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Contract or Perm?

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    Contract or Perm?

    I have 3 job offers:
    1. £760/day contract inside
    2. £106k perm + 10% pension + 15-20% possible bonus
    3. £122k perm + 3% pension + 15-20% possible bonus
    I read on GlassDoor about #3 a lot of people experiencing misogynistic, male-dominated, senior management political point-scoring, and even racist environment. This is the highest paid of the two perms in terms of base (not pension, though), but potentially a tough environment. #2 on GlassDoor has much better reviews - relaxed, good management, etc. But the 10% pension of #2 largely makes up for the lower salary. So maybe it's between #1 (contract) and #2 (perm).

    #1 net is £8750 pcm. #2 net is £7300 pcm.

    So, #1 (contract) is about £1400 more net if I get max bonus on #2, but obviously there's a lot of other benefits with a perm job that is probably worth a lot of this difference.

    So, at this point, I'm sold on #2.

    However, what makes #1 more interesting is if I sacrifice a lot of salary to a personal pension. If I sacrificed around half to a pension - that's £8700 pcm - I could net about £13,300 pcm in total. This now starts to make #1 seem much more interesting!

    Is this the wrong way to look at things though?

    WWYD?
    Last edited by Guest222; 4 October 2022, 19:44.

    #2
    Well it’s not relevant what others would do, they’re not you, are they Neo?

    If you only care about money, go for #3.
    If you want an easy life, go for #2.

    As for #1, I have no idea what that figure is because I don’t know the duration of the contract.
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

    Comment


      #3
      What's your age?
      Career goals?
      Your financial goals
      Financial position?
      Any family/dependents?
      etc.

      Comment


        #4
        Originally posted by JasonP View Post
        New here so pls go easy.

        I have 3 job offers:
        1. £760/day contract inside
        2. £106k perm + 10% pension + 15-20% possible bonus
        3. £122k perm + 3% pension + 15-20% possible bonus
        You don't have 3 job offers, you've got 2. A contract is not a job. It is short term and has a chance to fold before you even step foot in the place. It can end on the spot if the client wants and you've got £0 incomig while looking for something else. They say the second gig is the hardest to get because you've no income and with just one contract under your belt you will be up against hundreds of more experienced contractors. Contract falling in your lap while you are happily perm is not a good intro in to contracting.

        I read on GlassDoor about #3 a lot of people experiencing misogynistic male-dominated senior mgmt political point-scoring, and even racist environment.
        I find the last part of this incredibly difficult to believe in this day and age. I find it hard to think that a work environment can be racist with all the rules and focus on it at the moment. That sounds like something some woke liberal would say when they find themselves in a tough environment. I wouldn't be taking any notice of that personally. That said I know some environments like invetment banks with the massive bonuses could be like that but they get paid very well for it so it's dog eat dog. I struggle to believe an IT environment can be like that. If that is what it is like though then work hard, become that senior management and your troubles are solved. That sounds more like an interesting challenge than a downside to me to be fair.

        This is highest paid of the two perms, but potentially a tough environment. #2 on GlassDoor has much better reviews - relaxed, good mgmt, etc. But the 10% pension of #2 largely makes up for the lower salary. So maybe it's between #1 (contract) and #2 (perm).
        The 2nd one sounds like just your average job. Nothing special and plenty of them about. That means jobs like this will still be around if you take 3. and it goes south so I'd be gambling on job 3. for the extra mullah, if it doesn't work out I come back and take job 2.

        #1 net is £8750 pcm. #2 net is £7300 pcm.
        So, #1 (contract) is about £1400 more net if I get max bonus on #2, but obviously there's lot of other benefits with a perm job that is probably worth a lot of this difference.[/quote]
        And this gig WILL end soon. It's a contract. Could be as short as a day, probably 6 months if you are luckly. Maybe a year but unlikely. Factor in 2 months with no income a year when comparing contracts and the picture changes.

        Also, taking 1 and you'll be poorer than you've ever been in your life, or you should be. You need to save every single penny possible until you've got 6 months of living in a warchest. If you can't find work you need this to survive. I've seen grown men crying when their contracts have been pulled and they don't have anything to cover themselves for next month. So you'll not see any financial benefit from the contract for a good 6 months at least until the war chest is built up.. and then you don't touch it for love nor money. You WILL need it at some point. Bench time happens to all of us.
        So, at this point, I'm sold on #2.

        However, what makes #1 more interesting is if I sacrifice a lot of salary to a personal pension. If I sacrificed around half to a pension - that's £8700 pcm - I could net about £13,300 pcm in total. This now starts to make #1 seem much more interesting!

        Is this the wrong way to look at things though?
        #2 is totally reasonable. You've not got giddy about the contracting income which is highly unusual but absolutely correct. If you are consider perm jobs then I'd drop the idea of contracts completely and for me I'd be going #1 for the challenge.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          Originally posted by JasonP
          If it's only about money, then #2 and #3 are fairly equivalent because of the uplift from the pension of #2. Yes, #3 is still a bit more, but I also care about the working environment (hence what I found on GlassDoor), so that's why I said I'm sold on #2 up until the last part of my post re salary sacrifice.

          So, for that, to answer your question, #1 is 6 months initially. But from what I know of other contractors there doing similar jobs in same or similar teams through the same agency, I expect it will be extended for 2 years.
          Never fall for the extension. Your contract is as long as your notice period, which in most contracts is zero. Budget can go, face doesn't fit and then we've got the mess of the IR35 changes so it's gonna be mayhem.


          Age: 43
          Career goals: Leadership - I'm split on technical leader or people leader (e.g., engineering manager which is my current job). But I also love to code and build. For example, I'm the CTO for my own blockchain business (on the side), but I spend 90% of my time coding. My day job I'm engineering manager where I spend 90% of my time people managing. I like both. ?
          Financial goals: Get to a point where I earn $20k per month passive income (e.g., from property and crypto staking yields).
          Financial position: Currently own 4 properties worth ~£500k each about 50% mortgaged. Crypto investments currently worth about $1m.
          Family: Wife, 3 kids aged 0, 1, 4.
          Problem you've got here is you can't be split as a contractor. You'll be up against people that are 100% one or the other and will pip you to gigs. So on that comment alone I'd write off contracting.

          The rest of the stuff you wrote and particularly that bottom line nails it for me. I would be taking #2. 1 and 3 will load up your life and bring stress that you really don't need and the kids should be 100% your focus. Take the easier job, focus on your out of work stuff and grow it and spend time in the best years of your children. When they've grown up then start taking stressful or risky jobs. Even is a fairly laid back job you can hone your skills and progress in your career. When you've enjoyed your time with the kids to the full you'll pop out upskilled and ready for the next challenge.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #6
            Don’t forget you owe me £1,000.
            …Maybe we ain’t that young anymore

            Comment


              #7
              Originally posted by WTFH View Post
              Don’t forget you owe me £1,000.
              But I paid you in kind after the CUK Xmas do??
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                I’m not sure I’d hire anyone who couldn’t make this decision on their own. It shows a lack of judgement, so I do hope that JasonP isn’t your real name.
                "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
                - Voltaire/Benjamin Franklin/Anne Frank...

                Comment


                  #9
                  Originally posted by JasonP

                  You have to fulfil the request before you get the reward.
                  You're not banned.
                  …Maybe we ain’t that young anymore

                  Comment


                    #10
                    Anyway, if it was me and I had 10 job offers for a job that was starting 3 days ago, I would choose the one that best fitted my requirements and lifestyle. The one that best allowed me to do what was most important to me. So maybe you need to choose one that gives you the time to work out who you are, not who you think you are, or who you dream to be.
                    Your financial position, skin colour or gender ( https://forums.contractoruk.com/busi...ml#post1507118 ) might be important to you.
                    Others will value time. Time spent with those you love. Time spent with children as they grow up. Time to teach them values such as honesty and integrity.

                    But when you were asked earlier about that, you gave your family 7 words (4 of which were numbers) and the rest of that missive were dedicated to talking about how financially wealthy and important you think you are. You can't buy your children's youth. If they grow up to be like you and you wonder where you went wrong, it will be too late.

                    So, choose the job that best fits the things that are most important to you.
                    Then go off and learn about truth and integrity, learn about how to ask for and accept help. Learn how to say thank you. The kind of important life skills that children learn from their parents, if their parents have those skills themselves, or can be bothered to spend time with their children.
                    …Maybe we ain’t that young anymore

                    Comment

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