Thinking about becoming an independent contractor? Here’s how to decide
In industries like engineering and IT, employers are increasingly relying on independent contractors to perform a variety of roles within their organization.
The differences between employee and contractor are vast. Unlike traditional full-time employees, independent contractors provide their services as an independent entity. Self-employed, these professionals absorb the responsibility of securing their own work, paying their own taxes and ultimately running their own miniature enterprise.
The attraction to independent contracting (vs being a full-time employee) is easy to identify: greater flexibility, control over pay, flexible hours and the ability to work from anywhere. However, as lucrative as it may be, the independent contractor life isn’t for everyone. Thinking about becoming an independent contractor? Consider these four factors when making your decision.
Income
Choose the independent contractor path if…
You have strong management skills when it comes to your finances. Although the pay may be sporadic and may require you to take care of invoicing and chasing down payments while also budgeting and remitting your own taxes, full control over setting your pay rate (with the tantalizing prospect of unlimited earning potential) is a big draw for the independent contractor path.
Choose to be an employee if…
Budgeting and finances aren’t your forte or you just prefer a reliable, regular income. Paid by the company at regular intervals, compensation is generally guaranteed regardless of whether you’ve taken a sick day or a holiday. Plus, taxes are remitted on your behalf. You also typically won’t have the large start-up costs or business expenses an independent contractor might have, either.
Control
Choose the independent contractor path if…
You like calling the shots. As an independent contractor, you have the control to pick the jobs, duration and compensation that best suits your needs. Being your own boss gives you full control over what, when and where you work.
Choose to be an employee if…
You thrive under direction. Employees report to a boss or supervisor who assigns work and responsibility, provides annual performance reviews and offers raises or promotions accordingly. The employed path might also be for you if you find the prospect of securing clients, doing the work and obtaining payment daunting.
Benefits
Choose the independent contractor path if…
You’re comfortable sourcing and paying for your own benefits packages. Independent contractors can still purchase customized benefit plans from third party vendors. Learn how to apply for supplementary insurance here.
Choose to be an employee if…
You’d prefer having an attractive compensation package. Take advantage of packages offered by employers and enjoy benefits like extended health coverage, flex time, paid vacation, profit sharing and more.
Opportunities
Choose the independent contractor path if…
You’re interested in uncovering new and exciting opportunities daily. As an independent contractor, you’re constantly networking; meeting new people and pursuing new projects is part of the job. If you’re self-motivated and can put in the work to build a client base, you can reap the rewards of this self-built career.
Choose to be an employee if…
You’re looking to climb the corporate ladder and achieve professional success. If getting into management is your goal, consider working your way up through an organization that can give you the skills and broad experience you’ll need to succeed as a manager. Likewise, if you’re motivated by teamwork or derive satisfaction from group dynamics, working in an organization and being able to work with colleagues is probably your best bet.
For professional support that includes job opportunities and career advice, rely on the recruiters from Roevin. Contact a Roevin branch closest to you today to get started!
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