Indeed, like the egg and the chicken, this question is (almost) impossible to answer! Just start asking this when you are having dinner with family or friends, you’ll see the debate become quickly animated! But why is this topic so trendy?
The freelance economy is growing rapidly; so rapidly, in fact, that if it continues at the current rate, it’s estimated that freelancers will make up over 50% of the total workforce by 2027. Both freelance and permanent positions have their own advantages and disadvantages, so in this article, we’ll identify some of the benefits and how you can take the best of the two worlds to create a situation that suits your activity as a developer.
You can get more information below, but we also created a bot to know which would suit you best :
Benefits of being a freelance developer
Money
Depending on the clients and projects you take on, you may end up earning much more money than you would as an employee. And if you want to work more hours to earn a higher income, you are free to do so! Therefore, you will probably see an increase in your bank balance.
Wether you want to work as a freelancer or employee, we have created a bot to help you know how much you can earn !
Boomer alert: Due to your status, you will not benefit from several advantages as employees do. You will lose the certainty of a fixed monthly wage, paid holidays and the certainty of having a job. This can cause a lot of stress, which should not be overlooked!
Be aware to negotiate the payment date in the contract with your client in order to avoid any surprises. You'll need to send them reminders and keep good records to make sure that all your assignments have been paid for. To avoid that, you can work with a recruitment company which makes sure that you are paid on time.
Schedule and location
Unless you have a client who asks you to work at a fixed time, you can negotiate to work your own hours. You want to work in the middle of the night? Do you want to have a drink at 3:00? Don't you want to work on Monday? As long as you finish your assignments on time and your boss is ok with it, it’s possible!
Some clients will ask you to work from their offices. But it’s also negotiable to choose where you work. You can work from home, from a coworking space or even from abroad!
Control and autonomy over your career
In general, freelancers have greater control over how their career develops. This is because they can monitor and adapt the direction their career is heading in while working on short-term projects.
Freelancers enjoy also complete autonomy over their projects, by choosing which ones they accept. As the single point of contact with their client, they have a clear overview of their project.
Boomer alert 2: don’t underestimate the administrative tasks that can become a real burden if you are not organised enough! Set aside one full day a month to take care of this and get your paperwork in order. You also need to surround yourself with the right people, including a good accountant to help you make the right decisions.
Benefits of a permanent position for developers
Security & team environment
As an employee, you enjoy financial security, knowing when you will get paid and that it will be the same amount each month, including when you’re on holiday or off sick. There’s also a chance you could receive bonuses, 13th month, company car, fuel card, and so on.
Humans are social beings by nature. Once you find a workplace within a company culture that suits you, you might even feel like it’s an extension of your family. You know your colleagues on a personal level, to the point where you know when Vero from accounting has a rendez-vous with her cat’s shrink. It also makes you work more efficiently, because you know exactly who to ask when you need information about or help with something specific.
Let’s also mention the aspect of stability that the employee status can provide. Usually it means less pressure, less hours and hence more time for family and friends.
Trainings & mentoring
If a company has made the effort to select and hire you on a permanent basis, they will be eager to keep you for a long time. This means they’ll be willing to invest in you, perhaps providing training programmes and courses.
Another key benefit of permanent work is being able to learn from colleagues and take advantage of their knowledge. Working with experts in an environment with open communication channels allows you to learn a lot.
How can I make the most of both?
With all of that in mind, how can you combine the benefits of freelance and permanent work?
Complementary self-employed
Your complementary activity can be a stepping stone to full self-employment. This way, you can explore your possibilities carefully and avoid throwing yourself into a vacuum with your eyes closed. You give yourself time to learn, build a network and develop a clientele before moving on to your main activity.
In the meantime, you maintain your rights as an employee: from holidays to the constitution of a statutory pension, sickness benefit and family allowances. You also remain exempt from VAT formalities if your turnover remains below 25,000 euros. In addition, if you are self-employed as a supplementary occupation, you can deduct certain expenses as business expenses.
As a starter, you can pay a provisional minimum contribution because your income is not yet known. As soon as your income is known, your contributions will be adjusted as a percentage of your annual income.
To conclude…
It’s clear that there shouldn't be a black and white divide between freelance and permanent position. In fine, it all depends on the mindset of the person. Being a freelancer won't suit to everyone, just like being an employee. Know yourself, and you will make the right choice!
Find all permanent and freelance opportunities for developers on bevopr 👇
