FTC to Contractor

[Bibi]

Hi guys,

I'm trying to get into contracting but seem to be hitting a dead-end thus far (it's only been a week and a half but anyway...).

Bit of background - over the last couple of years I've been on FTC employment, my last one ended back in June. Since May, I sent my work permit through for renewal but unfortunately the process took far longer than usual and I only just received my renewal literally last week.

I realise that gaps in employment aren't an issue when you're seeking a contract but my questions are:

- Should I be clear with agents and tell them that my previous job was an FTC and so I was paid on a PAYE basis or should I just answer yes my last job was a contract (which it technically was)?
- If I do let them know that I was an FTC would doing so affect my chances in securing a contract?
- Would it affect my rate?
- The current climate seems a little slow, especially within finance, would I be better off going permanent (which I really really really REALLY hate the mere idea of) then go contracting when things pick up a little or should I soldier on?

Also, with regards to securing a contract, have you found that uploading a CV on an agency site followed by a cold call for any opportunities to be a good tactic/necessary for securing a contract?

Thanks.

[Scrag Meister]

<NLUK/>

You are worried and asking about going perm after a week and a half.

AYSYACOTBAC

</NLUK>

Try a little harder, give it a month or 2 if you have the warchest to handle it.

[Bibi]

<NLUK/>

You are worried and asking about going perm after a week and a half.

AYSYACOTBAC

</NLUK>

Try a little harder, give it a month or 2 if you have the warchest to handle it.

That was a thought and not the main point of my post.

The main concern for me is should I be upfront about having been on an FTC and the potential affects that would have on securing a contract as well as my rate.

[captainham]

That was a thought and not the main point of my post.

The main concern for me is should I be upfront about having been on an FTC and the potential affects that would have on securing a contract as well as my rate.

When I was in a similar boat, I didn't lie to any agents, but equally I didn't freely offer the info that I was moving from perm to contract.

I agree that for the most part it shouldn't matter, but the fact remains that being a contractor does require a different mindset to a permie, and many clients/agents can be a bit wary of a newbie contractor for that reason. Hence why I wouldn't offer it freely.

I think I was asked several times "When did your last contract end" to which I replied "My last assignment finished x weeks ago". Pointless really, but only if they specifically asked if it was a perm role did I confirm this.


As it turns out, my current agent knows I'm a newbie (although not the client as they weren't interested) and I know I'm being screwed on the rate, but then a contract is a contract and I wasn't forced to accept it, so that's my learning curve.

[northernladuk]

That was a thought and not the main point of my post.

The main concern for me is should I be upfront about having been on an FTC and the potential affects that would have on securing a contract as well as my rate.

Yes you should. Being new to contracting you are a risk to a client as it is. You still have a perm attitude, you may not be able to cut it, you can't deliver from day one, you may still be mercenary and give backword as it suits you, you may not like the travel and so on.... With all these stacked against you IMO the last thing you want to do is start being devious so proving a new contractor is a waste of time.

If you get a role in a bank or any other financial organisation they will do a pretty stringent credit check on you and any little cover ups will come out in the wash and you WILL get walked. I have seen it a few times first hand, particularly with people extending contracts to hide breaks. If you get a gig handling sensitive data you may need extra checks and if your linked in doesn't match your CV you will also get caught out. The last thing you want in your first contract is to get walked before you finish.

As mentioned before I don't think you need to put it in bold red writing in your CV but I certainly don't think you should attempt to make out it was something it wasn't. Don't give everything away and be honest when they ask but don't give them more than they need to know to start off with.

[Bibi]

Cool, thanks captainham & northernladuk.

With regards the rate, I've had a couple of agents ask what rate I'm looking for, I've given a range and said it would depend on the specifics of the role. Is that a wise move as a newbie? I'm reluctant to have them evaluate my rate for me for obvious reasons but I can see the whole argument on their end being well you're new to contracting therefore you're worth x (x < real worth).

Any suggestions on how to deal with this?

Cheers.

[malvolio]

Cool, thanks captainham & northernladuk.

With regards the rate, I've had a couple of agents ask what rate I'm looking for, I've given a range and said it would depend on the specifics of the role. Is that a wise move as a newbie? I'm reluctant to have them evaluate my rate for me for obvious reasons but I can see the whole argument on their end being well you're new to contracting therefore you're worth x (x < real worth).

Any suggestions on how to deal with this?

Cheers.

Four standard methods:

Rule of thumb method - last salary / 1000 = hourly rate.

Statistical method - Jobserve similar roles in similar locations, average the rates offerred, take off 10% newbie discount

Optimisitic method - find the Jobstats website and use their number

Calculated method - (((What you need to live on net * 1.30 PAYE/NICs) + (what it costs you to get to work each day)) * 1.2 CT ) then add 30% markup.

Or do all four and take the mean...

This is the only market where you have to set the price without knowing the requirement. When you're really good you can get away with telling them what you'll work for, but you aren't there yet.

[northernladuk]

Cool, thanks captainham & northernladuk.

With regards the rate, I've had a couple of agents ask what rate I'm looking for, I've given a range and said it would depend on the specifics of the role. Is that a wise move as a newbie? I'm reluctant to have them evaluate my rate for me for obvious reasons but I can see the whole argument on their end being well you're new to contracting therefore you're worth x (x < real worth).

Any suggestions on how to deal with this?

Cheers.

Erm, well not sure about the specifics of the role. As a contractor you are taken on to do a specific task so you should have a pretty specific skill set. Clients don't take on all rounders or good people that can learn like permie land. You have to hit the ground running. This means you will only go for roles that you can do and demostrate you are skilled at. That means the specifics of the roles I go for tend me be much the same so I know the rough area of rate to go for. I know what is low and what is high. They will advertise a rate, and you just decide if you like it or not. You can try negotiate it up if you are a dead match for the role but being a newbie I don't think you have that much leverage. Look for the roles, check the rate, if you are happy go for it. TBH I would take more or less anything for my first gig if the skills are very good and will look good on your CV for future work.

The rates tend be advertised so will be same for experienced or new guys. Difference is experienced guys know the tricks they pull to reduce it by £50 or whatever when it comes to signing.

[captainham]

Erm, well not sure about the specifics of the role. As a contractor you are taken on to do a specific task so you should have a pretty specific skill set. Clients don't take on all rounders or good people that can learn like permie land. You have to hit the ground running. This means you will only go for roles that you can do and demostrate you are skilled at. That means the specifics of the roles I go for tend me be much the same so I know the rough area of rate to go for. I know what is low and what is high. They will advertise a rate, and you just decide if you like it or not. You can try negotiate it up if you are a dead match for the role but being a newbie I don't think you have that much leverage. Look for the roles, check the rate, if you are happy go for it. TBH I would take more or less anything for my first gig if the skills are very good and will look good on your CV for future work.

The rates tend be advertised so will be same for experienced or new guys. Difference is experienced guys know the tricks they pull to reduce it by £50 or whatever when it comes to signing.

WNLS.

Bear in mind the agent still stands to profit from your rate, and they typically only take x% of your rate on top as their fee so they want you to earn as much as possible.

But also as NLUK said, I'm (gut feel) in the region of €50, maybe even €75, less than the others on my gig, purely cos I'm a newb and fresh meat for the grinder. I accept that, it still beats being a permie (and still pays twice as much) so I can deal with that. If there's a prospect of renewal when the time comes, of course, then I'll be playing a slightly different game...but will probably still fall flat on my arse as I'll still be wet behind the ears!

[malvolio]

Bear in mind the agent still stands to profit from your rate, and they typically only take x% of your rate on top as their fee so they want you to earn as much as possible.

Lesson #1 - They do not take a percentage of your fee. You take a percentage of theirs. Don't ever forget that little detail.