Salaried Employment Vs Self-Employment: Which Is Better?

Many people are finding it hard to get jobs, years after graduation. Some see it as an opportunity to be self-employed while others persist in searching for jobs.

Quite a number of those in the latter group embark on postgraduate degree programmes hoping that acquiring higher qualifications will improve their chances of getting jobs. But the situation gets worse as the harsh economic climate leads to the closure of many companies and downsizing by others to remain afloat. Companies that have been so affected in Nigeria include Shoprite, Microsoft, Unilever, Procter & Gamble and Glasgow Smith Kline. This situation is not peculiar to Nigeria.

This was not the case decades ago. In the 1970s to early 2000s in Nigeria, for instance, employers of labour like Nigerian Breweries and some oil companies organised interviews for final-year students and hired those who met their standards into enviable positions. The Naira was also strong then, higher in value than the dollar, in fact, in the 1980s. So, white collar workers, especially those on senior cadres, could live comfortably and even vacation abroad with their families.

Now the cost of living is so high and the competition for available jobs has become so stiff that the questions arise: Why do people look for salaried employment given the difficulties explained so far? What are the enticing benefits of that sort of employment? What about self-employment? Does it have its own enticing benefits?

To get answers to these questions, I conducted a vox pop via WhatsApp to get the views of a diverse group of people. Below are some of the responses I obtained. I am glad they were quite frank and direct.

In favour of salaried employment:

Mr Omotayo Ajayi (Telecom Engineer)

“I prefer salaried work because it provides financial stability and security, which is essential for my peace of mind. With a regular pay check, I can budget and plan for the future without worrying about unpredictable income.
“Additionally, salaried work offers benefits, such as health insurance, retirement plans, and paid time off, which are valuable perks. I also appreciate the structured work environment, clear expectations, and support from other colleagues and supervisors, which help me stay focused and motivated at all times.”

Miss Victory Amaraegbu: (Admin. Officer)
“Delving into self-employment would mean accepting that I can go some days without making money, and this I can’t even try at this point in my life. There are a lot of things I need money to sort, and I can’t afford such contingency.”

Mrs Chioma Ifeanyichukwu (Journalist)

“With the present situation of our country, salaried work is better because a salaried job will give 80% assurance of the salary, all things being equal.
“Due to the current bad economic situation, being self-employed places you on high risk. Your income is not stable and sometimes, nothing comes in by the way. The high cost of production of both goods and services have made profits so insignificant. The income you get may not be enough to take care of your needs and still be re-invested for the growth of your SME because of high cost of living.
“Again, having a salaried work can give you a little time for side businesses which give you extra income.”

In favour of self-employment:

Mr Miracle Ogbonna (Student)

“In my opinion, self-employment is the way to go. There are several reasons why I think this is the case.
“For one, being your own boss provides a sense of security that you just don’t get with a salaried job. You don’t have to worry about being laid off or fired. Plus, you get to enjoy the freedom that comes with making your own decisions. You actually take control of your own destiny.
“In Nigeria’s current economic climate, where jobs are scarce and pay is often low, self-employment makes a lot of sense. The stability that comes with a salaried job just isn’t there anymore.
“On the other hand, with self-employment, your earning potential is unlimited – it’s all up to you.
“The only downside is usually the capital required to start it up, but then the rewards and benefits are just too alluring compared to salaried work.“

Mr Osakpolor Emwinromwankhoe (Lecturer)
“I prefer self-employment due to the following reasons:
“1. A self-employed person is usually not under any form of pressure to meet corporate goals or targets. S/he just simply outlines the goals to be achieved and makes efforts, one step at a time, to meet them.
“2. A self-employed person doesn’t wait till the end of the month to receive salaries. Because s/he is solely in charge of the business, payments can be made when necessary, especially during emergencies.”

Mrs Adachukwu Ubanna (Tailor)

“I would say self-employed work is better than salary jobs because it gives you an opportunity to put your own ideas together and bring them to reality. You get to be your own boss and create employment opportunities for others.”

As the views shared show, there are good reasons to choose either salaried work or self-employment. It all depends on one’s goals and circumstances. For instance, those who have long-term passion projects that cannot be implemented within the context of salaried work will probably choose self-employment, while those who are anxious about coping with their bills in the uncertain times that make running a personal business very challenging will likely opt for salaried work.

What is your view on the topic? Kindly share it in the comments.