Given the current economic landscape and competitive job market, you may be considering picking up another gig to boost your income. While both side hustles and contract work offer extra earnings, understanding the distinctions can help you decide which work arrangement is right for you and your goals.
In this article, our experts at Doherty Staffing Solutions (Doherty) share more about side hustles and contract work by addressing common questions you may have and sharing the pros and cons of both so that you can make informed career decisions.
What is the gig economy?
The “gig economy” is defined as the flexible freelance work environment that began booming alongside growing technology developments in the early 2000s. The gig economy has gained major popularity within the last decade – according to a McKinsey report, 162 million individuals in the United States and Europe have engaged in some kind of additional work outside of their full-time jobs. This figure amounts to between 20% and 30% of the working-age population! The gig economy ebbs and flows based on economic and labor market trends, but is here to stay.
How do side hustles fit into the gig economy?
Although the gig economy itself isn’t new, in recent years, side hustles have gained major popularity once again. Statistics from a recent poll revealed that over 70% of Americans are searching for secondary income sources to meet their financial goals in a turbulent economy. Of those polled, 39% run a side business or do freelance work, 32% have second jobs, and 24% rely solely on investments. Whether the goal is to pay the bills, accomplish life milestones (such as homeownership or starting a family), or simply have some extra disposable income, side hustles offer a variety of benefits.
What are side hustles, and how do side hustles offer flexibility and freedom?
Side hustles, often referred to as gig work, are typically part-time jobs that people work in addition to their primary full-time job. These can range from freelance projects to driving for a ride-sharing service or selling handmade crafts online. The primary appeal of side hustles lies in their flexibility and freedom. Workers can choose when and how much they want to work, allowing them to balance their main job and personal life effectively. Additionally, many side hustles are easily accessible, require little to no experience (depending on the gig), and can be fairly lucrative.
However, the flexibility of side hustles brings its own set of challenges. The income can be unpredictable, and there is often a lack of job security and benefits like health insurance or retirement plans. This makes side hustles a source of supplementary income rather than a stable, long-term solution.
What is contract work, and what makes contract work a more stable employment option?
Contract work involves a more formal agreement between workers and employers to complete a specific project or task. These contracts can last from a few months to several years and often include specific terms regarding the scope of work, payment, and duration. Contract workers typically have a more predictable schedule and income, which can offer greater stability compared to side hustles. If you are completing contract work through a staffing firm, you may even be eligible for the agency’s benefits or perks, such as health plans, pay cards, referral bonuses, free employment resources, and more.
Despite the structured nature of contract work, it is not without its drawbacks. Contract workers might face periods of unemployment between contracts and often do not receive the same benefits as full-time employees. Additionally, the rigid structure may limit the worker’s flexibility in taking on other opportunities or maintaining personal commitments that could be better navigated through a more informal side hustle.
How do the financial benefits of side hustles compare to contract work?
When it comes to financial implications, both side hustles and contract work offer different advantages and disadvantages. Side hustles can potentially provide high earnings if the worker is highly skilled and in demand. However, the lack of benefits such as health insurance, paid leave, and retirement plans can be a significant downside.
Contract work, while typically offering a more stable income, may include some benefits depending on the agreement. However, these benefits are often less comprehensive than those offered to full-time employees. It’s crucial for individuals to consider both the immediate earnings and the long-term financial implications when choosing between these work arrangements.
Which option offers better work-life balance: side hustles or contract work?
Work-life balance is a critical factor for many individuals when choosing between side hustles and contract work. Side hustles offer greater flexibility, allowing workers to work at their own pace and fit their job around personal commitments. This can lead to a better work-life balance, especially for those with varying schedules or family responsibilities.
Contract work, while more structured, can also offer a good work-life balance if the terms of the contract are favorable. However, the fixed hours and project deadlines may sometimes lead to longer working hours, impacting personal time. Ultimately, the better option depends on an individual’s personal and professional priorities.
How can I choose between a side hustle and contract work to meet my goals?
Choosing between side hustles and contract work depends largely on individual career aspirations, financial needs, and lifestyle preferences. For those seeking flexibility and the opportunity to explore different fields, side hustles can be an excellent choice. They allow for personal growth and the chance to develop a diverse skill set in areas of interest.
On the other hand, contract work offers stability and the opportunity to build long-term professional relationships. It can also be a stepping stone to full-time employment within an organization with temp-to-hire/contract-to-hire work arrangements. Assessing your career objectives and weighing the pros and cons of each work arrangement can help you make an informed decision that aligns with your long-term goals.
Here is a quick side-by-side comparison to help you decide whether a side hustle or contract work is the better option for you:
Where can I get help finding a contract role?
Whether you’re exploring contract roles as a career pivot or seeking greater stability than a typical side hustle can provide, having the right partner in your corner makes all the difference. At Doherty, we specialize in matching professionals with rewarding contract opportunities that align with their skills, schedule, and goals.
From short-term projects to long-term arrangements, our team is here to help you find flexible work that fits your lifestyle. Get connected with us today to explore current contract openings and take the next step in your career journey with confidence!
