7 things to consider when thinking about going freelance
If you are in a permanent position and considering going freelance read this…
I have been speaking with a number of people recently that are wanting to take the jump into freelance across various professions. I wanted to share 7 key points to consider based on my 14 years experience that may help make that decision and if it is the right option for you!
Have a think about the following...
1.?What is your appetite for risk?
If you are a risk averse person then this may not be the best option for you, there is a lot of risk involved in freelance work, whether that be loss of earnings/time off due to illness, injury or just the standard there are no positions available specifically within your field
Although this is unlikely as the market is booming I still have flashbacks to 2008 when there was too many candidates and not enough positions
2.?What rate would make it worthwhile?
Freelance can be extremely lucrative but have you actually worked out with an accountant how much you will come out with after tax in comparison to how much you currently make on a permanent basis
3.?Benefits that are important to you?
With a freelance position a lot of times you have your rate and that is it, whether that includes travel and any accommodation. With a permanent position there are things like value of employer healthcare, pension contributions, holiday pay, sick pay, insurance, car/ car allowance. With freelance if you are willing to work every day of the year this usually makes up the difference that you would lose but a lot of people go freelance for the flexibility.
4.?Is the flexibility what you expect it to be??
There are definitely massive benefits with freelance including work life balance, increased money and autonomy (job dependant) but there are also some candidates that work the same if not more hours due to needing to “earn” their rate within a company that are paying a premium for their service.
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5.?Notice period?
This point links with number 1, do you currently have a 1-3 months’ notice? I speak with some people that are currently in a permanent position, have a 3 month notice period and want to find something before they hand their notice in. This is unrealistic... in 14 years of working in recruitment I have placed maybe a 3 people that have had a months’ notice or more in a freelance position.
Clients that are open to freelance usually want planners, QSs and Engineers immediately which just doesn’t work when you have a notice period. This may mean that you have to hand your notice in before getting a position (Are you willing to do that?)
6.?IR35
Are the companies that you want to work for freelance offering your profession inside or outside? Navartis work with the large majority of the companies across the UK within Civil Engineering, Construction, Power, Utilities and most other sectors. We speak with and actively place with them on a daily basis. We would be able to confidently be able to tell you if their last placements for you profession have been outside or inside IR35, what rates they have been paid, how long their typical project duration is and how long they typically keep freelancers working for. I will happily give you this information if you are thinking about going freelance.
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7. Hidden costs.
A lot of clients that take on freelancers outside IR35 want you to provide your own laptop, software if you are a Planner, measuring equipment if you are an engineer, PPE, own LTD company insurances sometimes premises that they know you can work from. You need to think about those costs and either factor into your rate or accommodate for them before you start work.
With all this in mind freelance can be a very stable and lucrative way of working which offers autonomy and work-life balance, but worth thinking of these points before you make the jump.
Navartis have positions on a freelance & permanent basis which you can see here. if you are looking for your next move or just wanted a chat about the market feel free to give us a call on 0121 651 1666