Freelancing Vs Office Job. Which is Most Profitable.

June 26, 2020
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Freelancing Vs Office Job:

The common opinion that works on freelance as a mass phenomenon is a product of the 21st century, which has spread due to the development of technologies and job cuts, which is actually fundamentally wrong. Freelance has been around for a long time. For the first time this term in the meaning that we use now appeared in the novel “Ivanhoe” by Walter Scott, that is, in 1819. So the writer called hired warriors of the Middle Ages. But if we recall that the events of the novel date back to 1194, and the very concept of a “mercenary” can be found long before that, the conclusion suggests itself.

Which is Most Profitable:

Apparently, people striving for freedom in the field of labor have always been, and neither our century nor the previous one has brought anything essentially new to this area. Today, according to Wikipedia, “a freelancer (from the English freelancer is a freelancer, a mercenary; figuratively, is a free artist) is a person who does work without concluding a long-term contract with the employer, who is hired only to perform a certain list of work (freelance worker ) “. From a legal point of view, I would like to add to this definition that freelancers in relation to customers are contractors, and not employees, since the agreements concluded with them are regulated not by the Labor Code of the Russian Federation, but by the Civil Code of the Russian Federation.

If an employment contract is signed, even if it is urgent, then the employee who concluded it cannot be considered a freelancer. For customers, cooperation with freelancers is generally beneficial, as it has quite significant advantages both from a professional and financial point of view. But you can not help but pay attention to the available cons. For people who choose to work on a freelance, there are also both positive and negative points. To understand the issue of interaction between freelancers and customers, consider it in more detail. The advantages of freelance The positive aspects of this phenomenon, as already mentioned, are both for freelancers themselves and for their customers. We will consider them separately since they coincide little in anything. For customers Professionalism of freelancers.

The advantages of a freelance:

Most often, freelancers are people who have already achieved a lot in their profession, have solid work experience, broad professional horizons and other positive qualities. Just at the moment they already want to work for themselves, and not “for uncle.” This is an almost mandatory component, otherwise, the freelancer simply will not conclude a single contract due to a weak resume. The main thing here is to understand that this is just such an instance, and not a person who is not capable of systematic work. Decision-making skills Freelancers are usually people who are able to be responsible for their actions, who are able to make decisions and who do not need constant leadership.

This is logical because the ability to start organizing one’s own life requires the listed character traits. Due to this, you can significantly save time that you usually spend on communication with employees who are afraid to take a step without leadership. In this case, it is important not to confuse the politeness and desire to please the customer with indecision and inability to act independently. Teamwork Working on an order, freelancers, as a rule, do not intrigue, do not quarrel without dealing with others, do not try to occupy leading chairs, and do not create a host of problems associated with working in a team. For freelancers, this simply makes no sense, since they will finish the work and move on to another customer, another team. Today’s environment is only temporary companions.

For Customers:

Professionalism Of Freelancers:

They will not receive any benefit from the conflict, therefore, they are unlikely to become its source. Of course, there are exceptions, but they are the result of only the malicious nature of the nature of a particular freelancer and not the rule. Guarantee of work (services) Since the freelancer is associated with the customer by the contract (as a rule, the provision of services), he is obliged to fulfill the agreement. A freelancer may refuse to fulfill his obligations unilaterally, but he will have to fully compensate the customer for the losses incurred by such a decision (Article 782 of the Civil Code of the Russian Federation).

This distinguishes contractors from full-time employees. The latter can leave the employer at any time at their own discretion, leaving the former bosses with a heap of problems, unfinished projects, and outstanding work, while the employer will still be forced to pay off the “defector” completely and the maximum that he can make him do is work two weeks. Lack of social obligations Since the freelancer is not an employee of the customer company, the latter does not bear social obligations regarding him. That is, it does not pay holidays, sick leave, maternity benefits, etc., but only pays a fee for the work done or the services rendered.

Decision-Making Skills:

From a financial point of view, this is certainly beneficial. Tax burden reduction This “plus” arises only if the freelancer who has concluded an agreement with you is an individual entrepreneur. In this case, he pays taxes for himself, it is up to the customer to accept the work or services and pay the fee. If the freelancer has not registered IP status, then all insurance payments will be borne by the customer. However, in this case, there is a benefit associated with mandatory payments, albeit small. Contributions to the Social Insurance Fund of the Russian Federation are not charged on payments under civil law contracts (Clause 2, Part 3, Article 9 of Federal

Team Work:

Depending on the category of organization, the benefit compared to a full-time employee in 2012 may amount to 1.9–2.9% of the payment amount. Contributions “for injuries” are also not charged, unless otherwise provided by the contract. For freelancers Lack of work, schedule Freelancers are not employees of the customer company and are not required to comply with internal labor regulations, working hours and other restrictions. That is, they do not have to appear at work at nine, leave at six, and dine only from one to two. They themselves are the owners of their time and are only responsible for the quality and timing of work performed or services rendered, and not for how they do it.

Guarantee Of Work:

Ability to work on multiple orders Since the freelancer works for the result, he can manage his time on his own. Therefore, if such an opportunity exists, no one bothers the freelancer to fulfill several orders at the same time, which is very interesting from a financial point of view. Professional growth Freelancers typically work for multiple customers. Consequently, in the course of their work, they have the opportunity to study different business segments, to deal with solutions to diverse issues and thus grow professionally. Special relationships with the team Freelancers interact with the customer’s team, but they, as they say, do not need anything from these people. There is no rivalry for positions and salaries, there is no need to “bend”, you do not need to tremble that you will be “lined up” and fired.

You can just chat with pleasure. Ability to choose an order If a freelancer has already earned a name for himself and he has orders, then there is always the opportunity to refuse the work that you do not like. However, if there are few orders, then a freelancer can still do this and this will be his choice, not the choice of the employer. Freelancers cannot be fired Freelancers are not afraid that tomorrow they will fall under the hot hand of the authorities and they will be fired “of their own free. Of course, the Labor Code of the Russian Federation also protects the rights of workers, but in practice, freelancers are more protected.

Tax Burden Reduction:

In addition, the absence of fear of being dismissed saves a lot of nerves and contributes to the fulfillment of Anton Pavlovich Chekhov’s “covenant” to squeeze out a slave from himself drop by drop. Cons Freelance If there are pluses, then, as a rule, there are also disadvantages. And the interaction of freelancers with customers is no exception. We will also consider them separately since the minuses on both sides are very different. For customers The source of “free-thinking” The relationship between freelancers and customers is a partnership, not subordinate. A freelancer cannot be ordered – only agree. Consequently, control over the process of performing work or providing services is somewhat reduced, and the employer is not able to call a freelancer and say: “Do it again …”, and for the same money.

Also, according to many employers, due to the fact that freelancers are not required to comply with the internal work schedule and other rules adopted by the customer, the level of corporate culture is reduced, and the personal qualities inherent in the “average” freelancer give rise to “free thinking” in the work collective. Responsibility A full-time employee can almost always be fired “of his own free will”, slightly intimidated. With a freelancer, this will not work. The customer is liable under the contract, just like the freelancer himself. And, in which case, it will have to compensate for losses (Article 15 of the Civil Code of the Russian Federation) and pay interest for the use of other people’s funds (Article 395 of the Civil Code of the Russian Federation). Error in choosing a counterparty You can make a mistake when choosing a freelancer and get unsatisfactory work results or poor-quality services.

Suggestion:

To avoid this, you need to familiarize yourself with the resume of the freelancer with whom you are going to sign the contract, as well as find out on what projects he worked before. Communication problems A freelancer has not worked in your company before and does not know anyone in it. Communication problems may occur. To avoid this, it is necessary to stipulate in advance the circle of persons with whom the freelancer will interact, and conduct all necessary meetings and negotiations.

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