In a landscape traditionally dominated by in-house roles, human resource (HR) freelancers strive to carve out a professional niche, offering a unique blend of expertise and adaptability. The life of an HR freelancer is a narrative of independence — a tale where each project is a chapter in the ever-evolving story of human capital management. From grappling with initial challenges to redefining conventional roles, these individuals weave an account of the changing contours of the modern workforce.
What’s it like for HR leaders who choose to freelance?
“This decision is influenced by entering a different phase in life, one where it is imperative to strike a balance among various personal priorities that may have taken a back seat due to the all-encompassing nature of a demanding professional career. Freelancing, in this context, emerges as an appealing option, offering the flexibility to determine the extent of involvement, select preferred collaborators and engage in work aligned with one’s interests,” points out Nihar Ghosh, senior HR leader.
The scenario (freelance) usually emerges, when organisations, with financial and budget constraints are unable to afford full-time commitments, so they can still leverage the wealth of experience and insights from individuals on a freelance journey.
“This decision is influenced by entering a different phase in life, one where it is imperative to strike a balance among various personal priorities that may have taken a back seat due to the all-encompassing nature of a demanding professional career. Freelancing, in this context, emerges as an appealing option, offering the flexibility to determine the extent of involvement, select preferred collaborators and engage in work aligned with one’s interests.”
Nihar Ghosh, senior HR leader
Pointing out another advantage of being a freelancer, Subir Sinha, senior HR leader, says, “The biggest plus is that freelancers are answerable to themselves, and need not report to anyone. They enjoy the freedom to choose work to their own liking and utilise their time as they please.”
Diverse work opportunities, autonomy and freedom, option to work from anywhere, income potential, personal skill development, networking opportunities and entrepreneurial exposure are other positives of being on one’s own and freelancing.
What are the challenges faced by HR freelancers?
Despite multiple advantages, HR Leaders who choose to become freelancers face several challenges while building their brand and credibility.
“Building a client base is the biggest challenge,” opines Sinha. He goes on to explain, “Old friends and networking help, but a lot of effort is required to secure a repeat client.”
Anil Mohanty, senior HR leader, feels, “In the realm of HR, there is a perceived lack of support for independent practitioners, with promises of assistance often falling short. The initial assurances of support may not materialise fully, making the journey into independence challenging.”
Additionally, when one is on the other side of the table, negotiating contracts and pricing is extremely difficult and freelancers may end up compromising at various stages. “Meeting committed deadlines at times hampers work-life balance. Over and above these, managing all statutory and legal compliances also takes time. Needless to mention, one has to constantly upgrade one’s skills and keep abreast with the latest trends,” adds Sinha.
“Meeting committed deadlines at times hampers work-life balance. Over and above these, managing all statutory and legal compliances also takes time. Needless to mention, one has to constantly upgrade one’s skills and keep abreast with the latest trends.”
Subir Sinha, senior HR leader
While skills are transferable, the overall challenge lies in managing the intricacies of running a business. “Unlike the predictability of a fixed salary in a corporate job, entrepreneurship introduces financial uncertainties. The initial phase can be particularly demanding, with a potential struggle lasting six months to a year and a half. Despite the eventual stability that comes with time, every venture encounters ups and downs,” points out Mohanty.
Usually, SMEs, MSMEs and startups are a good bet for seasoned professionals who venture into freelancing. For larger companies, one has to compete with established players in the market who have domain expertise. So, unless one is capable of adding significant value, freelance opportunities may be hard to come by.
How is a freelance HR professional different from an in-house HR person?
The role of a freelance HR professional differs significantly from a traditional in-house HR role in terms of responsibilities, work structure and client interactions. First and foremost, “Freelancers have multiple external interfaces whereas in-house HR roles call for internal employee interface,” states Sinha. Additionally, networking is critical for a freelancer’s success whereas in-house HR personnel need not resort to extensive networking.
“Unlike in-house HR professionals, freelancers can provide unbiased recommendations, presenting ideas without preconceived knowledge of organisational preferences. While the final decision rests with the organisation, freelancers have the authority to propose what they believe is best, a freedom not typically enjoyed in traditional in-house roles where professionals may avoid initiatives they anticipate won’t gain approval,” believes Mohanty. This independence allows freelancers to offer a unique perspective and impartial recommendations.
“The uncertainty of receiving payments on time, especially in organisations with larger corporate structures, presents a considerable hurdle. The risk of consulting contracts being prematurely terminated due to organisational struggles adds an element of unpredictability.”
Anil Mohanty, senior HR leader
“Typically, organisations engage freelancers when they identify a deficiency within their in-house team that requires external supplementation,” asserts Ghosh. This recognition often stems from the realisation that there exists a gap in capabilities, knowledge, understanding, or wisdom, which, if filled by a full-time hire, may not be financially feasible at their current stage.
Ghosh believes that the rationale behind seeking external support is the acknowledgment of a capability gap that the organisation is unable to fill internally. Sinha is of the opinion that project-based work done by freelancers calls for a holistic knowledge of HR in all aspects of the function whereas in-house HR may be specialists.
Contrary to in-house HR employees, there is neither any employment guarantee for freelancers, nor do they have fixed earnings. Freelancers have to spend a lot of time meeting statutory compliances for which there is a separate cell in organisations.
Freelancers often operate as one-person entities without the aim of registering a company or adding staff. While the focus isn’t on building a career out of freelancing, professionals in this space are mindful of leaving a positive impact and ensuring that their work reflects the reputation they’ve built over the years. The emphasis is on the quality of work and the lasting imprint left behind in each engagement.
Moreover, the establishment of a sustainable career as a freelance HR professional doesn’t necessarily hinge on a specific number of assignments, as most individuals in this field aren’t driven by a desire to build a long-term consulting company. Rather, many choose freelancing to stay engaged and contribute their expertise without the intention of expanding into larger organisational structures.
“The motivation behind their freelance engagements lies in preserving their professional standing and ensuring that their body of work reflects positively on both themselves and the associated companies. For these senior professionals, the focus is on maintaining a balance between their professional contributions and personal aspirations, especially as they approach the latter stages of their careers” asserts Ghosh.
A couple of retainerships and project-based assignments are sufficient to establish oneself, but it does take time, and calls for perseverance and hard work. “One has to focus on getting repeat orders or projects and devote considerable time to business development, brand building and networking,” enunciates Sinha.
‘Profitability’ of freelance work in HR compared to a regular full-time HR position varies and is contingent on several factors. Freelance assignments offer cyclical returns, with earnings fluctuating monthly — sometimes abundant, and at other times requiring patience. In contrast, full-time HR professionals have consistent fixed earnings, which, in the long term, tends to balance out. It’s worth noting that some freelancers may surpass the income they would have earned in a full-time role, highlighting the potential for lucrative opportunities in the freelance sphere, albeit with a variable income structure.
One of the primary challenges faced by freelance HR professionals is receiving timely payments from clients, and this poses a significant hurdle. The dynamics change when freelancers find themselves awaiting payments.
A pay cycle challenge may arise in cases where clients view the freelancer more as a symbolic figure than a serious contributor, leading some professionals to decline such engagements. Additionally, caution is exercised in billing practices, with some freelancers implementing principles such as not committing to future work until the previous cycle’s bills are settled. Speaking from his own experience, Ghosh advises, “While the industry is generally cautious due to occasional stories of delayed payments, experienced freelancers can establish clear terms to safeguard against such issues. The focus remains on maintaining a balance between professional contributions and personal aspirations.”
The uncertainty of receiving payments on time, especially in organisations with larger corporate structures, presents a considerable hurdle. “The risk of consulting contracts being prematurely terminated due to organisational struggles adds an element of unpredictability,” observes Mohanty.
“In some instances, compromises on agreed terms may be necessary. However, it’s essential to note that there are companies that adhere to timely payment schedules. The key to overcoming this challenge lies in exercising patience and persistence, with the need for consistent follow-ups to ensure the fulfilment of payment commitments for the services rendered,” concludes Sinha.