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HomeHome Based BusinessWhat is a Freelancer Management System (FMS)

What is a Freelancer Management System (FMS)

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These days, organizations belonging to diverse industries and sizes can be found to hire self-employed professionals and freelancers to undertake projects. This, in turn, has necessitated the need for an efficient and cost-effective management for such external employees. It ranges from onboarding to assigning project work and final payment. This is where Freelancer Management System can prove to be useful.

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What is FMS?

It is rather termed to be a cloud-based solution to assist businesses to manage effectively their external resources. Such systems generally include contracting, onboarding, billing, payment solutions and project management. It is also known as ‘Freelance Management Software’, ‘Freelance Management Solution’ or ‘Freelance Management Platform’.

Who requires implementing such a system?

A viable technical solution will be essential for companies that collaborate/manage with 10 or more freelance employees, either regularly or permanently. Setting it up ensures greater transparency concerning external employees. It becomes easier to know who is working on which project and on what budget.

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Which departments can benefit from its implementation?

  • Finance: It allows storing invoices as well as making payments within a single window.
  • PR, Marketing & IT: It is meant to manage onboarding freelancers, monitor different projects as well as check availabilities.
  • Law: It allows monitoring constantly freelancers’ employment status and prevents compliance risks.
  • HR: It helps generate standardized contracts, storing them within the same software solution.

Functioning

This system rather functions like a central platform allowing organizing all related activities related to freelancers. It also supports a few functions based on the individual department or organization’s specific needs.

  • Contract preparation & signing (electronic signature)
  • Integrating freelancers
  • Talent pool creation
  • Storing documents & contracts
  • Monitoring project status
  • Project assignment
  • Making payments
  • Invoice management
  • Report creation expenses made for external resources
  • Tax form storage

Freelancer Management System & the advantages offered

1. Standardization & compliance assurance:

Without implementing this system, freelancers get integrated within the organizational procedure through different channels. It may range from Excel spreadsheets to telephone calls and emails. But lack of standardization will mean no guarantee being offered on complying freelancer onboarding. Also there will be no assurance of signing of the legally correct contract. With such standardized procedure not being in proper place only exposes the organization to facing unwanted legal risks. But having the system in place ensures proper integration of freelancers in a compliant, standardized and scalable way.

2. Enhance productivity & save time:

Enhance productivity & save time FMS system

Manual method is not only complicated but also is wastage of precious time, energy and money. Therefore switching onto the FMS system can help your organization to achieve significant increase in work efficiency when dealing with external partners.

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3. Ensuring greater control & transparency:

This system when properly implemented allows your business to have a complete overview of the freelancers existing in your company’s network. You can obtain easily searchable freelancer database with crucial information. It includes work histories, rates, contact details, etc. Getting quick access to such vital information allows you to work smoothly. It also includes developing the capability to save money, work much faster, close skill gaps present and ensure business compliance.

4. Improving external employee & company relationship:

Freelancers are also human beings and do prefer to be treated well just like any full time employee. Fast payment combined with seamless onboarding is essential if you desire to attract and retain highly skilled freelancers. This is crucial to developing and strengthens positive, long-lasting company-freelancer relationship.

Thus implementing the freelancer management system is sure to help your business to grow faster and enjoy scaling greater heights quickly.

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