If you’re a millennial, you know that the job market looks a lot different than it did for previous generations. Nowadays, more and more people are becoming independent contractors instead of employees. To understand the difference between the two, it’s important to look at both sides of the coin – the pros and cons of being employed versus working as an independent contractor
Let’s dive in and see what these differences really mean for your career.
Pros of Being an Employee
The main benefit of being an employee is the stability that comes with having a steady paycheque every month. As an employee, you are also likely to have benefits such as health insurance, vacation time, and retirement plans. Many employers even offer flexible hours or remote work options so you can better balance work with life demands like childcare or other responsibilities. There may also be opportunities for career growth and advancement within the company that can give you additional job satisfaction.
Pros of Being an Independent Contractor
Being an independent contractor gives you more freedom than being employed by someone else. You get to choose which jobs to take on and when, allowing you to pick projects that fit your skillset and interests best. You’re also in charge of setting your own rates and negotiating contracts with clients, giving you more control over how much money you make.
Plus, with no employer withholding taxes from your paycheques, you can often save more money in taxes by filing as an independent contractor rather than as an employee – and with so many options for self-employed home loans these days, many of the hurdles that used to exist for freelancers looking to settle down have been removed.
Cons of Being an Employee
The main downside of being employed by someone else is that there is usually less flexibility when it comes to working hours and taking time off for vacations or other personal reasons. As an employee, you’re also required to adhere to certain rules set forth by your employer – like dress codes or attendance policies, for example – that may not give you enough autonomy for your taste.
Lastly, depending on the workplace culture at your job, advancement opportunities may be limited due to a lack of diversity among upper management positions or senior roles reserved for those who have been employed there longest.
Cons of Being an Independent Contractor
Unfortunately, the trade-off for having more freedom as a contractor could come at the expense of some financial stability (at least initially) as it takes time to build up regular clients who will pay competitive rates for your services.
Additionally, since contractors don’t typically receive benefits like healthcare coverage or retirement plans through their employers (clients), they may need to purchase these items themselves if they don’t already have them in place prior to becoming self-employed.
Lastly, contractors are expected to handle their own taxes throughout the year, which can be tricky if they don’t have experience doing so beforehand.
There are both pros and cons associated with being either an independent contractor or a full-time employee; it just depends on what works best for each individual situation
Consider all aspects carefully before deciding which path is right for you – from financial considerations like tax breaks and benefits packages, through to lifestyle matters such as working hours, and all the way down to intangibles such as career growth opportunities or simply finding something that brings you joy!
With careful deliberation, anyone can make sure they’re picking the best option possible based on their unique needs. Good luck!