Freelancer or Employee – Analyzing the Options
Advantages and disadvantages of freelance workers and employees
In the last decade, there has been seen an immense change in the way businesses are working. Accessing remote workers is an increasing trend these days and has dramatically changed the meaning of work and workplace.
There are many people who are working off-site or from home. According to a survey conducted in America, 53 million people in America which comprises of 34% of the total workforce are working as freelancers whether it is their main source of income or a supplemental source. This population percentage contributes $715 billion to the economy via freelancing work. Moreover, it is also expected that this percentage will increase to 40% by 2020.
Pros and Cons of Full-Time or Freelance Workers
- Cost: Full-time workers tend to incur more costs than freelancers.
- Risk reduction: This factor is reduced for freelance workers since they are not the employees and do not have right to benefits offered to full-time workers. They are easy to replace which is not true for full0time workers.
- Quality: Freelancers thrive to work at their best so as to keep the relationship going. Staff members vary in their performance.
- Global reach: Companies can seek freelancers from across the world and capitalize the opportunity to hire the best services available in the world. Full-time workers are geographically limited.
Most Demanded Freelance Jobs
- Writers: This is the most demanded freelancing job as writers use their distinct creativity and instinct to perform their work. The increasing demand of digital marketing has led to a soar in the demand of freelance writers.
- Graphic designers: Digital agencies, media houses and production houses demand graphic designers and are the most demanded freelance job.
- Web developers: The increasing trend of e-commerce have increased the demand of freelance web developers.
- Online marketers: Online strategist is most demanded because of the digital age. Big and small, all brands are hiring freelancers to market their product globally.
How Much Can A Freelancer Earn?
According to a survey, freelancers tend to own more as compared to traditional workers. The reason behind this is that if you lose one client you will not be losing your entire income stream. A recent survey conducted by Payoneer indicates that an average freelancer works for 36 hours per week with an hourly rate of $21 making their annual pretax salary to be $39,000.
Benefits and Drawbacks of Hiring Full-Time Workers or Freelancers
Both the options have their pros and cons. Many businesses want to avoid their overhead costs by having a slew of employees however; there are others who do not have any choice. The best thing here to do is to analyze your situation and then decide what is best for you.
Advantages of Full-Time Workers
- Employees require job security if they reach the satisfaction level in their job. If they are provided with security, they will surely go one mile ahead for the company.
- Since these employees have job security, their hourly wage is much less.
- Tasks can be easily delegated to others. This not only frees your time but, also offers more time to do tasks that are most suitable for you.
- Continuous staff training is not required because the employees know their employer well and do not need continual directions.
- In case, an employee wants a vacation from his work, they know someone is holding their fort in your absence.
Disadvantages of Full-Time Workers
- Although, not mandatory, many full-time employees are provided with other benefits like Medicare, Social security, health as well as retirement benefits.
- Salaries need to be paid on time no matter what is your business condition.
- Entrepreneurs are required for the licensing and training of their employees.
Advantages of Freelancer Workers
- Although, their hourly wage may be higher but, you do not have to provide them any other benefits.
- They offer greater flexibility. If working conditions are adjustable for both parties, you can work out or vice-versa.
- You can hire people having specialized services.
- Entrepreneurs are not responsible for the professional licenses and permits of the freelance workers.
Disadvantages of Freelance Workers
- Lose control over performing certain tasks.
- They are hired for a shorter time period which means you might not get them in another project.
- Company loyalty factor is missing.
- Copyrights are owned by the freelancer unless otherwise mentioned.
Best Freelance Websites
There are many freelancer websites through which many freelance workers are operating. These websites include