Contract vs Permanent in Investment Banking ?

**Sockpuppet** · 31 May 2007, 21:38

Flip a coin. You really dont expect some misfits on the internet to give you an answer do you?

**scooterscot** · 31 May 2007, 21:42

The difference between deciding to contract or not is, in my opinion, a lifestyle choice. Do we want to be told what to do or know what you need to do? If you have to ask it’s probably the former.

**biggie** · 31 May 2007, 21:53

tnks guys but was hoping for a more constructive response with guys who have knowlege in this area.

**reginald** · 31 May 2007, 22:02

contract contract contract avoid all permie idiocy in investment banks at all costs

**scooterscot** · 31 May 2007, 22:16

Take home pay - There rising are they... What has take home pay got to do with property prices? Is the bonus guaranteed? THP should not be 'the' deciding factor.

Job Security - your having a laugh. If this is a real concern don't even think about contracting. Can you forecast employment oppertunities 12 months down the line? I can't foresee what will happen next month nor would I want to. I've never been contracted longer than 6 months.

Career Progression - How long have you been a contractor? 'Not one of those people that want to fight to get to the top' he/she says...

I've often heard it said in the world of permiedom 'each employee is promoted to his or her own level of incompetence' call that progression. You get further being a contractor, experience experience experience

Long Hours - a real contractor would not care for the hours it takes to get the job done, what's important is your reputation, which in turn gets you more work and more £££

**christhedon** · 31 May 2007, 22:19

Welcome to the board Biggie. Firstly, I have to say that sockpuppet has a point. Not that I think that people here are misfits, more that you have to take huge pinch of salt with what some people say and less with others and that in itself is another decision you need to make about the answers you get on the board.

I found that I posted a lot of supposedly 'stupid' questions and I've managed to do things that people on the board said wasn't likely, even though I may have been dejected at the time by some of the comments. I found that more with this board than any other board I've been on. At the same time I've got some very useful information here as well. Its just a learning process I guess.

Anyway heres my thoughts on your situation based on your structure and unfortunately you'll get more questions than answers:

What business area do you work in now?

1) Take home pay: Question: Have you included pension and benefits in the calculation? Why don't you ask the employer what the typical bonus is in their area? Why don't you ask if you can get a guaranteed bonus? A 25% bonus in a front office IT (presumably you'll be FO?) area is nothing special. So the permanent job may likely pay more than the contract one.

2/3) Job security and career progression: You can get sacked whether you are permanent or contract so I wouldn't just think about it in the 1 year terms. (By the way 1 year contract is quite long in my opinion). On the other hand I believe its harder to sack a permanent employee than a contractor. However, do you honestly think that you will get sacked for any reason?

You don't say what business area the small investment bank is in? If they were vague why don't you go back to them and ask them whatever you want to know (within reason)? Career wise in a small place you have more chance to shine because there is less competition at the same time you mentioned you don't really want to rise to the top.

With regard to learning the business what exactly is the Credit role? How do you know you are going to learn the business in it? When you say you want to learn the business what do you mean? Products or business processes or how to trade? How do you know the role will satisfy any of those requirements?

Hours wise I think you have to work whatever hours necessary to get the work done. If it seems unreasonable then you can get your hours changed or leave. You're quite lucky to get paid by the hour in the contract, most I've seen in my very limited experience are daily contracts. Also, in contracting you still need to get involved in politics to a certain extent e.g. as in most big environments you don't do everything and you need to ask others to do things.

For me it seems like a lot of unanswered questions, which either you haven't got the answer to or didn't write about in your question. Take what I say with a big pinch of salt especially getting back to the prospective employers with questions which could be very sensitive as I don't know your situation fully. Write back if you think thats helpful or need any other input.

I hope that helped in some small way.

Cheers and good luck,

Chris

**christhedon** · 31 May 2007, 22:26

oh for the money comparison thing you also may want to take into account tax...

**BrilloPad** · 1 June 2007, 07:31

In many ways you are better off contract in IB - banks will take the p155 if permie.

Remember that working in an IB is not that bad - its the commuting thats the killer.

Having said all that I am thinking of going permie after 19 years contract - cos I need to survive the next recession.

**angusglover** · 1 June 2007, 07:34

Originally posted by Sockpuppet

Flip a coin. You really dont expect some misfits on the internet to give you an answer do you?

Misfit???? I will have you know I resemble that remark!!!!!

Contract vs Permanent in Investment Banking ?