Freelancer vs. Employee

There are two different ways to work at home. Telecommuting refers to workers who are hired as employees by a company, but do their work remotely. Telecommuting employees do the work specified by their employer and usually, they are not free to choose when and how to do it. On the other hand, independent contractors, also known as freelancers, are self-employed. They may work for several companies or clients at any given time. They are usually paid per project completed at terms specified or negotiated with the client. Taxes are also different for self-employed persons.

Freelancers: Pros and Cons

The biggest advantage of working as a freelancer is the flexibility. When your work is entirely your own, no one sets your hours. In addition, you get to choose the clients and projects that appeal to you, as opposed to having your employer choose them for you. As the boss, you have no one to answer to except your own clients. You also keep all the profits from your work. Unfortunately, there are downsides to working as an independent contractor. Firstly, work is not guaranteed. As a contractor, you can be fired without repercussion to the company. Especially when you’re just starting out, you may find that there are times when you don’t have as much work as you’d like. Finding clients can be a lot of work, some of which might be unpaid until you secure the job. Freelancing also comes with risks, such as working for clients who don’t pay up. Last but not least, without a steady employer, you’ll be hard-pressed to get health and dental benefits.

Remote Employees: Pros and Cons

As an employee, you have more job security than a contractor. Your employee may not fire you without due cause and even in the case of layoffs, you may be compensated if you lose your job. Moreover, employers usually offer the possibility of benefits, including health and life insurance, and a pension plan. Most employees are guaranteed pay in the form of an annual salary, which sometimes comes with the possibility of a bonus. A salary is a sure thing; however, it is also an upper limit compared to a contractor whose pay is never set. In some cases, employees may find they have little or no room to grow and no control of the opportunities available. As an employee who works from home full- or part-time, you also don’t have the flexibility of a contractor. Your employer chooses the work you do and where and when you do it. But if you’re motivated by others who expect results, such as your boss and your co-workers, you might find yourself more suited to being an employee.

Choosing the Best Fit

What you choose will depend on your individual goals, skillset, and personality traits. If you think of yourself as highly motivated and independent, being a contractor is probably the better option.

If instead you find yourself drawn to routine, predictability, and security, you might be more likely to thrive as an employee.