Self-employed Versus Employee – the Better Choice

Original draft date: October 11, 2010

The question of whether to be a self-employed individual or work as an employee is a question which every person inevitably faces in the world of business. Although both are great ways to earn money, there are also distinctions that make each one worthy than the other.

When it comes to availability of time, being a self-employed individual is a great advantage. He has the freedom to decide when to rest from his work and do what he pleased. No one can dictate him when and not to work. He has the total control of his time. On the other hand, a hired employee will typically be compelled to finish his work, for it is his job that determines when he should stop. He can’t have a holiday when he wants to, without worrying that he might be fired from his work.

However, when work benefits are in the picture, it is an employee’s turn to be elated. He is entitled to various benefits such as salary loans, 13th month pay, and retirement benefit to name a few. These are given to him by his employer in addition to his salaries.
Conversely, a self-employed individual has no employer, and so no one is to give him these benefits. He is left to supply himself with them on his own.

Another distinction would be the nature of income that both parties receive. Being a self-employed individual means having a varying income. He can either receive a very high or very low income depending on the situation of the business. That’s why, an individual who is self-employed tend to become more dedicated to his work to boost his gains to the max. On the contrary, an employee receives a fixed compensation. It won’t increase nor decrease unless his position is changed. The status of the business has almost nothing to do with his salaries. As a result, his dedication to his job varies. There’ll be time when he is highly dedicated and another when he is just interested, depending on his motives.

An employee and a self-employed individual may both claim that their position is favorable than the other. But, although their distinctions really make each one of them worthy to be chosen, still they are both great ways to earn money in the business world.