Why In-House and Freelance Web Developers Are Both Ideal for Small Businesses

Pros and cons of hiring freelance web developers

Hiring a freelance web developer is one way to build a website for your business, but because freelancers work on a project-to-project basis, they may be ideal for specific situations. Here’s a closer look at the benefits and drawbacks of outsourcing your web design.

Pros of hiring freelancers

Consider the following benefits of hiring freelancers for website development.

They’re motivated.

Every job completed well by a freelancer can lead to a referral or testimonial. They’ll be committed to doing a good job on your website because they’re looking to build a reputation to land future contracts, and they need a portfolio to showcase the work they’ve completed successfully. Also, the better the job they do for you, the more likely you are to rehire them. Therefore, it’s in their best interest to perform well for you.

They often go above and beyond.

Thomas Jost, a former freelance developer and engineer who now works for Built Technologies, said freelancers might do a better job than in-house employees on certain areas of a project.

“Oftentimes, because they are sole proprietors, they’re willing to go above and beyond what a salaried employee would be willing to do,” he said. “The predominant driving force here is word of mouth — freelancers are relying on your referrals to keep their lights on. Salaried employees are only worried about being productive enough to not get fired most of the time.”

They’re cost-effective.

Freelancers can also be more cost-effective for smaller projects, like updating or adding new components to a website, changing different design elements or building new pages. There is little need to bring on a full-time team member to handle small tasks and bear the associated costs.

In addition, freelancers are there when you need them and won’t cost you money when you don’t. While you might pay more per hour for a freelancer, they bring their web development expertise only when you need them. For business owners who are trying to keep their fixed costs down and their access to skills up, it’s a solution that works for you and your freelance partners.

They bring fresh perspectives.

Although some freelancers specialize, many work for a variety of clients in different sectors. They may bring ideas that an in-house designer or developer would not consider. For example, they might recommend implementing a chatbot and linking it to your customer relationship management (CRM) system to provide online customer support, or implementing a local SEO strategy to boost visibility in Google Maps and local search results.

Cons of hiring freelancers

Before you hire freelancers, consider these potential drawbacks. 

They have more independence.

Freelancers are sometimes less committed to a project and have lower accountability, leading to a greater chance that they might disappear from a project. Conduct thorough research, and read reviews about the freelance web developer you’re interested in working with before you hire them for a project.

Freelance web developers are also more difficult to manage because they aren’t full-time employees. They work under their own hours, which might make it more challenging to oversee your website’s progress during normal business hours. Additionally, if freelancers have nontraditional office hours or live in different time zones, it can present communication challenges and unpredictable availability. 

They have niche skill sets.

Freelance web developers are typically hired for their expertise in certain areas, as opposed to their broad range of skills. You may find that one freelancer is not adequate for your entire project. Consequently, you may have to contract with multiple people just to build one website, pushing up the cost and the time you spend managing the project.

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You get limited post-project support.

Freelancers have no obligations to your company once the project is complete and their contract is over. If any issues surface following the completion of the website, you may have to resolve the problem on your own or look for a new web developer. While saving money is a prime motivating factor for hiring freelancers, using them for your web project could actually end up costing more.

They may pose a security risk.

Hiring freelancers presents a security risk because they often have access to sensitive information, like your customer data, business processes, system logins and intellectual property. [Learn more about intellectual property insurance.]

Whereas your employees work solely for your business, freelancers work on multiple projects for many clients simultaneously. This increases the risk of data breaches because your freelancer may inadvertently mix up information between their clients or store sensitive data on personal devices that aren’t as secure as your company’s systems. Be certain to limit your freelancer to the parts of your network they need to do their job, and make sure they sign a nondisclosure agreement.

It may not be clear who owns what.

Your contract with the freelancer must clearly state who owns what. If your web developer creates, for example, a custom algorithm for product recommendations based on your unique customer data, you need to protect your investment. Otherwise, there’s nothing to stop that freelancer from using their experience with you as a case study and pitching it to competitors.

Consult a lawyer about this, and ask them to consider adding a noncompete clause to your freelancer agreement.

Pros and cons of hiring in-house web developers

Hiring web developers to work for your company full time can eliminate the cons of dealing with freelancers, among other advantages. However, using in-house staffers to build your website can present its own set of issues.

Pros of hiring in-house developers

Consider these benefits of hiring in-house developers.

They are there for the long term.

In-house web developers provide high-quality support to your business for the long term. You’ll have a consistent team working together toward a common goal. These employees will be an integral part of your company, and their permanent presence aids collaboration.

They are familiar with your company.

A seasoned developer who knows your company and is always there can guide the project from the initial preproduction sketches to postlaunch maintenance.

Ed Parsons, founder of technology company Acutulus Enterprises, said design advice is a vital service that in-house developers can provide. “If you need assistance in developing the idea around the site, having a developer in-house can offer consistent and constructive insight, as well as advice on design,” he said. 

They are available for ongoing maintenance.

Websites are dynamic entities that require your constant attention, and they can crash for a variety of reasons. Having an in-house developer means you have someone who can handle any necessary maintenance issues or updates right away rather than waiting for a freelancer to become available.

“It all depends on the complexity of your project and frequency of updates,” said Donnie Strompf, founder of digital marketing company Good At Marketing. “If you need the website to be updated daily with new content or complex programming, an in-house developer is the best way to go.”

They save time and build up in-house skill sets.

Hiring permanent web developers can also save time because it means you don’t have to create freelance job postings, schedule and conduct interviews with candidates, and handle future issues by yourself. That way, you can focus on other aspects of your business without worrying if a freelancer might disappear in the middle of a project.

Having an in-house developer gives your company access to consistent expertise and skills throughout the website’s life cycle. You can encourage them to add to their skill sets as the demands of the project change. By investing in their professional growth and career development, you increase their loyalty to the company.

Cons of hiring in-house developers

Note these potential downsides of hiring in-house developers.

They may be expensive.

The cost of hiring a web developer depends on the candidate’s job history, position and overall experience. 

They’re cheaper per hour than a freelancer, but because you employ them full time, the cost will be higher. You will be paying for not only their work but also benefits packages, 401(k) matching and other perks. [See our picks for the best employee retirement plans.]

Plus, most businesses need more than one developer, and multiple annual salaries, office space, training, health insurance, licensure, paid time off and other overhead costs can add up quickly.

It takes time to build a team.

Even if you can afford it, creating a team of in-house web developers can be a slow and expensive process. You have to take valuable time to recruit for positions, hire talent and train new employees. And sometimes, someone who isn’t right for the role will slip through the net, but it often will take months to spot that.

In the time it takes to create and onboard a team of in-house web developers, a freelance developer could probably complete a smaller project.

They may have some downtime. 

There will be days you’re paying your web developers for not completing tasks. Having a salaried employee means you pay for them to be at work even if there is no current project for them to tackle. That means you run the risk of not only wasting money but also driving the team member away from your company for a more fulfilling opportunity elsewhere.

You must invest in professional development.

Keeping full-time staff engaged is a challenge for all employers. An employee looks to you for ongoing training, skill development and job advancement opportunities. In other words, when they’re with you, they expect you to work toward developing their careers while paying them a competitive rate.

This is even harder for small businesses, where there are fewer opportunities for professional development and promotions. [Read related article: Prevent Quiet Quitting With These 5 Steps]

How to decide whether to use a freelance or in-house web developer

Deciding whether to use a freelance or in-house web developer is tricky because both types of workers can serve small businesses well. The answer is often complicated because, like any business decision, it depends on your company’s specific needs.

Consider these important factors when you’re deciding between freelance and in-house web developers:

• The project timeline
• The level of support you need
• Your financial resources
• The complexity of the project
• Your long-term web development needs

If you’re leaning toward using a freelancer, it’s critical to vet each candidate and understand how the developer or team will fit into your workflow. In addition to asking potential web developers pertinent questions, business owners should find someone who is reliable and recommended, said Ben Lord, founder of web design company Softlimit.

“Finding developers that will be there when you need them most is key,” he said. “They need history that you can verify and need to be able to offer the support you’ll need on a long-term, ongoing basis.”

Freelancers generally charge per hour or per project. According to Upwork, the average web developer on that platform costs between $15 and $30 per hour, which may feel more palatable than shelling out thousands of dollars for an in-house developer. Of course, spending less money can help you, but it can also come with trade-offs.

In contrast, in-house web developers are great for businesses that are looking to execute large web projects that require constant maintenance. Hiring a full-time employee is also a good option for business owners who aren’t sure what kind of website or platform they need.

“If you are seeking to have a robust web application built that will require significant technological understanding and know-how to maintain, then you should hire in-house,” Jost said. “This includes if you anticipate large periods of scaling or introducing complex functionality beyond that of a simple content management system or CRM.”

Ultimately, remember this: In-house developers are best for big, complicated website projects that will require ongoing work, while freelance developers are better for smaller projects that don’t need constant maintenance. 

With that in mind, the decision comes down to the type and size of your project. Ask yourself these basic questions: 

• What am I looking for? 
• How much time is needed? 
• What is the cost?
• What are the technical requirements? 

Your answers will lead you to the best fit for your business’s unique situation.

The bottom line of in-house and freelance web developers

Use a freelance web developer if …

• You have a small-scale or short-term project.
• You have a limited budget.
• You need specialized skills (like a custom user interface designer or someone who can code in a particular language) for a specific task.
• Your website won’t require constant updates or maintenance.

Use an in-house web developer if …

• You’re planning a large and complex web project, like an e-commerce platform or a web app.
• Your website will need frequent updates and maintenance.
• You want the stability of working with someone who’s familiar with your business.
• The website will need more complex functionality in addition to basic content management.

Sean Peek and Matt D’Angelo contributed to this article. Source interviews were conducted for a previous version of this article.