By Jenny Holt
According to the Bureau of Labor Statistics, 15 million people in the U.S. were self-employed in 2015. That’s an increase of over one million from the previous year and represents over 10% of all U.S. workers.
Comprising the self-employed are freelancers, contractors, and temporary employees. These types of workers make up the so-called ‘gig economy,’ in which workers work where and when they want and are paid for the work they do. These workers typically do not receive benefits and do not have the job security of an employee. Still, becoming self-employed is attractive to many people ranging from young entrepreneurs to retirees and also with those recently made unemployed and who want a quick route to earning money while looking for a new job.
The Real Advantages of Choosing Self-Employment
The advantages to being self-employed and to hiring the self-employed are many.
For the self-employed, you can typically make your own hours. You can work a full 40-hour week if you want to, or you can work fewer hours if you choose. If you want to take three months off to go to Europe, you can do that.
You can usually work where you want. Many self-employed people have an office in their home, or work from a coffee shop or library. You can rent workspace by the day, week, or month if you have a meeting or a project that requires collaboration. In some cases, a client company will give a contract or freelance worker space in their offices for the duration of a project.
Self-employed people can often charge a higher rate per hour than an employee would receive. Because they don’t receive costly benefits, and they can be discharged as soon as the project ends, a company can pay a temporary or contract worker more than they would pay an employee.
Take Advantage of your Unique Skillset
For those who have a very specialized area of expertise, or who don’t want to spend many years doing the same thing every day, self-employment can be very attractive. A single company may not need your expertise on a full-time basis, so you can put it to work for several different firms. Plus, you can move from client to client as often as you like, without risking being labeled a ‘job hopper.’
From the employer’s perspective, they only pay for the work they need. The hiring process is typically shortened because it is easier to terminate a relationship with a contracted worker than an employee. Many companies hire contract workers as a stepping stone to a full-time position. If the person does a good job and works well with the other members of the team, they may be offered a full-time job with benefits.
Given these advantages for both employers and workers, the trend toward self-employment is likely to continue.
