Remote contractor | New digital employees?

When we were in school, we were taught that we had to study to be successful in the field of our choice. We were taught that we would go to an office and work with other professionals. This is a myth of contemporary society. Today, it doesn’t work that way anymore. And that is where the concept of the “remote contractor” originates.

With the massification of the internet and remote work, a new (and popular) hiring format has emerged: the remote contractor. Although this job is highly insecure and unstable, it also offers many advantages that traditional jobs do not. We explain it in detail in this article.

What is a remote contractor?

It’s a remote job with a limited work format and terms and conditions. Is it a traditional employee? No. Is it a freelancer? No. Neither. It is a middle ground.

A remote contractor works for a company or client on a temporary or project-based basis. They often work for contracting firms. We find these types of professionals in the tech and marketing industries, possessing specific skills related to a particular field. 

Of course, they usually work from home. The role typically implies a specific responsibility that doesn’t bind the company to duties beyond paying the worker a salary.

Their main profile is based on:

• A self-employed worker who is not considered a traditional full-time employee.
• A remote worker (from any city or country in the world).
• A worker who receives a payment without regular benefits.

Advantages and disadvantages of a remote contractor

The main advantages are focused on the hiring format. These types of professionals can manage their job profiles. However, you will lack the necessary labor and legal preparations. Among them, we find:

Advantages

• Flexibility. This type of contract has specific hourly requirements. However, you can choose the contract format that best suits you. Or, you can work by goals.
• Variety of work. You don’t depend on one job. You are not obliged to work with a single client. You can choose the type of work, its conditions, and the amount of work you can handle.
• Independence. As a remote job, we have some flexibility in how we work. We have no dress codes and no face-to-face meetings (in most cases). Nor do we have as rigorous supervision as in a regular job format with clients and bosses. 
• Income. It is the most crucial point. Many professionals strongly benefit from increased income. We can usually charge more than we would for a traditional job in our country. Additionally, having the freedom to work with multiple clients allows us to earn a higher income.
• Location independence. It doesn’t matter much where we are not located. We can accomplish our goals as long as we have internet access and a well-functioning work team. This opens up a wider range of opportunities and can benefit those who want to live in lower-cost areas or travel frequently.

Disadvantages

• Lack of benefits. Simply put, we will have no benefits, only a salary. We cannot access it unless we agree with the employer on a specific benefit (such as insurance, travel, or vacation). This can result in higher out-of-pocket costs for benefits or reduced savings.
• Income instability. Depending on the type of contract we sign, there can be considerable instability. If we work by objectives and projects, we can also have very profitable and arid months. 
• Isolation. If you like to work in a team and feel human warmth, this is not for you. You will work remotely from home. Often, you will never meet your team members in person, and there is a significant lack of in-person interaction with colleagues, which can lead to feelings of isolation.
• No job security. They are often fraught with insecurity and instability. This type of contract does not provide compensation for workers who are dismissed. Also, when you are hired by foreign countries (usually the case), their labor laws do not apply to you.
• Administrative burden. The remote contractor takes care of its taxes, health insurance, and social benefits. No human resources, finance, or any other department can help you manage your tax payments.
• Work-life boundaries. Without precise office hours or a clear separation between work and home, contractors may struggle to establish boundaries, leading to overwork or burnout.

Services delivered by a remote contractor

Commonly, the services of a remote contractor are associated with technology, advertising, design, or creative arts. Sometimes, we also find contractors in the construction, architecture, or cleaning industries. But, in this article, we will stick to the trades more related to marketing (because it is our area of interest):

• Web and software development. These are jobs that encompass web design and development, app development, software engineering, and frontend/backend development.
• Graphic design. Brand design, illustration, video editing, UI/UX Design, animation and rendering, and layout design.
• Content creation and writing. Copywriting, blog and article writing, SEO writing, Social media content, and technical writing.
• Digital marketing. SEO, media buying, email marketing, media management.
• Virtual assistance and administrative support. Administrative support, data entry, project management, and customer support.
• IT support and network services. Technical support, cybersecurity services, and cloud services.
• Online teaching and tutoring. Language tutoring, academic tutoring, and course creation.

As the number of roles that can be managed digitally increases, more professionals are becoming interested in remote contracting. Of course, with the international popularization of remote contractors in companies, this is becoming increasingly normal.

Freelancer, full-time employee, and contractor. Same thing?

No, they are not the same. There are three different contracting formats. In summary, we explain each of them and their differences:

• Freelancer. It is a contracting model for projects and orders. Typically, freelancers do not have a fixed relationship with a company. It is a specialist, usually related to production, who works independently. They do not receive a salary but are compensated according to price agreements, invoices, and quotes.
• Full-time employee. This is the opposite. It is the traditional hiring model. A full-time employee is an individual who has a formal employment and legal relationship with a company. He/she fulfills objectives according to a hierarchical structure. They receive a fixed monthly salary and various benefits.
• Remote contractor. It is a middle ground between the two. It is not a permanent employee, but it is not autonomous like a freelancer. This is a remote work model in which a contract is signed for a specific function. It may involve a particular working hour and a salary (if the agreement stipulates this). Usually, the contractor pays his/her taxes and receives a fixed financial compensation.

I believe that it doesn’t matter much which format you work in. These job formats are all good, depending on the function you fulfill. As long as we meet our objectives and are comfortable with our working conditions, all three formats are suitable. We indeed see more and more freelancers, and, of course, an increasing number of remote contractors. The digital market is likely to head in that direction in the future.