What Is A Freelancer Management System (FMS)

These days, organizations belonging to diverse industries and sizes can be found hiring self-employed professionals and freelancers to undertake projects. This, in turn, has necessitated the need for efficient and cost-effective management for such external employees. It ranges from onboarding to assigning project work and final payment. There are many freelancing automated codeless testing tools that are available on the market with no experience required. This is where the freelancer management system can prove to be useful.

What is FMS?

It is rather termed a cloud-based solution to assist businesses in effectively managing 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 needs to implement such a system?

A viable technical solution will be essential for companies that collaborate with or manage 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.

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, and check availabilities.

Law: It allows constant monitoring of freelancers’ employment status and prevents compliance risks.

HR: It helps generate standardized contracts, storing them within the same software solution.

Functioning

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

1. Contract preparation & signing (electronic signature)

2. Integrating freelancers

3. Talent pool creation

4. Storing documents & contracts

5. Monitoring project status

6. Project assignment

7. Making payments

8. Invoice management

9. Report creation expenses made for external resources

10. Tax form storage

Freelancer Management System & the advantages offered

1. Standardization & compliance assurance:

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

2. Enhance productivity & save time:

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

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, and ensure business compliance.

4. Improving external employee & company relationships:

Freelancers are also human beings and 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 strengthening a positive, long-lasting company-freelancer relationship.

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