Why Isn't Being A Salaried Employee As Appealing As It Used to Be?

According to findings by Statista: “As of April 2024, there were around 4.3 million self-employed workers in the UK.”

 In the US the figures are even more compelling. An Upwork study found that 64 million americans freelanced in 2023, Adding $1.27 Trillion to U.S. economy

These large pools of professionals are choosing freelancing over traditional jobs for several reasons.

As we all know, the pandemic made people rethink their priorities, with many seeking more flexible work. On top of this, new technologies like cloud computing and portable devices have made remote work more accessible for IT professionals.

Also, more people than ever before now know how to start freelancing, find clients, and work from home, thanks to the wealth of information available online.

With all that said, freelancing isn’t for everyone. In this article, we will explore the benefits and drawbacks of salaried jobs vs freelancing with tips on how to become an IT freelancer if it feels like the right option for you. 

What are the downsides of being an employee vs being self-employed?

Most people grow up expecting to one day work for a company. It is more or less the norm and many go through life never questioning other options. But just because it’s the norm, does not mean that there are no downsides to being an employee. Let’s look at just a few: 

• Monotony and routine: Working for the same company for a long time can leave you without any real challenges or opportunities for growth, in contrast to the variety of tasks available to individuals who work for themselves. This is in stark contrast to the diversity of projects available to self-employed individuals.
• Limited flexibility: Employees often find themselves tethered to strict working hours, leaving little room for flexibility. Most companies still adhere to the 9-to-5 model, despite it being scientifically proven to be inefficient. 
• Work-Life Balance Challenges: The aforementioned flexibility issues can also lead to work-life balance problems. Many companies still rely on affect and pressure employees into working overtime, which can cause stress, burnout, and dissatisfaction with your job.
• Limited earning potential: The simple truth is that, when working as an employee, there’s a maximum amount of money you can earn, that you will never be able to go over. Promotions and raises are generally infrequent or inconsequential, and there is limited opportunity to increase your income beyond the company’s pay structure.
• Hierarchical Dependence: In a traditional salaried position, you are subject to the company’s hierarchy and decision-making processes. This can limit your autonomy and make it difficult to directly impact the direction of your work.

Self-employment solves a lot of these issues. As a freelancer, you set your own schedule and work whenever and from wherever you want. Your earning potential also increases exponentially as you grow and mature in your freelancing journey while multiplying your number of clients. You also have control over which clients you decide to work with, ensuring renewed excitement about new projects and the ability to select only the clients that will respect your independent status.

What are the benefits of salaried employment compared with freelancing ? 

Despite the downsides listed above, there are, of course, a multitude of benefits to being an employee instead of being a freelancer. Here are some of the most notable benefits of being an employee. 

• Teamwork and a sense of belonging: Working as an employee can provide the opportunity to collaborate with colleagues, share knowledge, and benefit from a team spirit. This interaction can foster a sense of camaraderie, creativity, problem-solving, and professional growth. This is harder to find as a self-employed worker.
• Financial and administrative simplicity: As an employee, you receive a regular paycheck, eliminating the need to chase invoices, handle bookkeeping, or file your own accounts. This fully delegated financial process allows employees to focus more on their work responsibilities without the added burden of administrative tasks.
• Comprehensive benefits: Comprehensive benefits packages that include health insurance, retirement plans, paid time off, and other perks are one major pro of employed work. These benefits provide both financial security and peace of mind.
• Easier access to loans and property: Being a salaried employee can make it easier to obtain loans, mortgages, and other forms of credit. Lenders often view steady employment as a positive indicator of creditworthiness. On the other hand, lenders tend to be weary of freelancers as their income can vary greatly from month to month and year to year. 
• Predictable Income: Doubtlessly, the single most compelling reason for most salaried employees is the advantage of receiving a predictable income stream. This allows them to budget effectively and plan for the future with greater certainty.

In addition to these benefits, salaried employment often offers opportunities for training, professional development, and career advancement within the company. While freelancing can provide a high degree of independence and flexibility, it often comes with the added responsibilities of managing finances, marketing, and business development. The choice between salaried employment and freelancing ultimately depends on individual preferences, priorities, and risk tolerance.

How you can become a freelancer with all the benefits of a salaried employee

What if we told you that you could have the best of both worlds and combine the benefits of a salaried position and the freedom of being a freelancer? The way to achieve this is to work with a managing company like Hightekers. 

Hightekers is an innovative solution that bridges the gap between full-time employment and freelancing. We provide a unique platform for IT and engineering consultants across Europe, providing them with a comprehensive suite of benefits typically associated with traditional employment. Hightekers facilitates freelancer independence by granting professionals the freedom to select their clients and projects. This flexibility ensures that individuals maintain control over their professional trajectory while avoiding the monotony of fixed roles. Simultaneously, Hightekers shields freelancers from the administrative burdens commonly associated with self-employment by handling invoicing, reminders, bookkeeping, regulatory filings, and more. 

Freelancers partnering with Hightekers also benefit from fixed monthly payments, combining the predictability of a traditional salary with the flexibility of freelance work. This stability is further augmented by access to statutory benefits. Beyond financial considerations, Hightekers elevates the freelancing experience by offering a supportive ecosystem. Dedicated consultant support coordinators stand ready to provide guidance and assistance, ensuring that freelancers have the necessary resources and support to navigate challenges effectively. Additionally, we foster a specialized network, connecting professionals within the same field, and creating opportunities for collaboration and knowledge exchange. 

In short, here is a ‘best-of’ of the benefits of working with Hightekers:

• Freelancer Independence: Choose clients and projects independently.
• Administrative Ease: Hightekers handles invoicing, reminders, bookkeeping, and regulatory filings.
• Monthly Fixed Payment: Assurance of a stable income with access to statutory benefits.
• Permanent Employee Benefits: Inclusive of sick pay and paid time off.
• Take-Home Pay Maximization: Efficient payment and tax system for optimized earnings.
• Full-Time Work Contract: Ensuring a steady and reliable income stream.
• Earnings-Based Incentivized Referral Program: Financial incentives for referring colleagues.
• Cash Advance: Immediate access to funds for unforeseen expenses.
• Management Platform: Tools and resources for effective business management.
• International Mobility: Work on projects across Europe.
• International Invoicing: Simplified invoicing for clients in different countries.
• Dedicated Consultant Support Coordinators: Assistance and guidance when needed.
• Specialized Network: Connect with other professionals in your field.

What are the jobs best suited for freelancing over salaried positions in IT, Tech And Computing ?

The attractiveness of salaried positions in IT, tech and computing is intricately linked to the industry’s unique demands and the preferences of skilled professionals. Unlike traditional sectors, many IT jobs can be performed remotely, and developers often cherish the ability to work from home due to the need for personalized setups and a desire for flexibility. In this context, professionals in IT roles are not just employees; they are in-demand assets seeking workplaces that adapt to their needs rather than the other way around.

As individuals in IT positions are in high demand, the job market leans in their favour, granting them the leverage to seek employment arrangements that align with their preferences. Many professionals in these fields now prioritize flexibility, autonomy, and the ability to tailor their work environment. The most sought-after companies are those that recognize this shift and are willing to adapt, fostering a culture where employees are valued not just for their skills but for the unique needs and preferences they bring to the table.

Here are a few positions that are ideal for freelancers: 

• Web Development
• Business Analyst & Data Analyst
• Cloud Architect
• Cybersecurity Experts
• Systems engineers
• IT consultants 
• Network Architects
• Data Base Administrator
• And many more!

The decision to transition from a secure permanent position to the uncertainties of self-employment can be challenging, particularly considering the administrative complexities involved. However, embracing change doesn’t have to mean sacrificing stability. Solutions like Hightekers present a compelling alternative, offering the best of both worlds. By partnering with Hightekers, professionals can enjoy the independence of freelancing while reaping the benefits traditionally associated with salaried employment. From financial simplicity and comprehensive compensation to unique perks like the earnings-based referral program and international mobility, Hightekers stands as a testament to the evolving landscape of work—a landscape that champions flexibility, autonomy, and stability.

Learn more about Hightekers