To deal with the effects of the pandemic, cut costs, and stay competitive, businesses around the world are transitioning to more flexible working arrangements. This shift is proving to be quite advantageous to one specific type of worker: the independent contractor. Independent contractors generally perform certain types of services for a client or company but are not considered as employees.
Being an independent contractor has become a very satisfying and rewarding job. It even has more benefits to offer than many typical full-time jobs. In this article, you’ll learn about what an independent contractor is and the benefits of becoming one.
What Is an Independent Contractor?
An independent contractor is a person that provides labour, services, or goods to another individual or organization. Independent contractors work alone and they’re not part or employed by a business, instead, they work together with a business as a third party. A good example of an independent contractor is a Postmates driver. They’re an independent contractor that provides delivery services.
Working as an independent contractor is a great way to develop your skills and grow your business without the constraints of traditional employment.
Benefits of Working as An Independent Contractor
Since they work as individual entities, independent contractors don’t receive the same benefits that most employees receive from their companies such as retirement plans, insurance, and other work benefits. They also don’t have the same protections that traditional employees receive through labour laws.
Nevertheless, independent contractors reap certain rewards that full-time employees may never get to experience. Check out the benefits of working as an independent contractor below.
1. You Can Be Your Own Boss
One of the benefits of being an independent contractor is freedom. As an independent contractor, you have complete control of your business. You can decide who you want to work with and who you’ll work for.
The people who will you work with will be paying you for your services not because they’re your employers but because they are your clients. Being an independent contractor means you’re also the boss and this can help a lot in giving you a sense of greater job security than traditional employment.
2. Provide Flexibility
As an independent contractor, you can enjoy flexible working hours. You have a self-regulated working arrangement, which means that you can set your own hours. You can work the hours that best fit your lifestyle and preferences, and you don’t have to worry about clocking in or meeting your employer’s designated schedule.
Since you’re not bound by an employment contract between an employer and employee, you’re free to set your own working hours, from the moment you accept the contract and until it’s finished. You can set up yourself so you can do your work at home. Also, an independent worker is only required to complete a particular job with their client.
3. Maintain A Good Work/Life Balance
Another great benefit of working as an independent contractor is that it allows you to maintain a good work/life balance. It’s perfect for people who don’t want to miss out on anything in their life. Since you are your own boss, you can create a very flexible working arrangement that suits your lifestyle.
4. Earn More Income
Being an independent contractor also means you can set your own price for your services. You can decide however you want to be paid. If you want to be paid at an hourly rate, you can do so at above the market rate.
You can even earn more money if you know how to market yourself properly as an independent contractor. If you put a high value on your services and your demand is high, your income is going to be much higher than a traditional employee.
5. You Are Not Bound by Labor or Employment Laws
Another important advantage is that most independent contractors do not fall under the employment laws of their employers. This means that they can take advantage of their skills and talents and work for themselves.
There is one more benefit of hiring independent contractors. Since they work on their own, they’re not limited by the restrictions that your traditional employees may have. For example, independent contractors are not bound by mandatory vacations or sick leave. They can take as much time off as they like as well. It all depends on their individual contract that they’ve signed with their clients.
6. You Can Enjoy Employee Benefits as Well
One of the disadvantages of working as an independent contractor is that they usually don’t enjoy the same benefits as traditional employees do. But that’s not always the case anymore.
You can also enjoy employee benefits as well. If you are lucky enough, you can work with a company that also offers benefits packages, insurance, health plans, etc.
7. Test Out A New Field
Working as an independent contractor also allows you to test out a new field of expertise. If you think that your skills are not suited to your current field or if it’s not turning out to be that profitable, you can always move on to a new industry.
Being an independent contractor means you don’t have to commit yourself to a particular industry. You can always move to a different field of expertise if things don’t work out as you expected them to be.
8. Gain Lots of Valuable Experience
Moving from one contract to another allows you to gain valuable experience along the way. By working as an independent contractor, you have the opportunity to meet new people, new clients, and use new tools. All of these things will help build up your resume and make you a more desirable independent contractor.
Being an independent contractor is not without its challenges. You’ll encounter different problems along the way. But if you don’t mind moving from one job to another and gain new experience along the way, being an independent contractor could be the ideal setup for you. With the above list of benefits you get to enjoy by working as an independent contractor, you might find it as the best possible and most rewarding work you’ll ever have.