Comparing Employment

CHAPTER 6, LESSON 4

NAME DATE
Serena Benny Mathew 05/07/25

DIRECTIONS
Read the article and chart below, then use the information to write a compare-and-contrast essay.

What Is Employment? yourself, independent from an external

What you choose to do for a living is a major company. Being self-employed can come
decision. While many people use their skills in the form of owning a business, being a
and talents as employees of specific com- freelancer, or working as an independent
panies, others have a unique dream and contractor for a different company.
go into business for themselves. There isn’t Ultimately, the main difference be-
necessarily a right answer between these tween these definitions is who you report
two options (that depends on you), but to (for example, a boss versus yourself) and
there are major differences between these where your income comes from (do you get
paths you should know about. a paycheck, or do you generate your own
Before we dive into each option, let’s income?). But there are many other differ-
make sure we’re on the same page about ences that might help you make a decision
the differences between them. about which employment option you want
If you’re employed, you’re a worker to pursue.
who willingly agrees to give your time, en- It’s important to note that all jobs are
ergy, and talent to a specific company or different depending on what you’re hired
person in exchange for money in the form to do. The following examples are general
of a paycheck. descriptions of employment and won’t fit
Alternatively, if you’re self-employed, every unique job situation:
it means you’re someone who works for

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 Comparing Employment
CHAPTER 6, LESSON 4

JOB FEATURES SELF-EMPLOYED EMPLOYED

When you’re self-employed, you When you’re employed, you have

decide which direction to take your limited freedom to choose what you
business. While you might have do. Often you’re hired for a specific
Independence
stakeholders you need to keep role and to complete specific tasks.
updated, you decide who they are Any work you do outside of those
and how much input they have. tasks usually needs to be approved.

Typically, you’ll have limited

decision-making power. Depending
on your role, you could make day-
Decision- You make most, if not all, the to-day decisions, or you might be
Making decisions in your business. responsible for decisions that affect
a team or line of business. But the
owners and/or board of directors
make the decisions for the company.

Employees don’t usually carry

much risk. You’re responsible for
the mistakes you make. But the risk
of bad business decisions doesn’t
Risk is often 100% on your shoul-
necessarily fall on you. In some cases,
ders. Since you have the freedom to
the bad decisions could lead to less
decide what direction to take your
Risk profits or cause layoffs, which could
business, you also have to accept
affect you. But in many situations, it
responsibility for the outcomes of
doesn’t impact you too much. For
your decisions.
example, if there’s a lawsuit against
the company, you won’t deal with
any of the consequences (unless
you’re personally involved).

When you’re self-employed, you can

Many jobs require you to work
choose your own working hours. Your
a specific schedule for a specific
schedule depends on the needs of
Working number of hours each week. Your
your business, but you get to set what
Hours wages are based on the number of
those hours are. Usually, this means
hours you work, and you’re required
self-employed people end up working
to fulfill that commitment.
longer hours than many employees.

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 Comparing Employment
CHAPTER 6, LESSON 4

JOB FEATURES SELF-EMPLOYED EMPLOYED

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Depending on what kind of business

you own, you can choose to work
Though many jobs are remote, a
from wherever you want. If your
majority of employee positions
business requires a specific location,
Working require you to work in a specific
like a construction site if you’re an
Location office, facility, or jobsite. Your
independent home builder, you’ll
employer decides if work can be
obviously have to work there. But
done off-site.
many times you can choose the
location you work from.

You’re responsible for all the costs of Typically, your employer covers
running your business. These costs the costs for anything you need
must be accounted for before you to do your job. So if you need a
Costs and subtract your personal income from computer or a phone to do your job,
Expenses your business revenue. If you’re a the company chooses and pays for
photographer and your camera those resources. They don’t belong
breaks, you cover the cost of repairing to you, though—they are the compa-
or replacing it. ny’s property.

Your employer is responsible for

deducting taxes from your wages
You’re responsible for keeping track
based on information you provide.
Taxes of and correctly paying specific
You’re still responsible for filing your
business and personal taxes.
federal and state income taxes and
paying any additional tax due.

Most full-time jobs offer some sort

of insurance coverage, including
health insurance, life insurance,
If you decide to purchase any and disability insurance. But not
insurance for yourself, your all employers do. If they do offer
Insurance equipment, or any employees, you benefits like these, the employer
are responsible for choosing the chooses the plan(s) and gives you
plan and paying for it. all the information. If you choose to
participate in the plan, you’ll often
pay for part of the insurance plan
while your employer covers the rest.

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 Comparing Employment
CHAPTER 6, LESSON 4

JOB FEATURES SELF-EMPLOYED EMPLOYED

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Usually, your employer will give you

a certain amount of PTO for vaca-
You decide when and how much
tions and holidays as part of your
paid time off (PTO) you can take
employment contract. Typically, the
for things like vacation or certain
longer you work for a company, the
holidays. But you’ll also have to
Paid Time Off more PTO you earn. You’ll have to
figure out how to keep your business
get approval from your leader about
running. Until you have employees
when to take your PTO. And if you
who can do that for you, you’ll likely
use all your PTO, you either won’t
have to work during your vacation.
be able to take any more time off, or
you’ll have to take unpaid time off.

Like with PTO, most companies

offer a specific amount of sick time
per year. You can use this time if
Like with PTO, taking sick time away
you’re too sick to go to work—or for
Sick Time from your business could bring it to
doctor’s appointments—and still get
a halt.
paid. Once you’ve used your sick
time, though, any extra sick days
may be unpaid.

When you’re hired for a position,

Your wages are directly tied to the
you agree with your employer on a
success of your business. The more
specific wage. Sometimes this is a set
revenue you earn and the more you
Wages amount of dollars per hour, an annual
save on costs, the more money you
salary, or a commission based on
get to take home. There’s no limit on
sales. Your employer decides on these
how much you can earn.
rates based on the job you have.

When you start a business, you’re

the owner. And unless you sell it or
transfer that job title to someone
Employees usually have opportu-
else, you’ll continue to be the owner.
nities for promotions or changes
That means you’ve already reached
Job Title or in their job positions. Your leader
the highest position in your compa-
Position decides when or if you’re promoted,
ny, so there’s little room for advance-
or if you get to move to a different
ment. But instead of advancement
position in the company.
in your position, you can advance
the business itself to become more
successful.

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 Comparing Employment
CHAPTER 6, LESSON 4

DIRECTIONS
Choose a job you’re interested in and write an essay comparing and contrasting what it would be like to be self-
employed versus an employee in that role. End your paper by explaining which option you’d choose and why.

The profession of a doctor is a well-regarded one and needs a lot of education and training. Future
physicians need to choose between being self-employed or employed in a health facility, each with its
own set of advantages and disadvantages to make a well-informed decision.

Being a doctor in any setting offers a secure professional life. Doctors who are employed work regular
hours, earn a steady income, and have fewer financial worries. They also receive perks like health
insurance, pension plans, and paid vacation. Collaborating with healthcare teamsspecialists, nurses,
and administrative personnelimproves patient care. Employed doctors have less administrative
overhead since institutions usually take care of these tasks.

Being self-employed as a physician provides more autonomy and flexibility. A self-employed physician
can control their schedule, select patients, and define their services.

This autonomy can contribute to increased job satisfaction in individuals who prefer to have control
over their career. Additionally, self-employed physicians can potentially earn more if they are able to
establish a solid patient base and run their practice effectively. They can also introduce novel
treatment techniques according to their individual care philosophy.

Self-employment creates significant challenges. Practicing in a private practice requires excellent

business skills such as finance, marketing, and admin responsibilities that are usually taken care of by
healthcare institutions. Self-employed physicians also experience income uncertainty, especially in the
early years, and have to organize their health insurance and retirement themselves, which is more
challenging without employer assistance.

Conversely, although employed doctors enjoy many benefits, they may have limited practice due to
organizational policies and laws. Many healthcare organizations impose strict guidelines that can
undermine the quality of patient care and limit treatment. Employed physicians can also experience
burnout due to heavy patient volume and administrative tasks, which can rob them of the joy of
medicine. In summary, a choice between being self-employed and an employee as a physician is
based on individual priorities. I would personally choose to be an employee because of the stability,
support, and teamwork it guarantees. Self-employment is flexible, yet an employed role provides
structure and resources that enhance my patient care and focus on my passionmedicine.

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