Which is the Most Stable: Freelancer or Employee?

Freelancing is a relatively new concept used for people who can have the freedom of choosing the companies they work for, their own schedule, and the amount of work they want to complete. Compared to being a traditional employee, we discover both have advantages to consider, and the choice is challenging. In this article, we will discuss the benefits of freelancing and those offered by traditional work, and then you can decide which fits your needs better.

       Table of Contents

1. Being an Employee
• Stable Income
• Safety of Your Job
• Professional Growth
2. How Stable is Freelancing?
• Independence and Flexibility
• Multiple Income Sources
• Development of Skills and Marketability
3. Conclusion

Being an Employee

1. Stable Income:

Employees have a set salary, which is usually received at the beginning of each month, and this guarantees them some level of financial security that they otherwise would not have. This is one of the main advantages employees have. Even with a low salary, it's still more than a month without payment if you work alone. Of course, there are exceptions when the employer has financial problems and can delay the workers' salaries for months. But in the general case, such fluctuations are rare, and employees get their paychecks on time.

In the chart above, the employee would take $18 000 for the first half of the year, while the freelancer will manage to earn $24 500 for the same period. Money is not distributed evenly to the freelancer, reflecting the variety and flexibility of his work life. Even though there are months when the freelancer is not making enough money, his overall income is still much higher than that of the traditional employee.

2. Safety of Your Job:

When working on a labor contract, individuals are protected by Labor law that applies to the specific country, ensuring a lot of security. Some examples of this are:

            ✅ Protection against working too many hours in a row - you can't do 24 hours in a row for a single shift, you can't work 7 days in a row, you can't work without having your annual leaves, etc.

            ✅ Protection against losing your job due to personal reasons - in case of unemployment, you might be eligible for financial support and/or support in finding a new job.

            ✅ Protection against bankruptcy of the company - in case you lose your job due to the company being shut down, you are eligible for a compensation

            ✅ Protection against being mistreated at the workplace - if any issues arise due to being insulted or any form of discrimination happens, you can pursue your rights in court.

            ✅ Protection in maternity cases - you get to keep your spot even if you take more extended leave due to pregnancy and maternity.

3. Professional Growth:

Many companies nowadays offer positions in a level-structured environment that allows employees to grow in their careers. It is not uncommon for companies to have their available positions listed for public view, and interested individuals can apply. However, if someone within the company wants to level up, that application is reviewed with priority. This way, employers motivate their workers to remain loyal and upgrade their position in their workplace.

Another common practice is conducting courses or training about particular work areas that can lead to better qualifications and a consequent higher promotion in the hierarchy. This allows the employees to feel appreciated and satisfied with their chosen job.

How Stable is Freelancing?

1. Independence and Flexibility:

Since freelancing is not tied to a specific company, you can choose among various clients, tasks, and projects. The work is dynamic, and you get to learn a lot of new information quickly. This improves overall work experience, professional value, and confidence and leads to your capability of quickly becoming valuable to many customers.

Opportunities don’t happen, you create them.

~ Chris Grosser

This is a unique kind of stability - you are not protected against losing your jobs, but your safety lies in the fact that you can easily switch to another work once this happens. You are not counting on an employer to provide stability to you - it's just the opposite - your skills and talents ensure you will always be offered new projects. Freelancers who reach the phase when their offers are much more than they can accept are considered successful."

2. Multiple Income Sources:

Working for different clients improves communication skills and provides many income streams for freelancers. Even if one project is taken down, this will be compensated by other clients offering you different opportunities. Juggling with many options is part of a freelancer's lifestyle. This gives them the stability to adapt to the constantly changing work environment. Such an advantage surpasses employees' skills as labor contract workers focus on a particular job and skill set.

3. Development of Skills and Marketability:

Having a variety of projects and clients to work with inevitably leads to the development of various skills, such as:

                ☑ Learning to grasp things quickly

                ☑ Improving the speed of reading and understanding

                ☑ Improved writing skills

                ☑ Better writing speed

                ☑ Skills in different work fields

Self-reported individuals with better skills can find and be approved for new projects more efficiently, increasing their overall marketability. Professionals prefer to work with the most skilled workers, as this would provide them with the highest possible quality of work fulfilled.

Conclusion

Both working as an employee and for yourself have their leverages and downsides. Working for a company can provide financial stability on a month-to-month basis, a fixed work environment that contributes to creating safety habit routines, and growth in the hierarchy. On the other side, freelancing offers flexibility and the constant change of workplaces and customers, resulting in better adaptability. It's up to the individual to decide which one their character fits.

Freelancing is better for people who dislike working with a well-structured organization and have the spirit of entrepreneurs. Employee jobs would better suit people who like already set environments with particular rules and time shifts. It doesn't mean that you will not grow your skills as an employee, but the pace will be much slower.

Stability is a subjective term - it depends on how people view it. For some people, freelancing is more secure as it allows you to count entirely on yourself without any external influence. For others, depending on an established organization feels safer. We are all different in our views about circumstances and stability.

Which one do you think is more stable - freelancer or employee?