Fixed Term Contract vs Daily Rate - cost/benefit advice?

[Barley]

Hi, looking for some advice/support.

Recently started at a small financial company on a daily rate.

Client is looking to recruit the remaining team (analysts) on fixed term basis. Part of my consultancy role is to support the recruitment process filter CVs, interview candidates etc.

I initially had reservations about quality of candidates that relatively low fixed terms rates would attract, quite frankly im surprised, many share a lot of my skills.

The elephant in the room here is that if the process is successful, I will not get a renewal but instead be offered a fixed term contract at far lower than I successfully market myself for.

Questions..

1) Why is it that analysts will pitch for circa 30k jobs when they match the skillset for £300-£350pd rate?
2) How can I protect my position without being or seeming to be biased?
3) Anyone else come across this situation, does this model have the potential to impact the market?

Are these assumptions correct

£350pd contractor x 220 days = £66000, + 20% agency fee and 20% VAT = Annualised client cost = £90k approx?
£30k fixed term contract = £30k + Employer NI & other benefits (5k?) and 20% agency fee = £42k approx?

[SueEllen]

Some people are very good a writing CVs but can't do the job.

Some people have personal reasons to have a fixed term contract rather than go contracting.

I suggest you make sure the interviews are sufficiently hard without being idiotic to filter most of the candidates out for the above reasons.

[northernladuk]

First off you need to do a search on here for FTC's. We had a thread only in the last few weeks where someone tried to discuss the comparison between FTC's and the LTD type contracts and was shot down. There is no comparison. FTC is a contract of employment with all the rights. There is a link in the thread I am thinking of that explain this.

If the client wants FTC he just needs bodies on the floor not contractors. I would worry that the role you are doing is seen as a permie role if he think he needs to change it so you could be at very high risk of being inside IR35.

If he wants FTC and you are contract I would say you are going to be lucky to carry on as you are so it's decision time... oh and time to look back at your working practices and hope you have enough evidence to be outside. The client clearly doesn't agree so may stand up and shaft you if it came to a tribunal.

Ok here is the search link for lots of discussions on FTC...

https://www.google.co.uk/search?q=FT...ntractoruk.com

and one for Fixed term contract

https://www.google.co.uk/search?q=FT...ntractoruk.com

[Barley]

Thanks for the responses so far, ive been in the game long enough to be comfortable im outside IR35.

As I explained in the other thread just now, FTC is a non starter for me as ill be buying a house in the next year or two and value 3 years+ accounts. I manage to transition between contracts pretty well so have no worries remarking myself when the current contract ends.

Id rather not though as its a decent place to work, ticks all the boxes if I can manage to persuade them to retain me on daily rate. Fear it'll be like pushing water up hill though as im potentially 2x the financial cost of a FTC.

Just need to prepare lots of good reasons im the best fit for the role and why im worth the money. Maybe I should recruit the worst FTCers as an example (thats a joke).

[DirtyDog]

Questions..

1) Why is it that analysts will pitch for circa 30k jobs when they match the skillset for £300-£350pd rate?
2) How can I protect my position without being or seeming to be biased?
3) Anyone else come across this situation, does this model have the potential to impact the market?

1 - maybe they don't realise that they can? Some people see an FTC as being more secure than a contract, and some won't want the "hassle" of running their own business. Perhaps they need to be in work for a few months and think this is the best way to guarantee it.

2 - You can't. Make yourself look good and them look bad if you are that worried about it.

3 - no.

The elephant in the room here is that if the process is successful, I will not get a renewal but instead be offered a fixed term contract at far lower than I successfully market myself for.

If you can successfully market yourself out at the higher rate, then why worry what this client does?

[malvolio]

Cost of a contractor = No. of days worked x Agency Charge rate per day

Cost of a permie = (Gross Salary + 13.8% ErNICs + 15% management overheads + 10% pension contribution + 10% training contribution) + ( the same rate again pro rata for n weeks to cover their notice period which is payable regardless of how quickly they go out of the door) * 120% because a permie is only ever 80% efficient, the rest being taken up with team meeting, career progression and other non-productive work.

HTH....