Pros and Cons of Freelancing vs. Working for a PEO

5 minute read

written by Cápita Works

Oct 17, 2022

When it comes to finding a job, it can feel like there are a million different options. Whether you'd rather work from home, have the flexibility to take on new projects as they come up, or find an opportunity that doesn't require a long commute, there is something for everyone.

Working from home has become increasingly common over the past few years. But with so many great remote work opportunities out there, how should you decide which one is right for you?

Keep reading to learn about the pros and cons of freelancing vs. working for a PEO.

What is a PEO? 

A Professional Employer Organization, or PEO, is a staffing agency. They are usually private companies that specialize in connecting employees with employers. A PEO handles payroll, benefits, and HR, for their clients. A remote PEO will partner with companies that want to hire remote workers but don't have the resources to set up their HR, benefits, or payroll system. The PEO will handle all of the HR logistics for a company, so all they have to focus on is selecting the right employee.  


Freelancing is when you take on a project or clients on a short-term basis, usually without the promise of ongoing work. Freelancing can be a great way to get your foot in the door and build your portfolio with some experience. Many remote workers started freelancing, and many still prefer to mix it in with their full-time, long-term work. It's a great way to get your name out there, make connections, and build a portfolio of work to show future employers. 

Pros of Freelancing

Opportunity for growth - Freelancing can be a great way to get your foot in the door, especially if you're starting in the workforce. You'll likely have to take on smaller projects that help hone your skills, but you can build your portfolio by moving on to more significant tasks as you progress.  

Opportunity to work in your field - Freelancing is a great way to get your foot in the door in your chosen field. Even if your part-time work, while you're getting your name out there, leads you to a full-time job, you'll be able to start working in the field you want to work in instead of working your way up from the bottom.  

You control your schedule - Freelancers set their hours and decide when they're available for work. Setting your hours is great for those who want to work full-time but need flexibility for family or medical reasons. 

Cons of Freelancing

No consistent income - Lack of consistent income is one of the most significant disadvantages of freelancing. You might have periods where you're busy and hardly have time to breathe and other times when you could use the extra cash but don't have any projects lined up.  

Difficulty Finding Work - While there are plenty of websites, not all are equal. Finding the right clients who want to work with you on your terms and timeline can be challenging. 

No Security - Freelancing is excellent for flexibility, but it also comes without much security. You don't get paid if you don't get work or find clients. You also don't have health insurance or other benefits from a traditional job. 

Difficulty Building a Career - One of the most significant drawbacks to freelancing is the difficulty of building a career. While you can undoubtedly gain experience and expand your skill set, it's much more challenging than when you work for one company. 

Pros of Working for a PEO

Guaranteed income - Working for a PEO, you'll have a consistent flow of work, which means consistent income. Consistent income is great for parents or others who need stable finances but wish for flexibility in their schedule.  

Access to clients you might not have been able to reach - While freelancing, you're responsible for finding your clients. With a PEO, you'll be connected with clients and have opportunities to network. 

Safety and Security - One of the best parts about working for a PEO is the security and stability that comes with it. You know precisely what you're getting into, you know your pay and benefits, and you have an employer who will support you if you need anything. You get the structure and consistency that comes with working for a company. - You get access to benefits like health insurance, 401k, and paid time off. 

Upside Potential - Working for a PEO can also provide room for growth. Some PEOs offer opportunities for you to develop and train. Being equipped with development and training can be an excellent option for those who want to see a long-term career in the future. 

Cons of Working for a PEO

Time Commitment - Working for a PEO means you're working a full-time job, but you'll have to manage your hours well, or you won't get paid overtime if you overwork yourself. Working for a PEO is a serious commitment and is probably not ideal for those who want the freedom to work when they want to work.  

Adhering to company guidelines - You must comply with the company's creative standards and brand identity. You have to make sure the creative work you're doing fits into the company's larger strategy. Compliance is essential if you're in a position involving customer interaction and ensuring that your work complies with all company policies and regulatory requirements. 

Summing Up

While freelancing and working for a PEO both have advantages and drawbacks, they offer great opportunities for remote jobs. Now, you have to decide which one is right for you. When choosing between freelancing or working for a PEO, think about what you want to get from the job. If you want the security of a full-time job but don't want the 9-to-5 experience, you might want to consider working for a PEO. If you're going to work when you want to work and set your schedule, then freelancing might be your better option.   

Working for a PEO is a great way to get consistent work and earn a living with little risk. If you're interested in working remotely and with the benefits of working with a PEO, consider applying at Cápita Works. We provide private health and life insurance, life and on-demand training, social events, and wellness programs, among other perks. You can check out our job openings at or contact us at for more information.   


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