But contractors typically run their own businesses. Contractors may work as consultants, temporary employees, freelancers, or other non-payroll positions. A contractor is not under an employer’s control regarding the manner, means, and results of work performed. They operate their own business and offer their contracted services to the public. Many people are embracing this way of working. Despite not always having a consistent income, contractors enjoy advantages that full-time employees do not.
What Are the Advantages of Being a Contractor?
The gig economy has increased in popularity in recent years. At least 57 million Americans, or 35% of the U.S. workforce, freelanced in 2019, according to a survey by Upwork and Freelancers Union. What’s the appeal? Here are some key benefits of working as a contractor.
Be Your Own Boss
One of the biggest advantages of being a contractor is having independence. Since you’re self-employed, you control your work hours and the projects or assignments you take. You can also contract with multiple companies instead of a single employer, which in many ways can provide greater income security.
Work From Anywhere
If you favor less commute time and more freedom, independent contractors typically can work anywhere. For instance, as a freelance writer, you can work from home, at your favorite coffee spot, or even while traveling around the country. As long as you have access to a computer and a stable internet connection, your workplace can be wherever you are.
Set Your Own Schedule
Being a contractor versus being an employee means not being locked into a rigid schedule. You can build as much flexibility as you need into your day. With control over the hours you work and the projects you accept, you can create a work schedule that fits into your life instead of the other way around.
More Work-Life Balance
Trying to juggle work and home duties can challenge employees working on a fixed schedule. But working as a contractor can give you more work-life balance and the ability to prioritize important things in your life. By avoiding hours in traffic, you’ll have more time to spend on favorite activities with your family and friends. You may also find increased productivity when working for yourself, with more opportunities to decompress during the day.
Who Is a Best Fit for Contracting Work?
An ADP Research Institute study shows that 72% of independent contractors state they chose contracting work over a traditional job. People who want the freedom and flexibility of choosing their own assignments, work hours, and clients are likely the best fit for working as an independent contractor. Conditions some contractors may find challenging include working irregular hours and purchasing their own work equipment. Other challenges mentioned in an independent 2019 contractor study conducted by Washington State’s Department of Commerce include:
Enforcing contractsPersonal safetyIsolationWeaker sense of economic securityFears of financial instability if making mistakesLower consistency in reported earnings
Notably, the study’s participants said the benefits of flexibility and choice outweighed any economic insecurity. One example of a good fit might be a virtual assistant who wants to work with many clients instead of a single employer. Other examples are people who frequently move, such as military spouses, or people who like to work remotely while traveling. The bottom line is that deciding if working as an independent contractor is the best fit for you depends on your priorities and the trade-offs you’re willing to make.
