Employment Vs. Self-Employment: Head To Head

Now that you’ve graduated, you’ll be diving into the working world and making a living for yourself. Some graduates choose to go down the road of traditional employment while others go into self-employment.

Whatever you decide to do, weigh up the pros and cons for each before you make an informed decision.

Employment: the pros

1. Pay

You get a fixed monthly salary.

2. Tax

All your tax arrangements are completed by HR.

3. Holidays

You get a certain number of paid holidays.

4. Illness

Sick pay is available.

5. Other possible benefits

Gym membership, health insurance, vouchers etc.

6. Further training

Opportunity to go on courses and do further training at no expense to yourself.

7. Social element

In the office, you have colleagues to talk to and bounce ideas off.

… and the cons

1. Commute

The daily commute to the office means getting up in advance to beat the traffic.

2. Holidays

Lack of flexibility regarding how many holidays you get.

3. Same thing day in, day out

The feeling of being stuck in a rigid routine.

4. Having to answer to someone else

Giving your manger updates on what you’re working on, how long it’s taking you etc.

5. Restricted schedule

Your schedule may not be fixed. For example, you may have to work some evenings and weekends.

6. You’re not in control of your own destiny

You’re not able to control if and when you progress in the company.

7. You can’t choose or refuse any task that is assigned to you

Even if you find it tedious, if it’s within the scope of your work then you are obliged to do it.

Self-employment: the pros

1. No need to commute

Which means you don’t have to get up so early.

2. Tax benefits

You get taxed once a year opposed to once a month.

3. The freedom to fit work around your personal life

You can be more flexible when it comes to making personal plans.

4. Setting your own working hours

You can work whatever time is best for you; it doesn’t have to be a traditional 9-5.

5. Greater sense of self-satisfaction

You’re working for yourself so naturally whatever you produce will mean more to you.

6. The flexibility

Being able to nip out for a doctor’s appointment, pick up your groceries or a haircut during the day etc.

7. You make all the decisions

This includes choosing the people you work with and the type of work you take on.

… and the cons

1. Possibility of irregular income

Some months you may get less income than others.

2. No paid holidays

If you go for a two-week holiday, you won’t get any income for those two weeks.

3. No paid sick leave

If you get ill, there’s no sick pay to cover the days you’re off.

4. It can be lonely

If you work alone you can become isolated and won’t have anyone to bounce ideas off.

5. Sorting out tax and finances

Arranging your own book-keeping including accounting and tax.

6. It’s a lot of responsibility

More stress on your shoulders as you are responsible for all success and failure.

7. Start-up costs

There are likely to be some start-up costs so you may need some money to get started.

Being employed or self-employed both have their pros and cons. If you have a business idea but also have people offering you jobs, then you need to be true to yourself. No one can decide which route is going to be best for you; only you will know what will give you true fulfilment.

Haleema Khokhar also known as Kimi (a college nickname that stayed) is a journalism graduate working in the world of marketing and freelance writing. She loves animals, dance and a strong cup of tea. Check out her website and Twitter at @MyImpression_ you can also check out her personal Twitter at @KimiKhokhar 

Inspiring Interns is a graduate recruitment agency which specialises in sourcing candidates for marketing internship roles and giving out graduate careers advice. To browse graduate jobs and graduate jobs Manchester, visit their website.