From the Desk of Loy Machedo: Employer Versus Employee – Which Is Better & Why?
I get asked this question every single week by some aspiring young man, ambitious young woman or a frustrated employee. Almost everyone wants to change their life and yes ‘change everything’
But the question is – what is the reality of the other side?
Is there a clear cut definition of what is an Employer and what is an Employee?
Well – here is an article that is written with the intention to help you get a clearer vision of both.
If you feel this article does help you, do share it with others.
Also, let me know your thoughts about it.
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Employer or Employee – Which Is Better & Why?
Earning a Salary of **USD $136 per month** to being paid **USD $35,120 for 14 Hours Work – **When I share this story with people, they obviously assume, the former was that as an employee and the latter was that as an entrepreneur.
I tell them yes.
When they ask me what am I selling (product or service) – I tell them – I sell the Brand “Loy Machedo”
So then the obvious answer – people assume without even asking is “So it’s better to be an Employer – Right?”
This is where I surprise them and tell them….No. Not Exactly.
**Let me explain.**
Employer or Employee – Which Is Better & Why?
My career started off as a Cleaner who would clean Toilets, mop floors and do the dirty work as an employee. The reason I accepted the job was that
1. I was a school drop out. And I do not have any degree from any institute.
2. I didn’t have money even to eat a decent meal.
So in order to survive, I did what any normal person would do – grab any job possible. So I have gone through every possible scenario you can think of to survive.
And then I slowly took every opportunity to rise through the ranks…..
And in my 24 years of working……these are the following roles I have taken
Employer or Employee – Which Is Better & Why?
**THE ROLES I HAVE TAKEN AS AN EMPLOYEE**
As an employee, I have experienced the following roles:
1. Toilet Cleaner
4. Dish Washer
11. Movie Hall Cleaner
12. Counter Staff
13. Sales Staff
14. Credit Card Salesman
15. Insurance Salesman
16. Gym Instructor
17. Sales Manager
18. Marketing Manager
19. Marketing Director
20. General Manager
21. Training Manager
22. Training Director
23. Managing Director
Like they say….Been there…Done That.
**So now comes the big question.**
Which is easier, becoming an employer or an employee?
Let’s understand the question first.
What do we define as in Easy?
Getting a job?
If you are talking about getting any job – of course, it would be easy.
Who wouldn’t want to employ someone who can deliver USD $10,000 of value for USD $1,000 salary?
If there is an unskilled job like cleaning or cutting grass or mopping floors (not trying to demean those jobs) which do not require specialization (like those of a software programmer) of course it is easy.
So lets balance the question……
But if we were to balance the question for the sake of common sense and a logical argument – let say – Getting a job with a guaranteed income of USD $50,000 per month (all inclusive) to Being a Self-Employed with a guaranteed income of USD $ 50,000 as net profit – which one would be better?
First, Let’s look at some of the Pros / Cons of being an employer versus employee
- Employers are accountable to employees, share holders, partners, debtors, vendors and almost everyone
- Employers enjoy a level of authority and power that no one else can enjoy but as an Employee – well you do not have this privilege
- And as an Employer, you can be taking a vacation while your employees would have to work even on a day off (This especially is true in Middle East Counties especially where expats are concerned).
- As an Employer, you pay people less and ensure they deliver more
- Employers have to know and be smart enough to handle all areas of your company from Finance to Sales to Logistics to Payment collections to Legal aspects of the company
- Every day is a day of expenses for you while for an employee – everyday is another day of revenue.
- Everyone is out to please you while as an Employee you have to please everyone
- From being super successful – one mistake by anyone – not even by you – can cost you everything
- Employers cannot actually switch off from work. They always have to keep an eye on the business as anything can happen at any time.
- If you are no longer interested in your business – your only option is to sell off the business or if the business just closes down due to loses – it can spell disaster, bankruptcy or even prison time for you
- The harder and smarter you work and the more you make others work for you – the more you enjoy the fruits of labor
- The sky is the limit for your success but for an employee there are limits.
- When public holidays are declared – it will spell disaster for your business while for an employee – it is a free payday!
- You are the Boss & You call the shots unlike the Employee who cannot
- You can never ensure that everyone works harder than you (although in reality – you work harder than everyone else)
- You decide of the plan of action while the Employee has to follow instructions
- You talk, you order, you instruct – And everyone listens to what you have to say while in the case of the Employee you have no choice in the matter
**Now in terms of benefits of being EMPLOYEE versus EMPLOYER**
- Every day is a day of revenue for you – as long as you report to work
- Factors not related to your line of work or performance like Educational Qualifications, Race, Ethnicity, Background, Religion and Personal habits can be used against you while climbing the corporate ladder.
- If you are not interested in the job – you can simply quit. There are no legal bindings once the resignation is accepted.
- If you do not like the company or the people – it is comparatively easier for you to just jump ship
- Responsibilities are incredibly lower than that of a company owner
- Stress Levels are incredibly lower as an Employee than Employer
- The harder you work, you may or may not be compensated. It all depends on the job profile and terms & conditions of the contract
- There are limits to how much you can grow in the corporate world as an employee
- Unless you are a job profile where productivity can be measured (like sales numbers) you can afford to give in less than 100% – to even just sitting on the chair and warming it in the office
- When public holidays are declared – it is fun because you get paid for them
- You are absolutely guaranteed a salary end of the money
- You are only accountable to your own job and its targets
- You can afford to be good at only your job and ignore all other areas
- You can afford to call in sick or skip work or take a holiday
So now – when you balance the two what do you think?
Here is what I think.
Not everyone is cut out to be an Employer.
Agreed, there is this fascination and myth that
1. You work for yourself and your brand
2. You are your own boss
3. You live a life of independence
4. The harder you work the more you will succeed
5. You will have the freedom to do whatever you wish with your time
But the reality is…
1. You end up working for your brand – once again you are an ‘employee’
2. You may assume you are your own boss – but the fact is – you are now everyone else’s servant – you have to serve and keep people happy. Before it would be ONLY your boss – now it is everyone
3. You do not live a life of independence – rather you live a life of inter-dependance
4. The harder you work the more you will not succeed – why? Because you need teams to work equally hard. So you end up not only working hard – you have to make sure others are working equally hard or harder
5. Freedom? Well you cannot let your eyes off the ball or else it will go out of control and it can even spell disaster for you
6. And the biggest factor of all is – maybe just maybe ‘something’ can happen – some policy change, some fraudulent deal (where you get cheated), some wrong decision, some strategic move – and it can end up costing you millions.
Employer Versus Employee – Which Is Better & Why? – THE MOMENT OF TRUTH
It is estimated that around 17,660 new businesses start every day.
Out of 6.5 Million New Businesses that open every year
* 50% will fail within the 1st two years
* 30% will survive 5 years
* 20% will survive 10 years
* 1% will make it through the 20-year mark (which is very rare)
So yeah – you can look at it as an optimist and say Wow, so 65,000 have a chance to succeed!
But then you are using an Optimism Bias or Confirmation Bias to support whatever it is you want your Cognitive Dissonance to believe *(or is simpler words – you will just choose to believe whatever you want to believe by Cherry Picking whatever suits you)*
But then keep in mind out of 6,435,000 people fail every single year. And those 6,435,000 people – ALL OF THEM believed – they would succeed….
So now the question begets – why did they fail?
Do you think they wanted to fail?
Do you seriously think – anyone gets into a business or relationship or venture – to fail?
The reality is – no one does.
So I think it is all about being realistic.
Just because you are a great or fantastic employee – doesn’t mean you can become a great businessman. And yeah – at the same time – just because you are an exceptional businessman – doesn’t mean you can stand the politics and nuances of being an employee (and taking barking orders). Sometimes even something silly yet powerful characteristic like your ego, your pride, and your personality – can prevent you from being an employee.
So – I would just conclude by saying – Both being an Employer and Employee – they are mutually easy to ‘start’ but very challenging to continue. Each one of them has their own obstacles, opportunities, threats, and risks.
So if you are a low-risk person, wants a balanced life, likes to be lazy and be guaranteed a salary end of the month – stay as an Employee.
But if you are high risk person who is prepared to do and risk anything, everything and does it all while being absolutely obsessed about making money and do anything to stay float – think of being an Employer
Personally me – I have made **USD $35,120 for 1 Days Work**
But what people do not hear about is that I have lost over $500,000 in bad decisions, mistakes, and foolish investments.So while it may look all glamorous – it is not like that at all.
So while it may look all glamorous – it is not like that at all.
Here are some areas almost NO ONE thinks about.
- Do you have the Emotional Quotient to run a business?Are mentally stable?
- Are mentally stable?Do you have money management skills?
- Do you have money management skills?Do you have Business Intuitiveness?
- Do you have Business Intuitiveness?Are you mature enough to handle, manipulative and thrive on people?
- Are you mature enough to handle, manipulative and thrive on people?Do you have a cold-blooded money-driven agenda & purpose
- Do you have a cold-blooded money-driven agenda & purpose
- Do you have what it takes to do what no one else would do – just to succeed?
Trust me when I say this – ALL Employers, Businessmen, and Visionaries – they go through a lot – but seldom if ever – do they show it or talk about it.
It is not all that romantic as it seems. And sometimes – it is better to choose the ordinary over the mirage of being ‘extra-ordinary’
You do not have to believe a word I am saying.
Just ask yourself – why isn’t it then that there are 6 Billion people on our planet and not everyone is a successful businessman?
So Employer or Employee – which is better or easier – I leave this decision in your hands.