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 find out that both have their advantages to consider, and the choice is not an easy one. In this article, we will discuss the benefits of freelancing and those offered by traditional work, and then you can decide for yourself which one fits your needs better.

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 otherwise they 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 are working by yourself. 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 which reflects 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, and this ensures 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 that are due to being insulted or any form of discrimination happens, you can pursue your rights in court.

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

3. Professional Growth:

Many companies nowadays offer positions in a level-structured environment that allows for the 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 keep their workers motivated to remain loyal and upgrade their position in their workplace.

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

How Stable is Freelancing?

1. Independence and Flexibility:

Since freelancing is not tight for a specific company, you can choose among a variety of clients, tasks, and projects. The work is not repetitive and you get to learn a lot of new information in short periods of time. 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 consists of 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 are what ensure you will always be offered new projects. Freelancers who reach that phase when the offers they have 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 the freelancers. Even in the case of one project being 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 provides them with the stability to adapt to the constantly changing work environment nowadays. Such an advantage surpasses the skills of employees who are focused 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

Freelancers who have better skills can find and be approved for new projects more easily, and their overall marketability increases. Professionals prefer to work with the most skilled workers, as this would provide them with the highest possible quality of work fulfilled.

Both working as an employee and as freelancers have their leverages and downsides. Working for a company can provide a sense of 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, which ultimately results in better adaptability. It’s up to the individual to decide which one their character fits.

Freelancing is better for people who can’t fit into a well-structured organization and have the spirit of entrepreneurs. Employee jobs would be more suitable for people who like already set environments with particular rules and time shifts. It doesn’t mean that as an employee you will not grow your skills, 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?