Permanent vs Contracting - Confused!

[Undecided]

Hi All,

I am currently contracting at an American Inv. Bank and have received an offer for permanent employment at a German Inv. Bank.

Current role: Project Manager, £500 per day, easy-going environment, 3 months rolling contract and I am in the 1st month, Prog. duration - 18 months. Work is okayish, location is closer to home.

Permanent Offer: AVP (Project Manager), £74k base + bonus. Joining a programme expected to last 2 years. Nice interviews. Offered the role after 2 interviews, whole process took 2 weeks. Budget sign-off delayed my offer but the bank came back in a month to finalize the offer.
Other Information that may be useful: Age - 28 yrs, getting married this year-end, have been contracting for 2 yrs now and never been out of work for more than 2 months at a stretch. Total 5 yrs of work exp.

The confusing bit is - with the bonus included, if paid (figures not disclosed by the potential new employer), would ithe perm offer be as good as my current contract? Plus, my current role is on a programme that is discretionary, so I can be kicked out anyday. Also, how long does it take to move into the next grade (VP) and then Director at an above-average performance in an inv. bank? I know working hrs may increase as I move into perm. employment.

Comments welcome from the experienced folks here! Thanks!

[Olly]

Hi All,

I am currently contracting at an American Inv. Bank and have received an offer for permanent employment at a German Inv. Bank.

Current role: Project Manager, £500 per day, easy-going environment, 3 months rolling contract and I am in the 1st month, Prog. duration - 18 months. Work is okayish, location is closer to home.

Permanent Offer: AVP (Project Manager), £74k base + bonus. ....contracting for 2 yrs now and never been out of work for more than 2 months at a stretch....Total 5 yrs of work exp.

crikey!!! what are we talking here £100K package and you've only been working 5 years. I'm doing something very very wrong

Well done, take the perm.

[northernladuk]

This is a toughie but let me throw a different angle in. Where do you want to be in 10 years time? Do you want to be a PM on £500 a day on your 20th contract or do you want to have achieved the best you can be and enjoyed the benefits of it?

You can contract PM for as long as you want but still be a PM (unless you get a very lucky break somewhere along the line). You may get to senior PM or something similar but you have hit your roof.

Do you think you are capable of more, can you be a senior PM in 3 year and a Programme Manager in 5? Will be bother you that if you stay contracting you will never know?

At 28 are you so hell bent on the money you are not bothered about the long term and what you could be on at 38+

I did the career path first before coming in to contracting so reached a level I was happy with and can say I did that. I went contracting from there knowing I did my best and happy to contract at whateve level.

Does that help your decision making process?

And if you really want the opinion of a complete stranger.. I say take the perm.

[bluedrop]

Would a perm lifestyle suit you? What do you think of the ratrace (promotions, appraisals etc)..
Personally, contracting suits my lifestyle better. I'd be bored to death in a perm role (no matter how exciting the work is)... I like it pretty straight fwd. Pay me for what I do, happy to move on if you dont need me. I dont want someone breathing down my neck all the time and I hate appraisals. So on the whole, I think I am a 'contractor' at mind. Having said that, I am fairly new to business. Just 10 months old .I am approaching my possible void period. So, I dont know if I'll feel the same if I am sitting idle for 3 months!

On the other side, my husband is a hardcore permie. He can never handle the stress of 'job search' every 6 months and possible voids. Does your wife/Gf have a perm job that pays well? In that case, I'd think you have a good cushion - you can take some risks!

Btw, I am 28 too!

[bluedrop]

crikey!!! what are we talking here £100K package and you've only been working 5 years. I'm doing something very very wrong

Well done, take the perm.

like it!

[Liamxtype]

This is a toughie but let me throw a different angle in. Where do you want to be in 10 years time? Do you want to be a PM on £500 a day on your 20th contract or do you want to have achieved the best you can be and enjoyed the benefits of it?

You can contract PM for as long as you want but still be a PM (unless you get a very lucky break somewhere along the line). You may get to senior PM or something similar but you have hit your roof.

Do you think you are capable of more, can you be a senior PM in 3 year and a Programme Manager in 5? Will be bother you that if you stay contracting you will never know?

At 28 are you so hell bent on the money you are not bothered about the long term and what you could be on at 38+

I did the career path first before coming in to contracting so reached a level I was happy with and can say I did that. I went contracting from there knowing I did my best and happy to contract at whateve level.

Does that help your decision making process?

And if you really want the opinion of a complete stranger.. I say take the perm.

Very good post, thank you!

[Undecided]

This is a toughie but let me throw a different angle in. Where do you want to be in 10 years time? Do you want to be a PM on £500 a day on your 20th contract or do you want to have achieved the best you can be and enjoyed the benefits of it?

You can contract PM for as long as you want but still be a PM (unless you get a very lucky break somewhere along the line). You may get to senior PM or something similar but you have hit your roof.

Do you think you are capable of more, can you be a senior PM in 3 year and a Programme Manager in 5? Will be bother you that if you stay contracting you will never know?

At 28 are you so hell bent on the money you are not bothered about the long term and what you could be on at 38+

I did the career path first before coming in to contracting so reached a level I was happy with and can say I did that. I went contracting from there knowing I did my best and happy to contract at whateve level.

Does that help your decision making process?

And if you really want the opinion of a complete stranger.. I say take the perm.

"Take the Perm offer" is what my heart says but my brain keeps taunting back "Dude, you are loosing out on great money. Money now (contract) is better than money tomorrow (bonus, if I get one)".
Having said that, I agree with you - I will never know my true capability if I keep contracting. In a contractor's capacity I can (max) be a Senior PM in 2-3 yrs. Fair to assume I can be a Director in 4-5 yrs from now, at above-average performance, in a permanent role?
Some data I missed posting - have a Bachelor's degree in Engineering and a Master's (Mgmt) from a global top 3 univ.
Thanks for your input, has strengthened my inclination towards the perm role.

[Undecided]

Would a perm lifestyle suit you? What do you think of the ratrace (promotions, appraisals etc)..
Personally, contracting suits my lifestyle better. I'd be bored to death in a perm role (no matter how exciting the work is)... I like it pretty straight fwd. Pay me for what I do, happy to move on if you dont need me. I dont want someone breathing down my neck all the time and I hate appraisals. So on the whole, I think I am a 'contractor' at mind. Having said that, I am fairly new to business. Just 10 months old .I am approaching my possible void period. So, I dont know if I'll feel the same if I am sitting idle for 3 months!

On the other side, my husband is a hardcore permie. He can never handle the stress of 'job search' every 6 months and possible voids. Does your wife/Gf have a perm job that pays well? In that case, I'd think you have a good cushion - you can take some risks!

Btw, I am 28 too!

My to-be-wife is a hardcore permie on okayish salary. My lifestyle is not flamboyant but I am yet to buy a house. In a Perm role, I think that will be impossible. But that's the sacrifice, I will need to make to move up the org. chart (fingers crossed). The very thought of moving from £500 a day to about £4000 a month scares me!

[simplicity]

My to-be-wife is a hardcore permie on okayish salary. My lifestyle is not flamboyant but I am yet to buy a house. In a Perm role, I think that will be impossible. But that's the sacrifice, I will need to make to move up the org. chart (fingers crossed). The very thought of moving from £500 a day to about £4000 a month scares me!

Firstly, Well done!

Secondly, For us who are aspiring to that rate i would find it helpful to know what experience and qualifications you have -prince2. MSP etc??

[MrRobin]

The very thought of moving from £500 a day to about £4000 a month scares me!

Well that doesn't make any sense... you are quoting pre tax figure for the contract rate and net of tax for the perm rate...

£4,000 a month is hardly destitute! You say you don't have a flamboyant lifestyle but are worried £4k won't be enough?