What is a Freelancer? Distinctions, benefits, and challenges to keep in mind

In today’s fast-evolving job market, the term freelancer is becoming increasingly common. Whether you are an individual exploring flexible career options or an HR representative looking for alternative ways to collaborate with professionals, understanding what it means to be a freelancer is essential. But what exactly is meant by the term ‘freelancer’ and which characteristics distinguish this way of working from other options? Let’s dive into what it means to be a freelancer, the benefits and challenges, and why so many people are choosing this path.

What is a Freelancer?

A freelancer (commonly also referred to as ZZP’er in the Netherlands) is a self-employed individual who offers their services to clients on a project-by-project basis. Rather than being employed by a single company, freelancers work independently and are not committed to a long-term employer. Instead, they take on work from multiple clients, often across different industries or sectors.

Freelancers can work in various fields, including but not limited to:

• Writing and content creation
• Graphic design
• Web development
• Marketing and social media management
• Translation and language services
• Photography and videography
• Project and Change Management
• Consulting

The freelance work arrangement provides a great deal of flexibility and freedom. Freelancers can choose which projects to take on, set their own rates, and often work from anywhere.

Typically a freelancer will start by taking on projects in their area of expertise and build up a portfolio over time that grows and showcases their unique skills and added value to the projects they would like to take on.

The important thing to remember is that while some of the fields freelancers work in may also have options for employed work, a freelance project should not include the same tasks as those being performed by an employee of the company. Additionally, the freelancer works independently to meet the client’s requirements, whereas an employee works under a clear management structure.

Key Characteristics of Freelancers

Freelancers differ from traditional employees in several key ways:

• Independence: Freelancers operate as their own bosses. They manage their own schedules, workloads, and rates, giving them full control over their careers. This means that when accepting an assignment the freelancer also independently arranges the tools that they need to complete the project, as well as handling their own insurance, pension, and tax arrangements.
• Project-Based Work: Instead of working full-time for a single employer, freelancers take on specific projects for clients. These projects have clear start and end points. A freelancer can even work on multiple projects at once if that can be managed within the agreed upon requirements of each assignment.
• Flexibility: Freelancers often enjoy greater flexibility in terms of when and where they work. They might work remotely, from home, or while traveling. They also get to choose their own working hours. Since they agree to fulfill specific project requirements, rather than be in attendance during normal office hours, they are able to fill in their time as they see fit. This flexibility can be an especially great fit for individuals who find their most productive hours don’t always coincide with a normal 9-to-5 work day.
• No Long-Term Commitment: While freelancers may build long-term relationships with clients, their work agreements are usually based on individual projects with clear parameters and start and end points. Although it is possible for a freelancer to take on another project for the same client, it is important to watch out for false self-employment (schijnzelfstandigheid) which can occur if the relationship becomes too prolonged and more similar to that of a traditional employee.

While these are some of the highlights that set freelancers apart from traditional workers, there are more details and distinctions to dive into if you are considering working with freelancers or becoming a ZZP’er. Try this scan (in Dutch) to see if the project you have in mind qualifies as freelance work, and feel free to check out more info from the KVK and reach out to our team for more details about the important aspects you need to keep in mind for your freelance project.

Why Freelancing is Growing in Popularity

A significant increase in freelance work worldwide has a lot to do with the rise of the gig economy – a labor market characterized by short-term and project-based work. This shift has led to more opportunities for freelancers and those looking for flexibility and variety, as opposed to the previously popular standard of long-term, permanent positions where employees often stayed with the same company for years, or even the majority of their career. More opportunities opening up to work on a temporary or freelance basis have made this way of working very attractive. Increased flexibility, autonomy, and the variety of work available are some of the main reasons many professionals are leaving traditional 9-to-5 jobs in favor of becoming their own boss.

Here are a few reasons why freelancing has become so popular:

1. Flexibility and Work-Life Balance: Freelancers set their own schedules and often work remotely, so they have the option to work from anywhere. This flexibility is ideal for those who want a better work-life balance or do not thrive in a traditional office environment.
2. Diverse Opportunities: Freelancers can work on projects across various industries, allowing them to build a broad portfolio and gain experience in different fields. This variety keeps work interesting and helps freelancers expand their skills. Plus, this is a huge asset for the companies who work with them as they bring a wider range of expertise and knowledge to the table.
3. Potential for Higher Earnings: Freelancers have the opportunity to set their own rates and take on as much work as they can handle. For skilled professionals, this can even lead to higher earnings than a traditional salaried job. It does bring additional costs with it as well though, such as insurance and covering your own benefits, which would otherwise be included in the package of a typical employer.
4. Control Over Career Path: As their own boss, freelancers have full control over the clients and projects they choose to work with, allowing them to shape their career to align with their interests and goals. This means that freelancers also come in all shapes and sizes. Some choose to dive in a very specific niche, while others prefer to become business generalists.

The Challenges of Freelancing

While freelancing offers many benefits, as with any way of working it also comes with its own set of challenges. Here are a few to consider:

1. Income Instability: Freelancers often face unpredictable workloads and fluctuating income, particularly when they are first starting out. There may be periods with fewer projects or delayed payments from clients.
2. Lack of Benefits: Unlike traditional employees, freelancers do not receive benefits such as paid leave, health insurance, or retirement plans. Freelancers need to manage these aspects of their career independently.
3. Self-Management: Freelancers must handle all aspects of their business, from marketing their services and finding clients to managing their finances and meeting deadlines. This can be a challenge, especially if certain parts of being an entrepreneur and running your own administration may not come naturally.
4. Isolation: Freelancing can be a solitary endeavor, especially for those who work remotely. Some freelancers miss the “gezelligheid” of an office environment or the daily interaction with coworkers.

Is Freelancing Right for You?

Freelancing can be a rewarding career choice for those who value flexibility, independence, and variety in their work. However, it’s important to weigh the pros and cons before diving in. Successful freelancers are self-motivated, well-organized, and comfortable managing the business side of their careers.

If you enjoy taking on new challenges, working on diverse projects, and setting your own schedule, freelancing might be the perfect fit for you. On the other hand, if you prefer stability, regular hours, and the security of a full-time job with benefits, freelancing may not be the best option. If stability and working for an employer is your cup of tea then you might want to check out other types of vacancies, where you can work on a temporary contract or find more long-term employment for instance.

But if freelancing sounds like the perfect option for you, then take some time to learn how to be a freelancer in the Netherlands, and discover opportunities on the U-Connect platform.

Is working with freelancers right for your company?

In today’s fast-paced business environment, flexibility and access to specialized expertise are crucial for staying competitive. Working with freelancers can be an excellent solution to help tackle projects, address skill gaps (especially in language fluency or specialized niche knowledge), or scale operations and improve business strategies without committing to long-term contracts. Freelancers bring a wealth of experience and fresh perspectives, which can help your business to innovate and adapt quickly, all without the hassle and extra cost that comes along with training and onboarding a traditional employee.

Do keep in mind that working with freelancers isn’t a one-size-fits-all solution, and may not possible (or desirable) for every project or role. To determine if working with freelancers is a fit for your company, consider whether your company has short-term projects requiring niche skills or if you’re expanding into new markets that might benefit from multilingual or international expertise. Then start by assessing the project needs, budget, and internal capacity to collaborate with freelance talent effectively. If the answer to all of these is yes and you can define a clear freelance project description from this information then working with a freelancer is a great option.

You can then start the search for the best freelancer for your project. Posting your project on U-Connect can simplify and speed up this process by connecting you with a diverse pool of skilled professionals while ensuring compliance with local regulations like the DBA Act in the Netherlands. By understanding your goals and leveraging the right resources, you can determine the best way to work with freelancers to successfully support your business strategy. Want assistance to discover the best way to work with freelancers to reach your company goals? Contact our team for tailored advice and to get your questions answered. 

The Freelance Landscape in the Netherlands

In the Netherlands, freelancing can be particularly appealing to internationals and multilingual professionals. Thanks to special initiatives, such as a special agreement allowing individuals from certain countries to obtain a residence permit based on their freelance work and additional regulations to protect ZZP’ers in the Netherlands, as well as access to a variety of companies and projects makes working in this way a great option for skilled professionals taking their next career step in the Netherlands.

This also provides the perfect opportunity for companies to access the technical and language skills and expertise that they are in need of. With this growing demand for flexible work arrangements and a dynamic job market, figuring out how best to use freelance work to meet your goals is the next step to being future proof.

Conclusion

Freelancing offers a unique path to growth and flexibility. Whether you’re a seasoned professional or just starting out with freelance work, understanding what it means to be a freelancer will help you guide your projects to lead to personal and business success.

Ready to take the plunge? Get connected today and try out our U-Connect platform, where global talent meets Dutch opportunities!