FULL TIME VS FREELANCE

Words by Rachel Zammit Cutajar

The thought of not having a boss is appealing to everyone. Working at your own pace, on your own schedule seems like an absolute joy. Even more so if you can do it remotely. Isn’t working from a yacht, chasing the sunshine without a boss breathing down your neck the ultimate dream? Deciding to quit the rat race and start going it on your own is a huge decision, and one which should not be taken lightly.

The global pandemic has given everyone in the working world the time to think about what they’ve been doing; a break from the crack-of-dawn wake-up calls, commuting to work, slogging away at your desk for eight hours, only to return home to start working on your own personal responsibilities or passion projects. Though nobody wants to go back to pandemic lockdowns, it’s given everyone a little food for thought. Is this full-time gig really for me? Can I make it as a freelancer? And the ultimate question: can I achieve a better work-life balance working for myself? With global freelance platforms like Upwork, Fiverr and Toptal recording significant growth, the jump may be tempting.

While making the transition can be scary at first, it can be immensely rewarding. Nonetheless, life in the freelance lane may turn out to be more stressful than you bargained for. Some of your biggest opportunities can turn out to be your biggest drawbacks. Understanding what to expect can be the difference between success and having to return to the rat race.

Since the pandemic, Heidi Lofthus, Project Director at HR Connect, an association of senior HR decision-makers from 26 companies within the iGaming industry, has seen a change in approach and employment types within the iGaming HR market, though companies have not gone as far as favouring freelancers. Having taken the plunge into the freelance and contractor world herself after leaving her full-time job as employed during Covid times, she was curious to understand the outcome and effects of the pandemic, how work relations change and how this can be supported.

“The changes in today’s world have caused a shift within the industry. The Corona virus and vaccine requirements, as well as travel restrictions, have made it more difficult for companies to enforce mandatory office hours. Malta’s greylisting, difficulties in the Maltese economy and delays in government administration with regards to work permits means many employees have decided to go back to their country of origin or moved on elsewhere. Trends are now on the rise for organisations to allow completely remote work with employees signed on as contractors. This means that although they are fully employed by their own private setup in a country where the company does not have an employment unit, they’re still seen as a long term investment and asset for the company, rather than a project-based freelancer.

Heidi is one of those people seeing this as an opportunity; she’s employed as a contractor with igamingNEXT and HR Connect while based in Malta, with herself living in Sweden. This type of contract allows her to be fully part of the company and the team as if she were employed, only, the legal setup type is that of a private company: the same legal setup of a freelancer. IgamingNEXT has a remote first mentality, and makes sure the full team meets for company gatherings whenever opportunities present themselves. Heidi is an accredited coach - a job that she does on a freelance basis.

Freelance work allows more freedom and flexibility. You can choose your own hours (working as much or as little as your budget allows), choose your own schedule (goodbye nine to five), and choose your own clients (hallelujah to not working with difficult clients more than one time). However, it does come with some drawbacks.

“When you’re employed, you can concentrate 100% of your focus on the job you were employed to do. The employer is expecting an initial learning curve with less output, and is expected to train you where and when needed. When you’re working freelance and taking on a project, you’re expected to be fully trained and deliver from day one; that is what you’re being hired for. Seamless delivery without extra hassle. Another thing that’s important to understand is the time and/or money you as a freelancer will need to spend on handling your personal company admin, accounting, salary payments and marketing, and this might require skills and time you do not have. You’ll also need to pay extra for third party services. As employed, this is embedded in the package, together with paid holidays and sick leave.

At a glance, a freelancer may make more money when compared to a full-time employee’s hourly rate when seen as a gross payment. However, this rate does not reflect all the work that goes into getting the job done. Tax, contributions and national insurance need to be taken into account. Training and preparation for the actual delivery is not a guarantee being paid for. These things are required to be in place from the first minute of work as a freelancer. Marketing, billing and accountancy are all part and parcel of the job and, though they take up time, are not billable hours.

“Again, there are no sick days or vacation time. If you catch a cold, you are sometimes able to reschedule appointments, but if you contract something that has a longer prognosis, then this might be difficult. This needs to be reflected in the hourly rate.”

There is ample logic for the growth of the freelance market. Freelancers offer a cost and expertise that is an efficient alternative to full-time employees, allowing them to “buy” as much – or as little – expertise as they require on demand. When an organisation recruits a new worker, the new employee may require training and a period of adjustment before they become a productive member of the workforce. When employing freelancers, employers can expect expert productivity from the minute of recruitment, and though this is at a much higher rate, it may be profitable. Hiring a full-time writer or photographer might be seen as too expensive, as everyone today fancies themselves to be a writer or a photographer. However, the benefits of immaculately written copy or that high-definition image on your social media page can be worth the cost when a company can buy as much of the service as is required. Though it might seem more expensive on an hourly rate, it is more cost-effective.

When making the jump to a freelance career, character suitability should be high on the list of what makes you take the plunge. Instability is not a desirable trait in your job description, however a person that does well with variety may find themselves in a better situation to take on a freelance position. “Depending on where you are in your life and what skills you have at your disposal should determine whether this is the right life choice. If you have a supportive environment – family, friends or a large savings account – this may be the time to throw caution to the wind. If you are anxious about where your next pay cheque is coming from, then it’s perhaps best to stick to full-time employment.”

Heidi Lofthus

Project Director at HR Connect

Rachel Zammit Cutajar

Freelance Writer