Are you a freelancer who is curious about working online? Or a business owner interested in running your operations remotely?
With a long list of benefits for both companies and workers, it is no surprise that online work continues to grow in popularity. It's poised as the future of 'working', but it comes with its fair share of setbacks. This article dives into 14 crucial pros and cons that influence remote work, comprehensively examining them from both the freelancer and employer perspectives.
Why are these factors important? Because knowledge is power! In the rapidly evolving online workspace, cultivating mutually beneficial connections is key. Freelancers seek employers who trust their skills and offer valuable opportunities, fair compensation, as well as respectful treatment. Conversely, companies want to discover skilful and eager talent, that is reliable and trustworthy. By understanding each other's concerns, both parties can position themselves beneficially to secure excellent working relationships.
Contents
Remote Working Pros for Freelancers
1. Higher earning potential
Financial gain is a top motivator for over 80% of remote workers. We are attracted by the higher earning potential offered by many online jobs compared to traditional work. On average, online freelancers earn $28 per hour, according to the 2022 Payoneer Freelancer Income Report (an increase from $21 in 2020), whilst the average hourly rate for Africa individually is at $22 as shown in the table below.
These online rates are indeed motivating, especially considering that the global hourly rate for conventional industries averages below $10, which is roughly one-third of the remote work figures. However, it is important to keep in mind that for both online and traditional jobs, the figures provided are estimates, based on a limited sample of workers, not the entire population.
For any type of work, large disparities in the actual figures earned are common based on the hiring companies, their locations, and the job types. With hourly rates in traditional employment ranging from 20c in the poorest-paying countries like Afghanistan, to $13 in South Africa, $40 in America, and even $100 in the highest-paying countries like Monaco. Online work also sees similar variations in wages, but with a key distinction: freelancers often set their rates, rather than the companies. These rates are influenced by their skill level, global competition, and sometimes, their location (when it offers a competitive advantage). While this escapes rigid minimum wage structures, rates can still dip to as low as $1 per hour, which is still far from a livable wage in many places.
2. Greater career opportunities
Alongside the potential to earn more, another major benefit of working remotely is the exposure to a large number of opportunities. Freelancers gain access to a wider range of jobs and companies beyond their geographical limitations. Offering access to companies and projects across the globe, online work opens doors to roles that would otherwise be inaccessible to a big population of the world. It offers skilled, passionate, and talented individuals from anywhere the chance to collaborate with diverse teams, learn from industry leaders, and contribute to global initiatives.
Empowering people in the world at large to find jobs that truly align with their passions and skills. To chart their own career paths through a world of opportunities that traditional job markets can't offer.
3. Improved flexibility
Flexibility and remote work are almost synonymous. Increased flexibility is a trademark of the industry! Primarily because commute times (and associated costs) are reduced, and a great majority of remote jobs offer workers the freedom to set their schedules. Enabling work to be conducted effectively across different time zones by leveraging asynchronous communication.
Flexibility also boosts productivity. In fact, according to the popular freelance marketplace Upwork, most online workers tend to work fewer hours than their traditional counterparts. With 70% of freelancers working between 20 - 30 hours a week, whilst generally earning more, and with an improved work-life balance and mental health.
Remote Working Cons for Freelancers
1. Self-discipline is key
Remote work's flexibility offers a great work-life balance, but it also comes with increased responsibilities. Without a boss physically close by, remote workers need self-accountability to stay productive, avoid burnout from overwork, and address any IT issues such as internet connectivity.
This can be a substantial challenge, especially for those transitioning from more conventional jobs. It requires an entrepreneurial spirit: taking ownership of your career, managing your time, and proactively seeking solutions. Anyone hesitant about self-direction might find working online difficult.
The good news? Discipline is a learnable skill. By setting detailed schedules, having technology back-ups, minimising home distractions, and taking planned breaks, remote workers can cultivate healthy work environments that foster high productivity, with sufficient rest and recuperation.
2. Lack of job security and career advancement challenges
A great majority of online workers operate as freelancers (independent self-employed professionals). As such, their income and workloads tend to fluctuate from month to month. They are also often responsible for their own healthcare, retirement plans, taxes, career development, and other benefits.
This calls for both discipline and planning to manage finances effectively. Skilled budgeting allows freelancers to ride out lean months and capitalise on busy seasons by proactively seeking new clients and scheduling work strategically.
Even salaried remote workers can face challenges. Networking and visibility might be harder compared to office colleagues. This, alongside communication hurdles, cultural barriers, as well as reduced access to in-office training and development opportunities can potentially lead to missed promotion opportunities and increased bias against them. Negatively impacting their career advancement. Not to mention leaving them isolated, lonely, and left out of company culture.
3. High competition in entry-level jobs
The financial landscape for freelancers can be tricky. The best-paying positions typically require a significant investment towards a decent laptop and a secure internet service. As well as backups for both internet and power in the case of many developing countries.
Whilst entry-level and low-skill jobs are abundant, they face fierce competition, with employers often prioritising the lowest rates over skill, leading to wages as low as $1 per hour.
Furthermore, the gender pay gap persists even to remote work, as shown in the table below. While systemic issues undoubtedly play a role, it's also worth considering the impact of self-promotion and negotiation on income. Research suggests that as women, we tend to undervalue and undersell our skills compared to our male counterparts. This can be particularly impactful in remote settings, where self-promotion, setting competitive rates, and 'sticking to one's principles' are crucial for success.
What solutions are there? Leverage your existing knowledge and aim for specialised roles right from the start of your online career. Invest in developing your negotiation skills, boosting your confidence, and acquiring in-demand skills. This will empower you to charge based on your value and expertise, not just your location. Enabling you to compete effectively and command competitive rates.
Remote Working Pros for Businesses
1. Access to a wider talent pool
Businesses that offer remote opportunities gain access to a larger pool of talent, which enriches their teams with a diversity of cultures and perspectives. Fostering innovation and boosting their global brands.
Scalability is also streamlined. With most online workers being freelancers who are hired as needed, the hiring processes are usually faster and less complicated than those of full-time employees. Providing businesses with opportunities to increase or reduce their workforce quickly, according to the work they need.
2. Reduced costs
The hiring process of remote workers is generally faster and less complicated than that of in-person workers. This reduces the costs associated with the process itself, as businesses do not have to host interviewees, and back-to-back meetings can be rapidly conducted online.
Additionally, virtual teams do not require office spaces, reducing the expenses associated with equipment maintenance, utilities, and other overhead costs. The time and additional costs associated with long-distance business travel are also greatly reduced.
3. Increased productivity and employee retention
Remote teams generally witness increased productivity. With fewer office distractions, personalised workspaces and control over their work environment, remote workers have reported that they get to spend more time focused on results rather than presentation. Improving their output, and enhancing team collaboration and networking through effective use of technology for communication.
In addition, improved employee well-being due to flexibility and work-life balance leads to reduced turnover and a better work culture.
Remote Working Cons for Businesses
1. Data protection and compliance concerns
Operating businesses online demands robust security measures to safeguard sensitive information.
Businesses need to apply 'Data Security Best Practices' to mitigate security gaps. These include:
Data Discovery: Identifying and mapping sensitive data across their systems.
Access Control: Implementing strict access permissions for sensitive data.
Data Encryption: Encrypting data into code that can only be read by people with access.
Non-Disclosure Agreements (NDAs): Requiring NDAs from all employees, including remote workers.
Account Deactivation: Standardising processes for deactivating user accounts upon employment termination.
Additionally, organisations need to ensure they properly classify their remote workers for compliance and to avoid legal or tax implications. These typically have heavy fines or penalties.
Implementing good practices and addressing legal obligations avoids potential risks for companies. However, this might also influence them to limit remote positions to avoid legal complications and security risks.
2. Management challenges
While remote work boasts incredible benefits, managing virtual teams requires extra effort and a different approach to managing in-office teams. The key challenges to overcome include finding effective ways to communicate across time zones, fostering strong team spirit and collaboration despite the physical distance, and implementing effective performance management strategies.
What works? Leveraging asynchronous communication by using tech tools that allow team members to contribute and access information at their own pace. Designing creative virtual activities to encourage team building, partnership and transparency. As well as scheduling meetings strategically for maximum inclusivity across time zones.
3. Onboarding and training challenges
Communication barriers and cultural complexities can make virtual onboarding processes cumbersome. Businesses must be mindful of time zones and language barriers, by providing tools that foster communication and collaboration. Such as explainer videos and instruction manuals offered in multiple languages to ensure key onboarding activities are done correctly.
A nature of adaptivity must be encouraged among all employees, to embrace cultural diversity, and acknowledge different backgrounds and perspectives. Online activities that 'break the ice' can also be offered to build relationships, and promote inclusivity.
Other Factors to Consider
1. Environmental benefits
The impact of remote work extends beyond the individual to the environment. By embracing remote work models, we can significantly contribute to a greener planet through less commuting and energy use in offices. Studies have identified that by switching from working onsite to working from home, a single employee can reduce their work-related carbon footprint by up to 15%, due to the elimination of daily commutes. Eco-conscious individuals can further boost that number to 58% by employing strategies like driving electric vehicles, using renewable energy, and being mindful of energy usage at home.
The impact goes beyond individuals. Empty offices translate to less energy needed for lighting, heating, and cooling. Significantly lowering businesses' carbon footprints. Additionally, with fewer cars on the road, traffic congestion eases, improving air quality and reducing noise pollution in cities, ultimately leading to better public health.
2. Selecting the right job board website
Choosing the right online job board is crucial for both businesses seeking talent and freelancers looking for work. With hundreds of choices available, navigating the vast landscape can be daunting.
The most common challenges include:
Avoiding scams: Both businesses and freelancers face the risk of encountering fraudulent job postings or workers.
Avoiding time and money loss: Selecting the right platform takes time and effort, and some charge fees.
Establishing trust: Transparency and clear communication are essential for successful collaborations.
Some effective strategies for selecting job sites are:
Safety first: Choose platforms with established reputations, good security measures, and verification processes. Look for user reviews and ratings to get a sense of their trustworthiness. Clear communication and Non-Disclosure Agreements (NDAs) also further protect both workers and businesses.
Optimise time: Don't waste time on platforms flooded with irrelevant postings. Choose sites specialising in your industry or skillset for targeted searches.
Cost-effectiveness: Consider platform fees and subscription costs. Some offer free basic features, while others require paid memberships. Choose what best fits your budget and needs.
The real treasure, however, often lies in networking and referrals. These two elements are a dynamic couple that tend to lead to great jobs or talent acquisition: Excellent pay, benefits and work environments for employees, and for companies; passionate workers who are invested in the success of the businesses they work for. So, build strong networks! Connect with colleagues, industry professionals, and alumni.
Remember, the best job search platforms are those that prioritise your safety, value your time, and offer access to hidden gems through networking. Some great places to start are Upwork, Fiverr, LinkedIn, and Toptal.
Share your thoughts on remote work pros and cons...
Whether you're a seasoned online pro or a curious newcomer, this community is for you. Share your experiences, insights, and questions in the comments below!
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References
Payoneer: 2022 Global Freelancer Income Report
WorldData: Average Income Around the World
LinkedIn (Matt Wilkie): Advantages and Disadvantages of #Remote Working
Forbes: Navigating The Pros And Cons Of Hybrid And Remote Work
Asana: Asynchronous Communication Isn’t What You Think It Is
We Work Remotely: How to Be More Disciplined When Working From Home
TitanFile: 22 Data Security Best Practices in 2023 [Infographic]
Scientific American: Working Remotely Can More Than Halve an Office Employee’s Carbon Footprint
Candidate Impact on LinkedIn: "Optimize your job search: the art of choosing the right platforms”
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