:

Read more content from the author - Vivian A. Martínez

Watch our latest video


About Remoto Workforce

Remoto Workforce strengthens small- to mid-sized companies in the US and Canada by offering top-tier outsourced recruiting and hiring of remote employees in Mexico.

See why US and Canadian companies outsource remote workers

How the Remote Recruiting / Hiring Process Works in NorthAmerica

Benefits from an Outsourcing Partnership for US/Canadian Businesses

Get all the answers on Remote Recruiting and Hiring