Are you sick of suffering from Monday morning blues? Then, become a contractor or a freelancer. According to research conducted in 2016 by McKinsey Global Institute (MGI), contractors and freelancers are the happiest workers around.
MGI’s survey found that 97% of contractors are happier with their working lives than their permanent employee counterparts.
So if you want to be a happy worker, become a contractor or freelancer. But, what is it about the freelance or contracting lifestyle that makes people so happy?
Through our 20 years’ experience of working with contractors and freelancers we have learned that contractors and freelancers enjoy been able to choose:
- who they work with
- when they work
- where they work, and
- what projects they work on
Freelancers and contractors are also able to earn substantially more than they did as employees.
Why isn’t everyone becoming a contractor or freelancer?
There is a certain element of risk with being a freelancer or a contractor. A client could decide that they no longer require your services and end your contract with little or no warning. Some people are not comfortable taking on this risk. However, a job for life no longer exists and permanent jobs come with their own level of risk as well.
What also makes some people wary of becoming self-employed, is having to get their head around the UK tax system. As a permanent employee, the taxes you owe are handled for you through PAYE. As somebody who is self-employed you have to take on a greater level of responsibility for working out and paying the taxes that are owed.
Ready to make the change to self-employment?
If you are looking for a happier work life and think becoming a contractor or a freelancer could hold the answer, then our suggestion is to take your time and think about the pros and cons before making the change.
It is advantageous to find out from other contractors or freelancers what the lifestyle is really like. If you do not know anyone who is a contractor or freelancer then try and connect to people through LinkedIn. There are a number of LinkedIn groups that are aimed specifically at contractors or freelancers. Here at Cogent Accountants we have our own LinkedIn group – The Contractor & Freelance Network. The aim of our group is to encourage contractors and freelancers to connect with each other and discuss issues that may be affecting them, in a supportive environment.
You’ve made the change but feel de-motivated
This can happen and often does. After making the decision to become a contractor or freelancer, adrenaline kicks in and spurs people on to find their first client. They then start the project and everything goes great for the first couple of months and then their enthusiasm weans.
The question is ‘is it possible to stop this feeling from occurring?’
We asked this question to a number of our clients and their response was ‘Yes it is possible’. They even came up with great tips, which we are sharing with you below:
- mix with members of the team
- learn from others
- do a job that you are proud of
- challenge yourself
- try new ways of doing something
If you are ready to make the switch to contracting or freelancing, give us a call on 020 8952 2234 and we can talk you through the process of setting up your own limited company.