Contract vs Permanent in Investment Banking ?

[biggie]

many thanks Christhedon for your time and effort in your reply....

it has been most helpful, I know it's a decision I need to make myself but at least I can get opinons and various of other prosepectives...

BTW I have account for Tax etc etc but not pension....

Also I 'm assuming i'll get at least a 10% bonus in the permie role, through I know it's not guarenteed....

thanks again

[BlasterBates]

It isn't just the area eg credit derivatives, what are you programming in, what would you be doing ? What do you want to do ? programming ? business analysis ?

Are you doing risk, pricing, valuations or something like trade entry. If you ain't doing valuations, pricing etc the types of instruments you work on doesn't make a lot of difference.

Look at the roles in Job serve and look exactly what they're asking for.

[Stan]

But I guess if I get a decent bonus then it won’t be such a big difference. .

...

Hate working really longs hours.

Unfortunately there is often a strong link between these two thing in IB.

I think this could well be a good case of six of one and half of the other and it is down to yourself what tradeoffs you make, good luck.

[Lockhouse]

I've contracted at Investment Banks for the past 15 years.

The only way to be permanent in Investment Banking is to be a business hire with a business bonus. You don't want to go being hired by the IT department. If you are not working and responsible to the business then go contract. Easy really.

[ChimpMaster]

I've contracted at Investment Banks for the past 15 years.

The only way to be permanent in Investment Banking is to be a business hire with a business bonus. You don't want to go being hired by the IT department. If you are not working and responsible to the business then go contract. Easy really.

At the IB I work at, contractors hired by the business are known as "temps" and are paid a lot less. The bulk of the business permies get paid less than IT permies. But then again this is the back office.

Re: Andrew - I doubt there's any recession on for next 2 / 3 years. There is definately one coming, but it'll take time to feed through to the economy. Just look at how buoyant the stock market is right now (unrealistically of course).

[DeludedAussie]

At the IB I work at, contractors hired by the business are known as "temps" and are paid a lot less. The bulk of the business permies get paid less than IT permies. But then again this is the back office.

Re: Andrew - I doubt there's any recession on for next 2 / 3 years. There is definately one coming, but it'll take time to feed through to the economy. Just look at how buoyant the stock market is right now (unrealistically of course).

And the recession started a few months after this prat gave his opinion

Hopefully the guy took contract rather then perm in credit which would have got wiped out

[SandyD]

many thanks Christhedon for your time and effort in your reply....

it has been most helpful, I know it's a decision I need to make myself but at least I can get opinons and various of other prosepectives...

BTW I have account for Tax etc etc but not pension....

Also I 'm assuming i'll get at least a 10% bonus in the permie role, through I know it's not guarenteed....

thanks again

Also a 25 to 30 days paid holiday, its an extra month pay!

[SueEllen]

Also a 25 to 30 days paid holiday, its an extra month pay!

You need the paid holiday to put up with all the tulip that comes from being permie.

[Bluenose]

And the recession started a few months after this prat gave his opinion

Hopefully the guy took contract rather then perm in credit which would have got wiped out

Holy 6-year-old-thread-resurrection.

Chimpmaster, are you still in IT ?

[Dominic Connor]

You might want to google my name why my opinion is useful/worthless (pick one)


>Permanent Role
>Within the hot area of credit derivatives, also may get a chance to work with >the very talented team members.

CD is a the pit of despond, a tragic cluster**** of Capita dimensions, the epicentre of gigaquid losses and colder than a witches tit, it is in no way a "hot" area the person who used this term is not only lying, they are taking the piss.

However, sorting out the mess can be lucrative and like all other financial products will be trendy again one day.


>Contract Role
>1 Year contract with a small investment bank but not sure which area exactly >they we’re a little bit vague in the interview.

Hard to evaluate that, especially since you don't say what you do, sounds like they need generic IT people.
The bigger bank will look better on your CV


>Take home pay ?
Price bonus at 25% of base, so as you say the numbers are close to the same, but given the costs, employers NI et al the permie job is marginally better.


>Job Security ?
>The contract is for 1 year which is great
I will bet money it can be ended very quickly if they want to.

> but it may or may not get extended, also credit derivatives within all banks is growing rapidly
In % terms yes, but from a catastophic fall.


>Career Progression ?
>Want to learn the business but like the contract role due to no politics etc etc.
Contractors are the result of a political process, you may prefer the types of politics contractors must deal with but don't delude yourself that they don't exist.

>Long Hours ?
>Hate working really longs hours, it would be ok occasionally for a 2 month period. But worried with the permanent role this could be the norm at least with the contract I’m getting paid by the hour.

Nothing you say implies that either option will give short hours.