If you’re thinking about becoming a freelancer and an employee in the future, now is a great time to know the pros and cons of each career.
In this article, we’ll take a closer look at the 20 most significant pros and cons of becoming a freelancer and an employee.
So that you can make an informed decision about which path is right for you.
But before that, let first understand what is freelancing and employee careers in case you are just starting out or a beginner.
What Is Freelancing?
Freelancing also referred to as self-employed or independent contracting, is a way of working when an individual offers their services to different clients on a project-by-project basis, rather than working as a usual employee for one company.
Freelancers can work in a variety of various careers, including writing, graphic design, programming, consulting, and more.
While freelancing also has many advantages, like flexibility, autonomy, and the opportunity for better income, it also has its own set of disadvantages, including the need to source one’s own clients and a lack of job security.
Also Read: 10 Best Freelancing Job For Beginners
What Is An Employee?
An employee is a person who works for an organization in return for a salary, wages, or other compensation. They are recognized as employees of the organization and regularly work either full- or part-time schedules.
As an employee, an individual is usually obligated by the organization or employer’s policies, practices, and management. Most companies make their employees eligible for advantages like health insurance, paid time off, and retirement programs.
Compared to freelancers, they are less independent and self-sufficient because they have less choice over the tasks they take on and the direction of their careers. Additionally, they are more likely to have stable employment and a reliable income.
20 Pros And Cons Of Becoming A Freelancer and An Employee
Both freelancing and employee have their own set of pros and cons, so it’s important to carefully consider each of them before making a choice.
Here are the 20 significant pros and cons of becoming a freelancer and an employee:
10 Pros Of A Freelancer:
- Flexibility In Working Hours And Location: As a freelancer, you are free to set your own hours and conduct business from any location. This enables you to establish a work-life balance that is most effective for you.
- Flexibility To Choose Projects And Clients: As a freelancer, you have the flexibility to choose the clients you wish to work with and the projects that best suit your interests and skills.
- Possibility Of Higher Pay: As a freelancer, you usually have the option and opportunity to charge higher rates than employees, which can also result in higher pay.
- Expenses Advantages: Unlike employees, freelancers sometimes qualify for deductions for business-related expenses.
- Opportunity To Acquire New Skills: As a freelancer, you are allowed to work on a wide range of projects, which can help you in acquiring new skills and expand your knowledge and experience.
- Ability To Build A Vastly Different Portfolio: As a freelancer, working on different projects for different individuals will help you build a vastly different portfolio that highlights your skills and experience.
- Freedom And Achievement: As a freelancer, you have the right to be your own boss and the freedom to make decisions about your job.
- Possibility Of Long-term Agreements: As a freelancer, you can sometimes be able to reach long-term agreements with clients, which can provide them with a feeling of security.
- Ability To Work With Multiple Clients At Once: As a freelancer, you have this ability, which can provide you with a feeling of security and help you expand your income.
- Ability To Work On Different Types Of Projects: As a freelancer, you are allowed to work on different types of projects and experience new things, which can keep your work interesting and engaging.
10 Cons Of A Freelancer:
- Lack Of Work Security: As a freelancer, there is no job security or guaranteed income.
- There Are None: As a freelancer, you are responsible for paying for your own benefits, which can be expensive.
- The Need To Find Your Own Clients: As a freelancer, you are responsible for finding your own clients, which can be a challenging task and time-consuming.
- The Need To Manage Your Own Fees And Expenses: As a freelancer, you are responsible for managing your fees and expenses. Which can be difficult and intimidating.
- The Need To Manage Your Own Marketing And Promotion: As a freelancer, you are responsible for marketing and promoting your brand and finding new clients which can be sometimes difficult.
- The Need To Invest In Software And Equipment: As a freelancer, you are responsible for making expensive purchases for your own software and equipment.
- The Need To Put In Extra Hours To Reach Deadlines: As a freelancer, you are responsible for putting in extra hours to finish your projects on time and satisfy clients, but this could also stress them out.
- The Need To Manage Client Issues: As a freelancer, you are responsible for managing client issues, which can be time-consuming and frustrating.
- Lack Of A Stable Source Of Income: As a freelancer, you can have revenue variations, which can make budgeting and financial planning challenging.
- The Lack Of A Support Network Or Collaboration Team: Since freelancers usually work alone, it can be difficult to find a team to collaborate with.
10 Pros Of Being An Employee:
- Job Stability: As an employee, you usually have a steady income and job stability.
- Bonuses: As an employee, you usually have access to bonuses, like healthcare insurance and paid time off, which can be a big advantage.
- A Stable Income: As an employee, you have a stable income, which can make budgeting and financial planning simple and easy.
- The Possibility Of Job Promotion: As an employee, you can have opportunities for job promotion and growth.
- The Possibility Of Retirement Funds: As an employee, you have access to retirement funds, including pensions, which can offer long-term financial security.
- The Possibility Of Receiving Bonuses: As an employee, you have the opportunity to receive bonuses and other rewards, which can pay as rewards for a job well done.
- The Possibility Of Receiving Training And Growth Opportunities: As an employee, businesses give you the opportunity to grow and improve in their jobs by offering training and growth opportunities.
- The Ability To Learn From Co-workers: As an employee, you have the opportunity to learn valuable skills and knowledge from your more experienced co-workers.
- The Ability To Work As A Team: As an employee, you have the opportunity to collaborate with a group of team, which can create a supportive environment and a sense of belonging.
- The Ability To Concentrate On One Job At A Time: As an employee, you are allowed to concentrate on one job at a time, which can be less stressful than managing several jobs as a freelancer.
10 Cons Of Being An Employee:
- Limited Freedom And Independence: As an employee, you are required to abide by the business laws and procedures and that can lead to having limited freedom and independence.
- Limited On Choosing The Projects You Work On: As an employee, you are not given the freedom to choose the projects you work on.
- Limited Control Over Your Workflow: As an employee, you usually follow a fixed workflow, which can make it challenging to manage work and personal responsibilities.
- Limited Control Over Your Income: As an employee, you have limited control over your income, which can be frustrating.
- Limited Control Over Your Occupation: As an employee, you have limited control over your occupation opportunities for promotion.
- Limited Control Over Your Work-life Balance: As an employee, you have to sacrifice part of your personal time for work which can be challenging.
- Limited Control Over Your Workplace: As an employee, you don’t have the freedom to choose your workplace, which can be frustrating.
- Limited Control Over Your Rewards: As an employee, you have limited control over your reward because it’s being decided by the corporation or company.
- Limited Control Over Your Retirement Funds: As an employee, the company’s retirement funds could not be in line with your financial targets.
- Limited Control Over Your Career Growth Opportunities: As an employee, the company’s training and growth opportunities might not match your career goals.
Whether you choose to be a freelancer or an employee, they both have their own set of pros and cons. Which we have listed in this article.
Before choosing a choice, it’s important to carefully consider these as well as your own goals and interests. Overall, the key is to find a path that best fits your interests, abilities, and values.
When you have decided to start a freelancing career, read our guide on how to start even if you don’t have freelancing experience.
Frequently Asked Questions (FAQs)
What is the difference between a freelancer and an employee?
A freelancer is an independent contractor who works on a task or project for a client, usually in exchange for payment. On the other hand, employees are people who are employed or constantly hired by a company.
What are the advantages of freelancing?
Flexibility is one of the advantages of freelancing, allowing freelancers to set their own work hours and avoid costs associated with regular employment.
In addition to having the opportunity to make more money than employees, freelancers can also pursue individualized career paths.
How do I find freelancers to work with?
What are the benefits of hiring an employee?
Hiring an employee can offer several benefits, including a more steady workload, access to a larger range of skills, and the ability to build a team of long-term relationships.