Equivalent Day Rate

[edison]

Most people on here can use IT job boards like Jobserve to benchmark their skill set, you probably need to do the same.

Where do contract engineering jobs get advertised? Have you looked in these places to see the typical day rates for your field? I'm guessing at £90k salary you must be very experienced/some sort of senior manager? Have you got friends/ex-colleagues who contract and have you tried asking them? Or even current contractors where you work now (if there are any.)

[edison]

All very good working out equivalent rate per annum but how many days do you realistically expect to work per annum as a contractor? I would be working on a 10 month year to be on the safe side. Anything above that is a bonus.

Also remember you have zero benefits. What are they worth to you? If you had the added flexibility would you like to take more holidays? Are you the sick type so will have sick days off yadda yadda. Need to take these in to account as well.

I think swapping to contracting based on equivalent rate only is a mistake. I would also be wondering why you are wanting to ditch a 100k package to go contracting. Switching for a 40k IT role for 400-500 a day I get. 90k? Not so sure about that.

What are the reasons you want to go contracting above and beyond the income?

I know almost nothing about engineering contracting but at £90k salary the OP must be senior in his field and have a very substantial skill set and experience that may well be in demand and command a good day rate.

As has been pointed out, a six figure package doesn't really equate to a £500 day rate. However, I wouldn't be put off going contracting just because you have a high salary today, so long as you do find out what the market rate is. There are are enough senior level IT contractors out there who are on say £600-800+ a day instead of six figure salaries that prove the point. A friend of mine has recently quit a £120k salary job to go contracting.

Last year I gave up a perm job on a package a bit higher than yours to go contracting. My main motivation wasn't financial but rather I had had enough of the corporate ladder and thought I wasn't going to go any further in the previous two permie roles. For me it's been more of a lifestyle decision in that I feel far less stressed now that I am not part of some corporate behemoth with all the crap that goes with it. Significantly, my wife has actively encouraged me to go contracting a few times in the last 3-4 years and now that I have made the move, she reckons it's been much better for me.

I also think having the right contractor mindset is important. I had 10 perm jobs prior to contracting and also worked for about 15 client companies as a consultant so changing jobs and working in new places is second nature for me. Some of my contractor friends have joked that I was a contractor in all but name...

[ITPRO2]

I know almost nothing about engineering contracting but at £90k salary the OP must be senior in his field and have a very substantial skill set and experience that may well be in demand and command a good day rate.

As has been pointed out, a six figure package doesn't really equate to a £500 day rate. However, I wouldn't be put off going contracting just because you have a high salary today, so long as you do find out what the market rate is. There are are enough senior level IT contractors out there who are on say £600-800+ a day instead of six figure salaries that prove the point. A friend of mine has recently quit a £120k salary job to go contracting.

Last year I gave up a perm job on a package a bit higher than yours to go contracting. My main motivation wasn't financial but rather I had had enough of the corporate ladder and thought I wasn't going to go any further in the previous two permie roles. For me it's been more of a lifestyle decision in that I feel far less stressed now that I am not part of some corporate behemoth with all the crap that goes with it. Significantly, my wife has actively encouraged me to go contracting a few times in the last 3-4 years and now that I have made the move, she reckons it's been much better for me.

I also think having the right contractor mindset is important. I had 10 perm jobs prior to contracting and also worked for about 15 client companies as a consultant so changing jobs and working in new places is second nature for me. Some of my contractor friends have joked that I was a contractor in all but name...

I assume the OP is in oil and gas to be earning that kind of package. However, its not stellar and is about the going rate for someone in their early 30s.

I would just give contracting a go. If it doesn't work out, you could walk back into a permie job very easily with the market being what it is right now. Worst case scenario, go to Aberdeen for a few months, as there has never been a shortage of work there.

[SpontaneousOrder]

I assume the OP is in oil and gas to be earning that kind of package. However, its not stellar and is about the going rate for someone in their early 30s.

I would just give contracting a go. If it doesn't work out, you could walk back into a permie job very easily with the market being what it is right now. Worst case scenario, go to Aberdeen for a few months, as there has never been a shortage of work there.

People get remunerated according to their age?

[ITPRO2]

People get remunerated according to their age?

The vast majority of engineers are degree qualified. Assuming full time work from graduation, early 30s implies ~10 years experience. This tends to be what counts when setting rates/salary levels.

[psychocandy]

red dragon - good salary for cymru matey.....

[MyUserName]

I assume the OP is in oil and gas to be earning that kind of package. However, its not stellar and is about the going rate for someone in their early 30s.

Seriously?!?!? I am in the wrong industry!!!

[SpontaneousOrder]

The vast majority of engineers are degree qualified. Assuming full time work from graduation, early 30s implies ~10 years experience. This tends to be what counts when setting rates/salary levels.

I can't remember why I questioned your reasoning. It sounds fair enough to me

[vwdan]

Seriously?!?!? I am in the wrong industry!!!

No kidding!

[BlasterBates]

Agree with above, I see no financial reason to go contracting, 114 K is a damn good salary.

When you're contracting you usually have to travel, unless you want to live in your car I would be budgeting 1.5 - 2 grand a month.

If you have a premie job where you can live around the corner, I would stay where you are.

Even if you are travelling as a permie, travel expenses usually boost your income so you need to add this on, and normally you can stay in a nice hotel, as a contractor they come off your day rate.

I had a quick look on jobserve which confirmed my suspicions, the only place you can earn is Scotland on oil and gas, and the rates are 450-550, on a salary 114K I would say not worth it. Once you're out of Oil and Gas field, pay is abysmal, so you want to hang in there.