The ultimate dream for many people is not reporting to their boss. And, freelancing fulfills that. However, it takes a different mindset up to attain success in freelancing work.
Freelance work can give you freedom in a tremendous amount. When you spend the day on PlayStation, there’s no one to stop you. Also, there’s no one to pay you, which is a major drawback. Choosing a freelance life comes with sacrifices and certain benefits.
So, employee vs freelancer, which one to choose from? Well, the answer isn’t that simple. Each has its advantages and disadvantages. And, it depends on your personality on how you like to work.
To help you out, here is a comparison between freelancers and company employees. Different areas such as job security, flexibility, control, etc. are considered here.
If you are starting your career and want to know what might suit you best, this article might help you choose the right one.
Job security:
What it means for employees
Salaried employees have job security compared to freelancers. If you are doing great work, a regular paycheck is guaranteed. Even when you are fired, you get a notice period or compensation.
What it means for freelancers
Freelance work is very unstable. You may have tons of work in one month and the next month you may not find a single work assignment. Now, that makes it hard to manage your financial goals.
Even if you have ongoing clients, you may lose them in no time. However, that’s not bad for freelancers. For a salaried employee, losing a job means a lot. A freelancer, on the other hand, have many clients.
And, chances of losing them all at the same time are quite minimal unless there is an economic slowdown. Also, the situation would affect employees, too.
Summary
In general, company employees are more stable. That’s because they can predict their income from one month to another. If you don’t want to stress about your next month's bill payment, a full-time job is good for you. Because freelancing is all about ups and downs, you need to have patience for some time.
Flexibility:
What it means for employees
Although many companies are adopting work-life balance in recent years, still they have a long way to go. Tons of employees tend to work for longer hours.
And, they need to be available online even after completing their work at the office. It is seen that almost every form of salaried employment comprises of fixed commitment to working hours.
Employers make provision for their employees to take time off for important events in their life. But, studies show that people who commit more to their families suffer in their careers.
What it means for freelancers
There is no question that freelancers have more flexibility compared to employees. You have the liberty to choose your work, set your working hours, and have a good family life.
As long as you are good at following deadlines, everything works in your favor. But, you may get carried away and spend your time with your kids or spouse.
As such, work can pile up. You have to make both ends meet to complete the work on the set deadline, which can be tiring.
Summary
If there is no problem in maintaining a daily schedule, a salary job is a good fit. Freelancing can be a good option if you can manage time to complete the work amidst other commitments at home.
Control:
What it means for employees
In a Company, your boss tells you what to do. You have to follow the guidelines set by the organization. So, you have less control over the work.
But, a good boss may help you promote to a higher designation. Then you can have some control over your work. However, you still have to depend on others.
What it means for freelancers
Being a freelancer, you can have full control. If you find zero interest in an assignment, you can reject that. But, the trouble is that you need to pay your bills.
Unless you are in a great position, you have to take some assignments. Also, you have a ‘boss’ for every project you get. It means you have to follow your client’s instructions.
You may have some control over your work. Yet, if you drift too much from the instructions, there might be serious consequences.
Summary
Freelancer vs employee is a hard comparison. Many people believe that self-employment gives you full control over your work compare to working for a company. However, that’s partly true because of some mitigating factors aforementioned.
Benefits:
What it means for employees
One of the greatest advantages of employees is access to certain benefits such as paid leave, medical insurance, parental leave, and retirement scheme.
These things make a huge impact on your health and financial well-being including your family members. Apart from these, companies provide special facilities for their employees such as access to freebies and discounts, gym memberships free of cost, and so on.
Also, companies have a budget for your training. That way, you can nurture your skills with the company’s money.
What it means for freelancers
When you are a freelancer, you are on your own. You need to make arrangements for your medical insurance and you have to sort out your retirement plan.
You won’t earn it if you don’t work. When it is about polishing your skills, you have to do it all by yourself at your expense.
Summary
This is one area where you can have a clear winner. The benefits you get from a good employer are quite valuable. The major drawback of freelancing is that you are responsible to make arrangements for everything.
Motivation:
What it means for employees
Motivation comes in installments when you work for a company. You get reviews for your performance throughout the year.
Those reviews determine certain things like whether you are getting a promotion, or bonus, or earn more money. Sometimes the ‘daily grind’ serves great motivation.
For example, if you are late for work, your boss might get angry. And, if that continues, you may have to face serious consequences. More badly, you may lose your job. Hence, you get the motivation to get off the bed as early as you can.
What it means for freelancers
You need to motivate yourself when you undertake freelance work. Right from marketing to finding clients, and having the best deal depends on you.
You have to put yourself out, and there won’t be anyone to motivate you. And, when you get massive work assignments, you have to manage them alone. You may watch TV, wake up late, and do whatever you like because there isn’t anyone to stop you.
No one will get angry and fire you. However, clients will lose their trust in you if you fail to meet the deadline. And, they won’t seek assistance from you further.
Summary
If you feel like you need motivation a lot, a full-time salary job is perfect for you. But, if you are a freelancer, you have to take the lead and motivate yourself. However, an empty bank account can be a great source of motivation for a freelancer.
Employee vs Freelancer: Conclusion
By now, you might have a clear understanding of freelancer vs employee as career choices. However, it is not possible to measure which one should be the better choice.
It depends on your personality and how you manage your work life. Therefore, make a thorough self-analysis and try to find out what you want. Make every possible research to see how freelancing or salaried job might work for you.
In this guide, I have tried to show you some of the advantages and disadvantages of both careers. Next, you need to decide what’s best for you.