In game development, is it better to work with employees or freelancers?

Disclaimer: This DevLog is intended to help anyone, who is in a similar situation we are in at the moment. Everyone has to make their own decisions. This merely is our own honest view and opinion, based on our experience. We would love to hear from you, what you think about it all. We wish you all the success and fun you deserve with the development and release of your game! eXplore Studio

Deciding whether to employ people or work with freelancers in game development depends on various factors, including your project’s needs, the location and country of residence of the people who work with you, your available budget, and the long-term goals of your studio.

Employing full-time staff has got certain advantages but also drawbacks. On the positive side, it tends to bring consistency, stability, and longer-term commitment. Team cohesion is likely to be higher having a dedicated team, which can foster better collaboration and a stronger company culture. Regular team members can build stronger relationships and may work more cohesively over time. Also, it may be easier to align team members with the company’s vision and processes. Finally, employees can grow and develop their skills within the company, leading to higher quality work over time.

On the negative side, full-time employees may come with additional costs such as benefits, potentially higher salaries, taxes, and overhead costs such as for office space. Also, your studio needs to have a steady flow of projects in the pipeline to keep everyone engaged and productive. However, this is something helpful anyway to ensure revenues are more distributed over time. If employees are geographically dispersed, coordination across different time zones can be difficult and may require flexible working hours. Again, this might be just as well the case for freelancers. There is, however, an undeniable administrative burden to employ people in different countries due to different national employment legislation.

Similarly, hiring freelancers has got pros and cons. On the positive side, freelancers can be hired on a project-by-project basis, allowing you to flexibly scale your team up or down as needed. Freelance contracts also tend to be cost-effective, since you only pay for the work done, without the additional costs associated with full-time employment. Moreover, freelancers often bring specialised skills and can be hired for specific tasks or projects only, and working with freelancers allows for access to global talent with diverse skills and perspectives. In other words, you can work with people that you could perhaps not employ because of the country they reside in.  

On the negative side, you may have less control when managing freelancers, especially if they are working remotely. Of course, the same would apply for remote employees. Often, freelancers may have other commitments in parallel, which may affect their availability and reliability. In addition to that, it may be harder to integrate freelancers into your existing team and processes.

In conclusion, for a global team, hiring freelancers might offer more flexibility and cost savings, especially for short-term or specialized tasks. However, if you need longer-term commitment and consistency and you have the budget, employing full-time staff could be more beneficial. If you need flexibility and have specific short-term needs, hiring freelancers could be better for you.

What is your situation? Which specific aspects of your project are you most concerned about? Thinking about this might help you in deciding the best approach for your studio.