THE PROS & CONS OF EMPLOYMENT VS SELF EMPLOYED

So you want to quit your job and be self-employed? Or you probably think that working for others is much better than having own business because it is more secure.

But before you decide (or assume) which path to go for, do consider making a list of pros & cons of both options. Here are some of the pros & cons (may not be applicable for some countries, but generally they are the same) for your reference.

Can you think of ANY other pros & cons? Please share with me here!

EMPLOYMENT (The Pros):

<!--[if !supportLists]-->ü <!--[endif]-->Employer contributes to your EPF (In certain countries, this is a short form for the Employee Provident Fund. It’s an account where the employers’ contributes a certain percentage for its employees’ retirement age purposes).

<!--[if !supportLists]-->ü <!--[endif]-->Employers apply Insurance to cover your medical & personal accidents (Some company extends this benefit to spouse & children too).

<!--[if !supportLists]-->ü <!--[endif]-->Free/subsidized trainings for employees to upgrade their skills.

<!--[if !supportLists]-->ü <!--[endif]-->Claimable expenses (work related or medical).

<!--[if !supportLists]-->ü <!--[endif]-->Paid annual & work trips, accommodation, etc

<!--[if !supportLists]-->ü <!--[endif]-->Staff benefit card & packages (Some companies offer staff loyalty card for discounts & points collection each time the purchase service/products in any of their subsidiaries)

<!--[if !supportLists]-->ü <!--[endif]-->Benefits are offered, vary from designations & levels.

<!--[if !supportLists]-->ü <!--[endif]-->Salaries are paid on a fixed date, monthly basis.

<!--[if !supportLists]-->ü <!--[endif]-->Employers absorb more costs related to work (office rental, phone bills etc).

EMPLOYMENT (The Cons):

<!--[if !supportLists]-->ü <!--[endif]-->Employees enjoy less flexibility in terms of managing personal schedule as work is a priority. Leave application is subjected for superiors’ approval.

<!--[if !supportLists]-->ü <!--[endif]-->Employees are expected to be at work on time every day which means you need to leave really early to beat those traffic jams.

<!--[if !supportLists]-->ü <!--[endif]-->Your work is closely supervised, and performances are measured during appraisals. Risk of not being appraised appropriately.

<!--[if !supportLists]-->ü <!--[endif]-->Office politics, bosses playing favorites, back stabbing & lazy colleagues.

<!--[if !supportLists]-->ü  Remuneration rate/package may not always be fair.

<!--[if !supportLists]-->ü <!--[endif]-->Traffic jam, long hour at work. 

<!--[if !supportLists]-->ü <!--[endif]-->Some may not have career growth opportunity, become stagnant.

<!--[if !supportLists]-->ü <!--[endif]-->Less time spent with loved ones due to hectic work schedule.

SELF EMPLOYED (The Pros):

<!--[if !supportLists]-->ü <!--[endif]-->With dedication and commitment, possibility to reap the rewards of your own efforts in the long run.

<!--[if !supportLists]-->ü <!--[endif]-->Unlimited Independence and freedom; enjoy more control over what you do and choose when you want to do it.

<!--[if !supportLists]-->ü <!--[endif]-->You may opt to work full or part time.

<!--[if !supportLists]-->ü <!--[endif]-->You set your own hours so you’ll enjoy a better work/life balance.

<!--[if !supportLists]-->ü <!--[endif]-->Improved quality of life and increased job satisfaction

<!--[if !supportLists]-->ü <!--[endif]-->No more traffic jams, office politics, unfair appraisals.

SELF EMPLOYED (The Cons):

<!--[if !supportLists]-->ü <!--[endif]-->More stress as responsibility as you are responsible for losses as well as profits & your monthly income to sustain lifestyle/commitment.

<!--[if !supportLists]-->ü <!--[endif]-->You pay your own holidays and medical.

<!--[if !supportLists]-->ü <!--[endif]-->No one to manage you, keep you on track or provide motivation or moral support.

<!--[if !supportLists]-->ü <!--[endif]-->Less time spent with your family as business commitments may mean you work long hours in the initial part of business (unless you go auto pilot at the later part of the business).

<!--[if !supportLists]-->ü <!--[endif]-->Isolated from colleagues and customers. Most of the time you are on your own (unless you employ staffs to help you run the business or have the opportunity to mingle with your customers every day).

<!--[if !supportLists]-->ü <!--[endif]-->Responsibility to manage your own tax filing & submission with no company pension scheme (EPF).