Today, both employers and employees have various options when it comes to how the employment relationship is structured. From part-time work and freelancing to full-time employment and contract work, the choices are vast. Depending on your needs and unique situation, you can structure the relationship any way you want, as long as the basic employment guidelines are followed and both parties agree.
The way modern businesses evolve, as well as outside factors, also continuously changes the type of employment models businesses choose. For example, the worldwide pandemic has forced many companies to let their workforce work from home, remotely. Full-time job losses have also been significant and increasingly more people have started tapping into the world of freelancing where they realised that there was great potential to earn a good income.
But what exactly are the differences between these two major forms of employment: full-time employment and freelancing? Let’s explore:
The benefits and pitfalls of full-time employment
Full-time employment usually involves signing an employment contract with an employer that includes various company policies and rules. The document contains a set working schedule and agreed-upon remuneration per month, week, or fortnight. In a full-time employment situation, you typically report to a senior and have certain set tasks, responsibilities, or key performance indicators (KPIs).
Let’s now look at the pros and cons involved in taking up full-time employment:
- Provides job security through a signed contract. In most cases, the contract cannot be terminated without good cause, and labour laws followed.
- Offers a stable income.
- Involves a predictable work schedule.
- May include benefits such as paid vacation and sick leave.
- Has to report back to a senior or boss.
- Set working schedules mean less freedom.
- Has to perform set tasks and reach certain KPIs.
- Lack of motivation when income stays the same month after month.
The benefits and pitfalls of freelancing
Freelancing is a form of self-employment. Freelancers are usually compensated per completed task or project. Although each client offers instructions and sets deadlines, freelancers don’t have one senior or boss to report back to.
Typically, the relationship between the freelancer and client does not include as many regulations as the employment contract. And a freelancer can reject any task or project should it not fit their skills or interest.
The pros and cons of freelancing include:
- New clients and income are unlimited and can be set by the freelancer.
- Involves more freedom and a flexible schedule.
- Does not involve one senior or boss to report back to.
- Work can be done from anywhere (remotely).
- Unstable income.
- No paid sick leave or vacations.
- No benefits such as medical aid or pension funds, unless paid for by the freelancer.
Interested in succeeding in a freelancing career?
Being a freelancer can be a lot of fun and offer you more flexibility in your day-to-day life, but it is important to remember that you will be your own boss. This means that your next paycheck is completely dependent on you!
Luckily, there are many tools that can help you succeed in freelancing. It’s important to make use of them, especially when you’re new to freelancing. They can help you navigate the uncertain waters of self-employment and help you stay organized and motivated.
Some tools to consider in your new career as a freelancer include:
- Communication apps to reach your new clients. This can be via email or online chat platforms such as Slack or Skype.
- Online collaboration tools to help you collaborate with your clients.
- Organisational tools that allow you to schedule tasks and projects to help you stay organised.
- An online platform or freelance partner to market yourself, such as Orderly.
While making the career change from full-time employment to freelancing can be a big move, it doesn’t have to be overwhelming. There are plenty of incredible tools you can use to help you succeed, effortlessly. Get in touch with Orderly for more information on how we can become freelance partners.