A Compelling Reason to Freelance: Economics
June 17, 2008 |
Economic Issues
In the ever-changing world of work, the freelancing concept has become a win-win proposition for both freelancer and client. Many freelancers got where they are because of the massive corporate downsizings that started occurring in the early 1990s. The nature of work began changing and the concept of lifetime employment became a thing of the past. If you could find a job to replace your old one, you soon discovered that your length of tenure became shorter and shorter as companies constantly retooled or went through several iterations of trying to figure out who they were. Faced with this constant uncertainty, employees decided that going solo and off on their own was worth looking into.
In turn, companies, now faced with fewer workers, still had a need to get the work done that was formerly performed by their displaced colleagues. Enter the freelance consultant.
In some cases, companies like Xerox and Connecticut Mutual Life have offered “packages” to their middle managers in some departments as an incentive to leave and then turned around and offered freelancing assignments to those same individuals, often performing the same job that they just left! Does that sound crazy? Maybe so, but companies found that it made economic sense since they no longer had to pay the “hidden payroll” expenses of benefits and employment taxes.
So you know the demand is there. What other economic reasons are there to freelance? Here are a few:
- Working from home saves commuting time. While you may have to work on-site for some employers, in most cases, the work you perform can be done from your home office, saving on gas and wear and tear on your vehicle. This is known as telecommuting.
- Home office tax deduction. More on this in Freelancing Money Matters.
- You can actually make more per hour than doing the same work as an employee.
- You save money on clothing and dry cleaning since your wardrobe is likely to be less formal and more casual.
- You maintain control over your rates and can give yourself a raise whenever you feel it’s merited.
- You have better control over your income by choosing to work either more or less.
- You may be able to save on child care by working around your spouse’s schedule.
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Time June 17, 2008 at 3:28 am
[...] Software Free wrote an interesting post today onHere’s a quick excerptEconomic Issues In the ever changing world of work, the freelancing concept has become a win-win proposition for both freelancer and client. Many freelancers arrived at where they are because of the massive corporate downsizings that started occurring in the early 1990s. The nature of work began changing and the concept of lifetime employment became a thing of the past. If you could find a job to replace your old one, you soon discovered that your length of tenure became shorter and shorter a [...]