Remote work can be either direct hire or contracting. During the pandemic, this became the norm. However, as things normalize this may or may not be the future of work. There are some benefits to remote both types of work. Let’s look at them now.
Most direct positions include health insurance and other benefits as part of your employment package. Typically, employers get a bit of a break for costs due to providing that perk to x number of employees. However, there are always out-of-pocket expenses even with the best of benefits. Deductibles, penalties, etc.
As a contract employee, you may or may not get health insurance as a perk. If you do not, then you will have to purchase it yourself. So that could be a detractor depending on the cost and coverage.
Time is another factor. When you work for someone else your time is their time. Breaks, time off, and vacations are all preplanned for you regardless of how you go about it. Some people are more productive in a structured environment where most things are planned for them. Others not so much.
Your time is your time when you are a contractor unless the organization you contract with requires you to keep certain hours. You can take a break whenever you want. You take vacations as you wish. You still need to perform to be paid, but there is a lot more flexibility there.
I can tell you that moving from contract to contract for work can be tiring. By virtue of being in a contract position, you can work steadily for three months, six months, or even a year. There may be gaps between contracts and you will need savings to keep afloat. I did that during the pandemic. The unknown can be scary too especially as we age.
There is information that supports remote jobs paying more than in-office ones, but I have noticed that that is not always the case. For example, in-office junior web developers earned more than their remote counterparts. The moral of this lesson is to do your homework before jumping in.
According to US Remote Workers Earn $8,500 More Than Office Staff (tech.co) remote workers earn substantially more than those who work a hybrid or totally in-office job. They analyzed over fifteen thousand jobs in thirty cities across the USA and found that the typical remote worker earns about $8,500 more. For example, PR managers earned approximately 30.16% more working remotely than their in-office counterparts. (As an aside, this figure is an estimate based on many factors and is dependent on where you live too.) There is something called location-based pay and job-based pay.
Location-based pay considers the range of wages paid in your specific locale. That entails the cost of living, which is not the same across the board. It also compensates the employee for their experience and expertise. This pay is based on what is fair according to their market conditions. Location-based pay should rise as the cost of living rises.
Job-based pay only pays according to the employee’s level of expertise and experience. It does not take into account the cost of living or a specific locale. Job-based pay can benefit employees who live in places where the cost of living is far less than in other locales.
I am being paid on a job-based level. I do not work remotely, but full-time in the office. However, the place I live has a hugely expensive cost of living and my wages do not keep pace with the economy here. It is increasingly difficult to get by. In order to prosper in today’s workplace you need to know our worth.
Businesses can save a lot of money by having their workers work remotely too. Organizations that select remote work for their staff will experience cost savings from office overhead and maintenance that they are able, in some instances, to push out in the way of increased salaries. Increased salaries are oftentimes enough for employees to be motivated to perform better too. Meetings can be conducted as effectively remotely as they can in person.
Next, I will provide some pros and cons of this type of work. Let’s get the bad over with before looking into the good.
Cons:
- The financial instability of hopping from contract to contract requires constant job searching on the employee’s behalf. Be vigilant.
- You will need to be very self-motivated in order to succeed.
Pros:
- You work for yourself and select the jobs you want to take.
- The money you earn may be more than on a day-to-day office job.
- Most of the time you can achieve a better work-life balance. That is good for your mental and physical health.
- You will most likely get exposure to things you may not have in one office. This can provide you with more personal growth and upskilling.
What will you do? Think about your strengths and weaknesses. Are you the type of person that is self-driven and motivated or do you need someone peering over your shoulder telling you what to do next? Be honest in your assessment because that is the only way you can truly succeed in the contracting world.
Regardless of your type of employment it never hurts to learn more. Upskilling is a fabulous way to earn more money and showcase your talents. Select something that dovetails nicely into whatever you already do and grow yourself from there.
References:
https://www.linkedin.com/pulse/license-upskill-two-sides-remote-autonomy-crossover
US Remote Workers Earn $8,500 More Than Office Staff (tech.co)
How Remote Workers Are Paid: Location-Based and Job-Based Pay – Glassdoor Blog