The research finding arrives as businesses increasingly turn to freelance workers to address problems finding permanent staff, Remote suggests; its researchers found that half (53%) of UK companies have increased their use of freelance workers over the last three years, and that a similar proportion (43%) of UK employers have turned to freelance workers due to difficulties in finding permanent staff.
However, almost half (49%) of businesses still rely on outdated tools to handle freelancer contracts and billing, according to Remote's research. Findings were published on 10 April.
Of course, HR leaders and employers should work to ensure that freelancers are paid on time, said Sharon Steiner, chief HR officer for the online marketplace for freelance workers, Fiverr. But the support that freelance workers receive should go beyond pay.
Steiner told HR magazine: “HR leaders have a clear role to play, and that support starts with inclusion. Late payments remain the number-one barrier to freelancing, with 37% of freelancers citing it as their biggest challenge in our workforce index. HR can make a real difference by advocating for streamlined payment processes, including setting standard net payment terms, automating invoice approvals and introducing penalties for late payments.
“But support goes beyond payments. It’s also about fully integrating freelancers into the company’s ecosystem: from using proper billing tools and standardising terms, to providing access to communication platforms and involving freelancers in project kick-offs.”
Read more: Freelancers plugging skills gaps rather than permanent hires
Pavel Shynkarenko, CEO of Mellow, an HR platform aimed at supporting freelancers, agreed that HR should work to create a fair and inclusive system for freelancers.
Speaking to HR magazine, he said: “HR should define how freelancers are brought into the company, what documents are needed, which departments need to be informed (legal, finance, etc), and explain why certain steps are important, such as personal data.
“Clarify where communication happens (e.g. Slack vs external tools), what information can be shared, and how integrated the freelancer will be in internal channels. Set rules on whether and when a freelancer can say they’re working with the company. Share the company’s mission and culture if the freelancer will be collaborating long-term.”
Researchers at Remote found that a third (36%) of UK businesses admitted to having misclassified freelance contractors.
Almost half (42%) of UK companies noted an increase in the freelancers they work with who are aged 55 and over.
Of those companies, 43% said they preferred working with older freelancers because of their experience, reliability and mentorship opportunities.
Read more: The future of work is freelance - here’s what HR needs to know
HR leaders should choose tools that are effectively help manage freelancers, added Steiner.
She said: “HR leaders should champion the adoption of modern, scalable freelancer management tools that handle everything from onboarding and compliance to contracts and payments. Sometimes, small cultural shifts, like recognising freelancers in team updates or celebrating their contributions, help build loyalty and foster long-term collaboration.”
HR leaders can also advocate for freelancers by identifying their challenges and gathering feedback, Shynkarenko advised, noting that this may be a challenging task.
Not having the right tools in place to manage freelancers could create unnecessary hurdles, added Paul Newsham, CEO of the Payroll Compliance Authority, a non-profit accreditor for outsourced payroll.
He told HR magazine: "Where companies may be looking to hire more freelancers, particularly in the light of greater responsibilities coming with the Employment Rights Bill, it would be a false economy if these new relationships are quickly soured due to poor HR practises on account of outdated tools. Bringing in appropriate tools is an investment for the future, and part of future proofing a business. Not having the right tools and systems in place may create hurdles, including potential legal issues where processes are not followed."
