Freelancer vs. Permanent Employment – What Suits Me?

If you're navigating the working world as a software developer, you may face an important decision: Should I work as a freelancer or take permanent employment?

Both options offer different advantages and disadvantages that strongly depend on what suits you personally best. Here's an overview that can help you with your decision.

Permanent Employment: Stability and Structure

In permanent employment, you benefit from the security of a fixed income and regulated working hours. You often receive additional social benefits such as health insurance and paid vacation. Furthermore, permanent employment offers a clear structure and usually defined career paths, which helps you plan your professional development. Especially in times of crisis, permanent employment can be an attractive option as it offers financial security.

Advantages of Permanent Employment:

• Stability: A permanent job offers you a regular income and social security.
• Social Benefits: You get access to benefits like health insurance and paid vacation.
• Teamwork: You work in a fixed team, have regulated working hours and clear promotion opportunities.
• Less Responsibility: Your employer handles the administration of taxes and insurance for you.

Disadvantages of Permanent Employment:

• Less Flexibility: Fixed working hours and limited choice of workplace can be perceived as restrictive.
• Less Variety: You mainly work on projects specified by the company, which leads to less diversity.

Freelancer: Freedom and Self-Determination

If you like to work independently, freelancing could be an attractive option for you. Freelancers have the freedom to determine their own working hours and locations. They often work on different projects for various companies, which offers greater variety and the opportunity to try out new areas. Earnings are also often higher, as freelancers are usually paid by the hour or by project.

Advantages of Freelancing:

• Flexibility: You can determine your working time and workplace yourself.
• Variety: You work on different projects that give you the opportunity to learn new skills and build a broad portfolio.
• Earning Potential: If you have specialized skills, you can usually charge higher hourly rates.

Disadvantages of Freelancing:

• Uncertainty: There's no guarantee of regular income. You must be able to build up reserves and deal with periods without projects.
• Personal Responsibility: You're responsible for your taxes, insurance, and acquisition of new projects yourself, which brings additional effort.
• Social Isolation: You often work alone and must take care of networking and professional exchange yourself, e.g., through co-working spaces or regular meetings with other freelancers.

Let's Go Deeper

1. Career Development

• Permanent Employment: In a company, you may have access to internal training and advancement opportunities. Companies often offer training that prepares you for the next career step. You also benefit from a clear career path with regular evaluations, salary increases, and promotion opportunities.
• Freelancer: You're responsible for your own career development. This gives you freedom, but also the responsibility to independently seek further education. Networking and building a portfolio play a bigger role, and there are fewer fixed "promotions." However, you can secure higher fees faster through specialized skills, which is also necessary because nobody adjusts your salary to inflation, for example, if you don't demand it yourself.

2. Work-Life Balance

• Permanent Employment: A regulated work routine often offers better separation between work and leisure. Working hours are usually clearly defined, and after work and on weekends you have time for family and hobbies.
• Freelancing: You have the freedom to determine your working hours yourself, which can provide better work-life balance – but only if you manage to manage your time well. The danger of working overtime or being constantly available is greater.

3. Financial Aspects and Self-Employment

• Permanent Employment: Here you have a regular salary that allows you to make long-term plans more easily, such as buying a house or family planning. Bonus programs and other incentives may be added, and your tax matters are handled by the company.
• Freelancing: Freelancers often have the chance to earn significantly more, especially if they specialize in sought-after niches. However, you must take care of tax payments, insurance, and retirement planning yourself. This requires a high degree of self-organization and financial planning.

4. Projects and Work Environment

• Permanent Employment: You may work on long-term projects and have a fixed relationship with your team and supervisors. This can mean that you bear more responsibility and have a stronger connection to the projects you oversee.
• Freelancing: Here you often work on shorter, varied projects for different clients. You must constantly adapt to new tasks, which can be exciting but also exhausting. However, the constant change of projects and clients offers a lot of variety and learning potential.

5. Flexibility in Choosing Projects

• Freelancing: As a freelancer, you can often decide which projects you take on, giving you more freedom to work on tasks that really interest you and advance you.
• Permanent Employment: You work on the projects the company specifies, which may commit you to specific tasks or areas.

6. Market Developments and Crisis Security

• Permanent Employment: Companies often offer more stability in economic crises or uncertain times. There are fixed contracts and protection against dismissal that give you a certain security.
• Freelancing: As a freelancer, you can react quickly to market changes since you're not tied to a company. But in economically difficult times, it can be more laborious to find new contracts, as many companies cut their budgets.

7. Working in a Team vs. Independently

• Permanent Employment: You usually work in a team and have regular meetings and exchange opportunities. This helps to discuss projects in the team and solve problems together.
• Freelancing: You often work alone and are responsible for solving problems yourself. Although there's the possibility of working in temporary teams, regular team cohesion is often lacking. However, you have the freedom to build your own network and work more flexibly.

Which Option Suits You?

The choice between freelancer and permanent employment strongly depends on your personal preferences and your current life situation. If you prefer stability and clear structures, permanent employment is probably the better choice for you. However, if you value flexibility and variety and are willing to take on additional responsibility for your professional future, freelancing could be the right option.

Examples for Decision Making:

• If you have a family and seek financial security, permanent employment might make more sense.
• If you like working on various projects and want to design your work routine very flexibly, freelancing might suit you better.

There are also hybrid models where you're employed part-time and work as a freelancer on the side. This combination can offer you both stability and flexibility.

Regardless of which path you choose, continuous education is a crucial factor for being successful in the IT industry.

This is where DevCraft Academy comes into play. It supports developers not only in advancing their technical skills but also in achieving higher fees and positions faster in their profession, whether employed or freelance, through specialized skills.

With its internationally recognized ISO 21001 certification from TÜV Austria, the academy stands for the highest quality and offers exactly the education and mentoring you need to advance in your career.

You don't have to struggle through the challenges of the working world alone – we're here for you!

It's up to you!