HR Outsourcing

Hiring a Freelancer: Who, Where, and How Much to Pay?

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Many businesses are utilizing the skills of freelancers. The truth is, it’s cheaper, easier and more efficient to outsource jobs to individuals in other countries or through a freelancing website. These individuals usually possess the same skills as someone from the U.S, but they are willing to charge significantly less than Americans.

While outsourcing or hiring freelancers to do some of the extra work is fairly common, it can sometimes feel like a stressful experience. With issues including language barriers or trying to decide how much to pay your ‘employees,’ outsourcing can seem like a hassle.

Strangely enough, the rates for freelancers throughout the world is actually easier to understand than you may think.

Payoneer, a company that connects businesses with their employees all over the world to make the payment process easier, has released their annual freelancer income survey for 2015.

What They Found

Payoneer surveyed over 23,000 freelancers, across all 180 countries, to determine what the average hourly rate is among these employees. On average, they concluded that the average rate for a freelancer is $21/hour.

These findings were among six continents, with the biggest number of freelancers being located in Asia at 27%; 23% who were located in Latin America; Europe offered 19%; the Middle East had 15%; Africa had 14%; and North America was last with 2%.

On the other hand, the location of the clients hiring the freelancers was just the opposite, with North America coming first a 28%; Europe coming in second with 24%; and Africa and the Middle East tying last with 6%. This goes to show that outsourcing projects to other countries is occurring in North America much more than anywhere else.

About the Freelancers

Throughout the survey, Payoneer did some more digging about the freelancers who were providing their information. The survey found that almost 52% of freelancers were between the ages of 20 and 29; 29% were between the ages of 30 and 39; and a mere 1% were over the age of 60. There was also a large difference between the gender percentages, with 78% of freelancers being male and 22% being female.

Though the male to female rates were almost the same, some countries differed significantly. For example, Serbian females made $19 to the male’s $20; but in Pakistan, females made $22 to the male’s $20.

The satisfaction rate of freelancers varied between job fields, but for the most part, stayed between the 40% and 50% range of satisfied employees.

For example, IT & Programming employees were 48.7% satisfied, while writing and translating employees were 42.7% satisfied.

The survey also found that most freelancers work an average of 36 hours per week, but in some countries, they averaged higher hours than others.Kenya averaged the highest at 42.6 hours; India was also near the top with 37.4 hours; and Venezuela averaged around 36.7 hours. Countries such as Morocco and Tunisia stayed in the lower ranges, with 30.6 and 30.1 hours per week.

Freelancers were also questioned as to where they find work, with a whopping 46% who use online marketplaces. They also admitted to promoting their skills through social media, with Facebook taking the lead at 38% of freelancers who use this website; 14% who use LinkedIn to promote their skills; and only 1% use Twitter.

Outsourcing Jobs

If you’re considering outsourcing a job to a freelancer, this guide may make your decision on who to hire a lot easier. It’s also helpful to know what the average rate is for freelance employees, so that you’re not stumped when trying to negotiate a fair price with someone.

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