Key Takeaways
- Offering comprehensive benefits helps reduce presenteeism, which is five times more likely to occur than absenteeism and is up 8% in recent studies.
- Benefits such as paid sick leave and mental health resources support productivity and engagement in freelancers.
- Eighty-eight percent of people trust recommendations from individuals they know, meaning freelancers who feel supported can improve your brand's reputation.
Many companies rely on freelance talent for flexibility, speed, and specialized expertise. Freelancers allow teams to scale quickly without having to make the long-term commitment to a full-time hire, providing an advantage during busy periods or when internal resources are stretched too thin. That flexibility is likely fueling the recent 260% increase in freelance hiring from 2022 to 2024.
One element that’s often overlooked when hiring freelancers is benefits. Freelancers don’t typically receive them, unless they work as W-2 employees through a staffing agency. But access to benefits doesn’t just improve the opportunity for the freelancer; it also impacts your ROI. Understanding the connection between benefits and ROI helps ensure that when you partner with a staffing agency, their offerings fully support both your investment and the freelancers you rely on.
The cost of “pushing through” during illness
One of the largest ways a lack of benefits affects an organization’s ROI is when freelancers work when they probably shouldn’t. It’s easy to see how absenteeism impacts the bottom line. If people aren’t working, productivity and revenue take a hit. But what’s less obvious is that presenteeism, which is what it’s often referred to when someone works while they’re unwell, is actually more costly than absenteeism.
A recent study found that while absenteeism has dropped by 22%, presenteeism has risen by 8% and is five times more likely to occur. Even more striking, the cost of presenteeism is estimated to be about three times higher than absenteeism. For freelancers, the risk is even greater. Without access to benefits like paid sick time, they’re often incentivized to work while sick because if they don’t show up, they don’t get paid.
When freelancers have access to benefits such as sick leave, they feel supported and can take time off when they need it. That’s where benefits deliver direct ROI, protecting project momentum and preventing productivity dips that can derail timelines, increase budgets, and reduce quality.
The ripple effect of freelance challenges
If you’ve hired freelancers before, you know they can play an important role in your workflows. However, if a freelancer isn’t fully present due to feeling unwell or not being able to take time off when needed, it can ripple through your organization, impacting team performance, engagement, and morale.
In fact, employees who are “not engaged” or “actively disengaged” cost organizations an estimated $1.9 trillion in lost productivity. If you have an entire team that isn’t engaged, that cost multiplies.
Providing freelancers with comprehensive benefits helps reduce these risks by supporting their basic needs. Health benefits allow them to get care when needed. Paid sick time gives them the ability to take time away and recover. Support like dependent care accounts helps cover everyday needs like child care. As you evaluate the benefits your staffing partner offers, consider the following:
Major medical insurance: Protects against gaps in care and helps freelancers manage their health proactively.
Mental health support: Keeps talent focused and present, especially in high-pressure environments.
Paid sick leave: Helps freelancers manage personal responsibilities without added financial stress.
Flexible Spending Accounts (FSAs): Covers expenses like dependent care, helping freelancers stay supported and engaged.
These types of benefits help freelancers stay well and fully engaged in their work. They also help protect your investment by giving your team the support they need to show up as their best selves.
Brand impacts and ROI
It’s easy to separate freelancers from traditional workers and their impact on company identity, but in reality, contractors have a wider impact than you might think. They might be building your products or representing your brand, tone, and values in some other way. And if freelancers feel unsupported or overwhelmed, those experiences can spiral outward.
For example, it can impact how they talk about your brand within their networks and how likely they are to recommend you to their peers. This point is particularly significant, as research shows that 88% of people trust recommendations from individuals they know more than any other channel.
Freelancers also tend to have wide-reaching networks, and a negative experience can travel fast. When companies show their commitment to freelancer well-being by ensuring they have access to high-quality benefits through a staffing agency, freelancers are more likely to share positive experiences, which can indirectly impact your brand and ROI.
Moving forward with positive ROI
As you move forward with plans to onboard freelancers, a great first step is to talk with your staffing partner about the benefits they offer talent. This helps ensure the benefits are high quality and designed to support freelancers in a way that also supports your ROI. A few questions to consider include:
- How soon do freelancers become eligible for benefits? Aquent, for example, offers eligibility at just 20 hours per week—well below the standard 30- or 40-hour threshold many other staffing agencies require. This helps ensure coverage starts before life disruptions derail productivity.
- What level of coverage is actually offered? Ask about the types of plans available, whether deductibles are low enough to be manageable for talent, and if mental health resources are included.
- Do freelancers have access to long-term financial tools? Retirement planning is often an overlooked resource for freelancers. But when they have access to a 401(k) with matching and immediate vesting, as Aquent provides, they're more likely to stay engaged over the long term.
Considering benefits and what they provide to both talent and your company can lead to higher productivity, fewer project delays, and stronger brand reputation. When freelancers feel supported, they’re more likely to share positive experiences about working with your brand, which can further strengthen your ROI.
Want to dig deeper into how benefits can support your freelance talent? Check out these 7 questions to ask a staffing agency about their benefits offerings.
About the author
Nicki Howell is a freelance writer and content strategist with deep expertise in benefits, insurance, and technology trends. As a contributor to industry publications like BenefitsPRO and PC360, she covers topics ranging from pet insurance and workplace presenteeism to employee assistance programs and mental health. With over a decade of experience, Nicki specializes in translating complex industry concepts into engaging, accessible content for professionals.
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