Take a 45% cut post tax for a perm job to just about pay off the bills or wait?

[ziggystardust]

If anyone is considering a break after finishing a contract recently and is wondering what the market is like, well it's bad. Really bad. Having been on the bench late last year, then started a new gig briefly to then be diagnosed with a serious illness that laid me off work from March to June (yes just before COVID lockdown hit), my options have pretty much dwindled.

Living off the warchest, I thought I would bounce back within a month with a shiny new contract but nope. With less than 2 months buffer I have been furiously applying for perm jobs and even temporary jobs, as the market is just that tulip for contracting. Didn't ever think this would be how I'd be looking for work but it's with the prospect of losing the roof over my head it had to be done. So two interviews lined up for perm jobs next week, 45% less money than my usual day rate after tax etc. , with small, public sector organisation, completely different to the blue chip companies I've worked for over the last 10 years. Junior salary really.

Hate the thought of taking either one because of the possible message it sends to potential recruiters in the future and my skillset? Basically going backwards job wise and moneywise and think I've damaged my ability to earn my worth again. Would you do it or hold out to the bitter end?

This will also mean folding the company as after tax and VAT payments it's not worth keeping it running. With IR35 looming next March, I think my contracting days could sadly be over!

[sadkingbilly]

i'd take what you can get.
as you say, the market is dire ATM.
worry about the CV later, and there may be opportunities in the perm gig, you don't know.

[jamesbrown]

If it’s as serious as the roof over your head, then I think you’ve answered your own question. You must do whatever it takes. You can hardly leave it to the last minute to secure a permie job. If they’re getting a bargain, they know that you know that too and will be expecting you to jump at the earliest opportunity. I wouldn’t expect success right away. The permie job gives you flexibility. Yes, it may be harder to get back into contracting later on, but you don’t have the risk of bankruptcy forcing your decisions.

[Kprad35]

you should do anything to keep going so take the job - if you're good at your work and have past experiences, you ll eventually get the job that you would like to do. but for now, take whatever is available so money will keep coming in. Always remember if you are in good health you can find the work, that yu like, provided you have given your 100%. There is no such rule that taking low paying job adversely impact your career in the long run.

[SueEllen]

Why will it harm your skillset?

How will recruiters know that it was a permanent job?

[hairymouse]

Very similar to my story. Spent a long time on the bench and then COVID hit and there was nothing. Ended up taking a permie job for junior salary. 3 months later, I'm OK. It's good to be back to work and the salary covers the bills at least.

The only hard part was listening to my line manager bragging on a conference call to the entire company about how ex-contractors were available at "bargain" salaries these days.

[northernladuk]

This is going to sound very harsh for which I'm sorry (but not really) but your post is riddled with errors and problems.

If anyone is considering a break after finishing a contract recently and is wondering what the market is like, well it's bad. Really bad. Having been on the bench late last year, then started a new gig briefly to then be diagnosed with a serious illness that laid me off work from March to June (yes just before COVID lockdown hit), my options have pretty much dwindled.

We are well aware of that. There is a very long thread titled 'State of the market' that's been discussing this for a long time. It's been doom and gloom from about 6 months before the proposed IR35 change last year. Warchest should have been a priority for the last 12 months now.

Living off the warchest, I thought I would bounce back within a month with a shiny new contract but nope.

First mistake. The market is in turmoil and has been since the first IR35 proposals came and went. It was only put off for a year so it was going to be a difficult year and till it hit again. How isn't the time to be complacent. You should have been battening the hatches down and building that warchest like crazy. We couldn't see covid coming but being inbetween April's could have helped us enormously in a rather perverse way.

With less than 2 months buffer I have been furiously applying for perm jobs and even temporary jobs, as the market is just that tulip for contracting. Didn't ever think this would be how I'd be looking for work but it's with the prospect of losing the roof over my head it had to be done.

2 months buffer left or two months buffer since you thought you'd be back with a new contract? We've said endlessly on here that warchests should be 6 months absolute minimum, 12 if possible and at full rate so if you tightened the belt you could go on for a long time. It's OK people saying I've got 5 months if I tighten my belt but the problem is people don't see it coming so don't tighten it in time and then when then should be they just can't. Underestimating warchests is the reason everyone gets in to financial trouble.

So two interviews lined up for perm jobs next week, 45% less money than my usual day rate after tax etc. , with small, public sector organisation, completely different to the blue chip companies I've worked for over the last 10 years. Junior salary really.

Well that's great news isn't it??

Hate the thought of taking either one because of the possible message it sends to potential recruiters in the future and my skillset?

Another mistake. You should be overjoyed from what I'm reading back but the other mistake is the message. Have you thought this through properly? They see a CV with titles and experience, you then interview. Where in that process does it ask if you are perm and what you are being paid? If you are good you'll be able to blag your way through it. People have contracts for one or two years plus so how is this going to look any different than a long contract. If you think on your feet this won't be a problem but you need to start doing that. At the end of the day what option do you have anyway?

Basically going backwards job wise and moneywise and think I've damaged my ability to earn my worth again.

Jobwise you can spin it on the CV, money wise, it's a bazillion percent more than you are earning now isn't it? You thinking you damaged your ability to earn is yet another problem. It doesn't have to if you've got the right attitude.

Would you do it or hold out to the bitter end?

Would you carry on waiting for the contract in the middle of a global pandemic with IR35 looming in 6 months and the potential to lose your home and worse?Not the smartest question to ask really.

This will also mean folding the company as after tax and VAT payments it's not worth keeping it running. With IR35 looming next March, I think my contracting days could sadly be over!

Oh, at last, you mention IR35 next year. Another few mistakes in this bit. It doesn't mean folding your company at all, it's short(ish) term and there are options. Folding is one option but it isn't the only one. And your contracting days are over? Only if you are too wet and let it...

Sorry again, but not sorry again, for being very harsh but you have a very short term attitude and the only thing that is going to ruin your contracting career here is you. It's absolutely tulip, no one is arguing that so now is the time to step up, learn from the previous mistakes you made, do everything you possibly can to stay afloat and ride it out. Get a bounceback loan if that's even still possible, claim UC, stack shelves at tesco/be a postie or whatever to keep the money coming in. Take the first piece of work that comes your way to keep your sanity and CV current, get your head down and work and wait. It is quite possible you might not get another contract, lets be honest IR35 will kill us next year but you've got to make the best of that. Stay alive and healthy through the pandemic, then deal with April and then see what's left. People with the right attitude are likely to find something in the contracting world to keep going, those that don't have it won't.

Chin up, chest out and have at 'em.

[edison]

Very similar to my story. Spent a long time on the bench and then COVID hit and there was nothing. Ended up taking a permie job for junior salary. 3 months later, I'm OK. It's good to be back to work and the salary covers the bills at least.

The only hard part was listening to my line manager bragging on a conference call to the entire company about how ex-contractors were available at "bargain" salaries these days.

You just have to get on with it. It's the opposite of the years when hiring managers complained at how expensive contractors were. Many contractors were on to a very good thing for a long time but it's a buyers market now. That applies for perm and contract roles in nearly all sectors and skill sets and likely to be for some time.

[LondonPM1]

If anyone is considering a break after finishing a contract recently and is wondering what the market is like, well it's bad. Really bad. Having been on the bench late last year, then started a new gig briefly to then be diagnosed with a serious illness that laid me off work from March to June (yes just before COVID lockdown hit), my options have pretty much dwindled.

Living off the warchest, I thought I would bounce back within a month with a shiny new contract but nope. With less than 2 months buffer I have been furiously applying for perm jobs and even temporary jobs, as the market is just that tulip for contracting. Didn't ever think this would be how I'd be looking for work but it's with the prospect of losing the roof over my head it had to be done. So two interviews lined up for perm jobs next week, 45% less money than my usual day rate after tax etc. , with small, public sector organisation, completely different to the blue chip companies I've worked for over the last 10 years. Junior salary really.

Hate the thought of taking either one because of the possible message it sends to potential recruiters in the future and my skillset? Basically going backwards job wise and moneywise and think I've damaged my ability to earn my worth again. Would you do it or hold out to the bitter end?

This will also mean folding the company as after tax and VAT payments it's not worth keeping it running. With IR35 looming next March, I think my contracting days could sadly be over!

What is your usual day rate and the proposed perm salary - That way we can at least advise you of how correct your calculation is

[hairymouse]

You just have to get on with it. It's the opposite of the years when hiring managers complained at how expensive contractors were. Many contractors were on to a very good thing for a long time but it's a buyers market now. That applies for perm and contract roles in nearly all sectors and skill sets and likely to be for some time.

Yep, that's what I am doing. Getting on with it. Once the market changes then I'll make new decisions.