From 'work flexibility' to 'unsteady paychecks', the ups and downs of freelancing

Niharika Banerjee, a former journalist, decided to quit her permanent job in New Delhi and chose freelancing as a career path to enjoy the "ownership" of her work this year. Banerjee also worked with reputed PR agencies briefly after quitting journalism. She has now decided to completely obliterate the title "full-time employee" in her CV and plumped for freelancing.

"I felt that having skills across journalism, advertisement, and PR agencies, I was severely exploited and underpaid. I have unique skills in the media industry, and everyone wants a pie with the least pay," Banerjee told Storyboard18.

Like Banerjee, millions of youth have chosen to work as freelancers in the country without committing to full-time employment.

According to Jaideep Kewalramani, Head of Employability and Business and COO at TeamLease Edtech, there has been a notable rise in freelancing opportunities in the advertisement, media, creative, and entertainment industry, particularly due to the accelerated digital transformation that took place during the Covid-19 pandemic.

The Indian media and entertainment sector is likely to experience a 10.2 percent growth rate, reaching Rs 2.55 trillion by 2024 and Rs 3.08 trillion by 2026, as per a FICCI-EY projection.

Amid the growth of generative Artificial Intelligence (GenAI) and digital platforms, the freelancing jobs in the media and creative industry are soaring, Nisha Singhania, CEO & Managing Partner, Infectious said.

⁠"Given that a lot of companies are moving to project-based models rather than retainers, companies find it cost-effective to hire freelancers rather than maintain a large number of permanent employees," Singhania added.

Uttara (name changed), currently working as an Account Executive at a PR agency, started freelancing three years ago. "I started freelancing during quarantine. The transition was motivated by a desire for greater flexibility and control over my work. While I enjoy my permanent role, I feel limited by the structure and want the freedom to choose projects that align more closely with my interests and expertise. Freelancing has also offered the opportunity to work with a diverse range of clients, which has been incredibly rewarding".

Freelancer pay

Freelancer Jinzy Moli said her work as a freelancer gets rewarded and recognised, and gets paid only for the assigned task. "In a permanent job, the pay scale of our talent, ability, and skill is decided by the company. However, in a freelance job, it will be set by our side. Besides, a permanent job forces you to take care of additional tasks to get a decent appraisal."

Moli said that a permanent employee may also face "office politics", and job security is another bigger concern.

According to TeamLease Edtech's Kewalramani, compensation for freelancers versus permanent employees varies widely depending on role, experience, and specific niche within the industry.

"An entry-level freelancer might earn Rs 20,000-Rs 40,000 per month depending on the project, while a permanent employee in entry-level roles typically earns between Rs 25,000 and Rs 50,000," Kewalramani said.

However, freelancers with more experience and expertise, especially in high-demand areas such as graphic design, video editing, and content creation, could earn more than Rs 1 lakh a month, he added.

Taniya Arora, Senior VP and HR Head, Cheil India, also highlighted the differences in pay packages between a freelancer and a permanent employee. According to Arora, a mid-level employee may bag Rs 10- 25 lakh per annum while a freelancer with the same work experience may get a paycheck of Rs 14 lakh-22 lakh annually. At the senior level, a freelancer may earn Rs 30 lakh-Rs 90 lakh per annum as against a full-time employee with a pay package of Rs 40 lakh to Rs 70 lakh per annum.

"Freelancers do have the potential to earn more per hour compared to permanent employees, but then again their income can be less predictable and more dependent on the number of projects they secure," Singhania told Storyboard18.

Uttara said there is always uncertainty about "inconsistent income" in her career. She added, "Freelancing requires careful financial planning to manage the ebbs and flows".

According to Gaurav Pandey, who used to be a stringer reporter for a leading English daily, "You don't get paid to write news but then if you are writing features or for clients you get paid handsomely."

The challenges

Unsteady paychecks, no health insurance, and other employee benefits are some of the downsides of a freelancing career.

Cheil India's Arora said, "Freelancers face challenges regarding payments being on time, which may affect their monthly spending and commitments. Also, they may miss out on prestigious projects as they may have been offloaded to an agency."

To overcome irregular income, freelancer Uttara said she has created a financial buffer and diversified her client base to ensure a more consistent flow of work.

Another freelancer Moli agreed that "job security" is the challenge even at freelancing, and added that "maintaining good communication can help solve this".

Freelancer Banerjee says she finds it difficult to juggle more than one project. She added that as a writer, she has started to use generative AI to manage stress.

Uttara pointed out that another challenge in a freelancer's life is "working in isolation". "I make a conscious effort to network, attend industry events, and sometimes work from co-working spaces to stay connected with others in the field,' she added.

Former freelance journalist Pandey said that lack of proper identification and accreditations were major obstacles for him. "I overcame these challenges through interpersonal and PR skills," he added.

The way forward

Several experts have predicted a robust growth in freelancing career options in the ad, media, creative, and entertainment industries. "The flexibility, scalability, and cost-effectiveness of freelancing make it an attractive option for companies looking to stay competitive in a fast-paced and content-driven market," Kewalramani said.

Stuthi Vasudevan, Collaborator and Consultant, Talented Agency said, "Startups — creative or otherwise — are an affirmation of the new culture, by announcing a well-defined value system, with built-in accountability. If this trend sustains, with the new era of leaders walking the talk, perhaps the need for freelancing as a rejection of the current system will reduce significantly".

Arora said, "In the world of SIPs and mutual funds, where higher returns are possible on a faster turnaround time, the workforce does not believe in investing in PF accounts."

Meanwhile, freelancer Banerjee shared her life plan, saying she would go back to her hometown to lead a quiet life. "I may launch a micro-enterprise and also consult a few months of the year to earn."