Remote contractor: New digital employees?

When we were in school, we were taught that we had to study to be successful in an area of work 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 “remote contractor” concept comes from.

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

What is a remote contractor?

It’s a remote job with a work format with limited 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 temporarily or project-based. They often work for contracting firms. We find these types of professionals in the tech and marketing industry with specific skills related to a field. 

Of course, they usually work from home. The role usually implies a specific responsibility that doesn’t bind the company to duties other than 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. This type 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. 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. Being a remote job, we have certain freedoms 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 probably the most important point. Many professionals strongly benefit from an improvement in their income. We can usually charge more money than a traditional job in our country. Also, by having the freedom to work with several clients, we can earn more income.
• Location Independence. It doesn’t matter much where we are not located. We can accomplish our goals as long as we can have internet and work teams. 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 salary. We cannot access it unless we agree with the employer on a benefit (insurance, travel, vacation). This can lead to higher out-of-pocket costs for benefits or savings.
• Income Instability. Depending on the type of contract we sign, there can be a lot of 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 compensate workers for dismissal. 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 physical separation between work and home, contractors may find it challenging to set 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 construction, architecture, or cleaning. 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 jobs include Web Design and Development, App Development, Software Engineering, and Frontend/Backend Development.
• Graphic Design. Brand Design, Illustration, Video Editing, UI/UX Design, Animation and Renderization, 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, Customer Support.
• IT Support and Network Services. Technical Support, Cybersecurity Services, Cloud Services.
• Online Teaching and Tutoring. Language Tutoring, Academic Tutoring, Course Creation.

Thanks to the number of new roles that can be managed digitally, more and more professionals are interested in the remote contracting format. 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, the freelancer does 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 a person who has an employment and legal relationship with a company. He/she fulfills objectives according to a hierarchical structure. They receive a fixed salary every month and several benefits.
• Remote contractor. It is a middle ground between the two. It is not a permanent employee but is not autonomous like a freelancer. This is a remote work model, where a contract is signed for a specific function. It might involve a particular working hour and a salary (if the agreement stipulates that). Usually, the contractor pays his/her taxes and receives a fixed financial compensation.

At RPB Marketing, we believe that it doesn’t matter much which format you work in. They are all good, depending on the function you fulfill. As long as we meet our objectives and feel comfortable with our working conditions, all three formats work. We indeed see more and more freelancers and, of course, more remote contractors. The digital market is probably heading in that direction in the future.