Self-employment may seem less appealing when you take a closer look. Consider your cousin, who left his secure well-paying job at an accountancy firm to start his own business. He has the privilege of waking up whenever he desires, working from home in his pjs, and it seems he spends all his time on Facebook. However, his business keeps growing. It’s no surprise you’re feeling envious as he goes on extravagant vacations, buys a beautiful house, and openly plans to retire early.
Much like your cousin, in 2014, 27% of millennials opted to work for themselves, making that generation the highest in the self-employment sector. This growing focus on entrepreneurship has captured the attention of other generations as well. One can easily find blogs, podcasts, and books discussing self-employment.
Although entrepreneurship can be rewarding, it sure comes with its fair share of stress, largely because you are solely responsible for attracting clients and ensuring payments. On top of that, you lack the financial benefits a traditional employer could provide.
If you’re thinking of transitioning to self-employment, here are eight scenarios where it might not be as beneficial:
1. RETIREMENT
Sure, your cousin seems to be doing great, wisely saving for an early retirement. However, having a traditional job is not necessarily hindering your hopes to retire as most employers provide some form of retirement plans. A number of studies reveal that approximately 70% of employers will match some of your retirement contributions.
2. PAID LEAVE
Yes, your cousin takes astonishing vacations, but likely works a couple of hours every day before enjoying his holidays. Most American employers (over 75%) give their workers paid vacations and holidays. Additionally, you may be entitled to paid sick leave.
3. MEDICAL EVENTS
If faced with serious medical issues, you, the self-employed, could see your income disappear. However, if you’re employed by a larger company, the Family Medical Leave Act (FMLA) provides protection and allows up to 12 weeks off each year for serious medical situations.
4. INSURANCE
The cost of medical care is no joke, with insurance premiums seeing a substantial rise in the U.S over the past years. Being employed can save you hundreds of dollars a year in premiums alone.
5. DISCOUNTS
Being an employee means discounted or even free goods and services. Your cousin, the entrepreneur, doesn’t have this privilege.
6. TRAINING AND EDUCATION
Employers often cover the costs of necessary continuing education or offer tuition reimbursement packages. Over 50% of employers provide undergraduate tuition reimbursement.
7. EXTRA BENEFITS
Employers might compensate you for expenses necessary to carry out your job, such as a mobile phone for company calls or travel expenses for work trips.
8. CONVENIENCE BENEFITS
Some companies offer convenience benefits to increase job satisfaction and retain employees.
Working for yourself has its thrill, limitless earnings, and rewards; just remember it also brings stress and there’s no guaranteed financial success.
Job benefits contribute a massive part of what you earn. If your current job benefits aren’t satisfying, then looking elsewhere might be a good idea. Some work benefits include concierge services or catered lunches; however, these are not common.
What are some impressive benefits your employer provides? Is self-employment worth it, or would you prefer to benefit from what employers offer?
