10 million people work as freelancers in Europe (source: Eurostat). While this status seems to appeal to many, with those who have taken the plunge extolling its benefits on social networks, it is important to be cautious. Just like salaried employment, freelancing has its share of disadvantages and is not for everyone.

So what status should you choose if you’re unsure? We’ve compared the major differences between working as a freelancer and a salaried employee to help you decide.

Do you prefer financial security or the freedom to choose your assignments?

The main reason for becoming a freelancer is freedom. Being your own boss offers the advantage of being able to choose the clients you want to work with and the assignments you want to carry out. However, it’s important to remember that this is a privilege that not all freelancers enjoy. Indeed, many of them, especially those just starting out, who do not have a well-developed network or considerable expertise, cannot afford to be ‘picky’ in the early days. If this is the case for you, be aware that the freedom to choose takes time and requires a number of sacrifices.

But is this freedom worth the price of financial insecurity? For some people, the answer is ‘no’. Having a regular, stable income is an essential need that freedom of choice cannot match. And for good reason: it provides a reassuring level of comfort, so that you don’t have to worry about the months ahead, and can proceed with personal projects such as buying a property, or cope with the exceptional expenses associated with the arrival of a child.

Changing jobs or joining a team?

Joining a company as a salaried employee means joining a team. Employees work together to achieve common goals defined by the manager and the management. When mutual relationships are good, you can count on the support of your colleagues, you celebrate victories and successes, and you share moments that promote and increase cohesion and a sense of belonging. This is not the case if you choose to become self-employed. Although there are communities of freelancers, they are a community rather than a team. The rest of the time, you move from client to client, assignment to assignment.

But perhaps that’s what drives you? Each new collaboration is the promise of a new project. As you take on more and more clients, you discover a new environment and new challenges. If you tend to get bored quickly, freelancing is an option you should seriously consider.

Do you want to work with a clearly defined framework or satisfy your need to show off your expertise by selling yourself?

Where do you start? Which direction should you take? What are your goals? How do you achieve them? Unlike freelancers, who start with a blank canvas, salaried employees have a defined framework in which they work. There’s always an N+1 to guide them and make sure they’re heading in the right direction and in the right way. If you find it hard to get going and organise yourself, working for a company is the best option for your personality.

Moreover, having a defined, imposed framework in which to work is a safeguard for those who tend to over-invest in their work to the detriment of their health and personal life. Being a salaried employee means having fixed working hours and the right to disconnect. The manager’s role is also to ensure that the workload is balanced. At least, in principle.

This is not the case if you choose to be an entrepreneur. When they set up their business, many self-employed people don’t count the hours and are obliged to work evenings and/or weekends to ensure they can deliver to their clients on time. As for those who visit their clients’ offices, the working hours obviously do not apply to them.

But some people who start their own business may be motivated by the challenge, the need to prove they can do it, to demonstrate their expertise. It’s a risk-taking exercise that certainly requires you to sell yourself, to put yourself out there and not be afraid of being turned down, but it’s one that fuels you with adrenalin, self-confidence and a chance to get out of your comfort zone.

Different remuneration arrangements for salaried employees and freelancers

As a salaried employee, your salary is paid based on your working hours and you don’t have to worry about calculating social security contributions. If you’re self-employed, it’s more complicated. You have to choose the fee structure that is most advantageous for you between the average daily rate (ADR) and the fixed price (invoicing the actual service provided rather than the hours worked). In each of these methods, it is essential to consider the following elements:

• Charges and costs (tax, social security contributions, insurance, etc.);

• Time spent on business development and communication.

Another difference is that for each month worked, salaried employees accrue paid holiday, which means they continue to receive their salary when they take a holiday. This is not the case for freelancers. Any time off must be anticipated and factored into your fee to enable you to go on holiday. As a result, it requires meticulous organisation and management skills.

Salaried employee vs freelancer: a comparison

Salaried employee:

• Advantages

Financial security Being part of a team Job stability Defined framework in which to work

• Disadvantages

Limited flexibility Imposed working conditions

Freelancer:

• Advantages

Freedom/being your own boss Changing assignments High level of remuneration

• Disadvantages

Loneliness Financial instability (initially) High level of risk

In conclusion, salaried employment and freelancing have advantages and disadvantages that will appeal to some and discourage others. Whatever the case, bear in mind that nothing is set in stone. Depending on the stage of your life and your experience, you may be tempted more by one than the other. The important thing is to know which status suits you best right now.