Reply to: From Perm annual compensation to Daily Contract rate

[TheFaQQer]

Would you leave a £750 day contract for a perm job as a VP paying 100k basic plus bonus / benefits?

Yes. Where do I sign?

[MyUserName]

Hi,

Im a Permenant employee planning to move into contracting. I also have an offer.

However, I would like to know if there is any formula to find the contract rate equivalent of my Perm Annual compensation.

For e.g.

Perm Total Compensation --> Contract Rate
£80,000 = ??
£90,000 = ??
£100,000 = ??
£120,000 = ??

Thanks

You are not comparing the correct criteria.

You only get the contract rate when you are in a contract. You can only assume you get this rate for this contract (possibly not even that long). Your next contract might be further away, on a lower rate, or not come along for months.

Whereas, generally, you get paid your perm salary every month.

If you are contracting you, personally, will need to make sure that your skills stay relevant for the future and that you continually fight for your share of the pie in an increasingly flooded market.

What happens if you have a car crash and broke your arm? Most contract positions will terminate your contract and get someone else. Can you afford that?
Can you afford (in terms of money and stress) to be out of work for several months?
How much of your life is built around your routine? Do you need to leave for work after a certain time, arrive back by a certain time etc.? Even if this contract allows for it future ones might not.

Why should someone hire you for your second contract if there are dozens of experienced contractors out there competing with you?

Do not just compare day rate to salary - it is not that simple.

[SueEllen]

On my first contract ever they asked me to go perm however the 35k offer was laughed at and dismissed. They then offered an extension which was different to what was discussed so i buggered of elsewhere for more money and less comedy

Mine have never been on contracts.

I make it very clear I'm only there to work.

[Mincepie]

I've had some decent permie offers but when I've talked to the other staff they are all miserable f*****

On my first contract ever they asked me to go perm however the 35k offer was laughed at and dismissed. They then offered an extension which was different to what was discussed so i buggered of elsewhere for more money and less comedy

[SueEllen]

I am a bit behind you on the day rate but i dont think i would switch to a perm role for a 100k but it wouldnt take too much more

I've had some decent permie offers but when I've talked to the other staff they are all miserable f*****

[Mincepie]

Would you leave a £750 day contract for a perm job as a VP paying 100k basic plus bonus / benefits?

I am a bit behind you on the day rate but i dont think i would switch to a perm role for a 100k but it wouldnt take too much more

[LondonManc]

Is the company a multi-national?

Given that we aren't posting in the HMRC Schemes section, no comment.

[SueEllen]

I'm on the board of my limited company

HTHBIDI

Is the company a multi-national?

[LondonManc]

I've actually had a couple of PMs who went permanent due to that. Both since has been promoted to a higher roles.

If you are intent on getting into a board level position somewhere then take the permie role and network like mad.

If you are happy as you are then don't.

I'm on the board of my limited company

HTHBIDI

[SueEllen]

It's not a made up situation - it's my situation and decision to make.

I have actually made my decision but was just throwing it out there for fun to hear other views.

I'll continue to drip feed info in a suityesque fashion if it helps

I've actually had a couple of PMs who went permanent due to that. Both since has been promoted to a higher roles.

If you are intent on getting into a board level position somewhere then take the permie role and network like mad.

If you are happy as you are then don't.

[northernladuk]

It's not a made up situation - it's my situation and decision to make.

I have actually made my decision but was just throwing it out there for fun to hear other views.

I'll continue to drip feed info in a suityesque fashion if it helps

Oh right. In that case then Yes!

[oracleslave]

That's even worse..... These made up situations are useless. I'm not sure what you are trying to achieve.. Remember we are assuming the arse is going to fall out of the contracting world in Apr17 as well. It's not a straight rate vs role here.

It's not a made up situation - it's my situation and decision to make.

I have actually made my decision but was just throwing it out there for fun to hear other views.

I'll continue to drip feed info in a suityesque fashion if it helps

[northernladuk]

I wasn't but let's for arguments sake say the contract role was a Senior Project Manager role and the permie role is VP of delivery

That's even worse..... These made up situations are useless. I'm not sure what you are trying to achieve.. Remember we are assuming the arse is going to fall out of the contracting world in Apr17 as well. It's not a straight rate vs role here.

[oracleslave]

You are presuming the contract role is exactly the same as the VP role.

I wasn't but let's for arguments sake say the contract role was a Senior Project Manager role and the permie role is VP of delivery

[northernladuk]

Would you leave a £750 day contract for a perm job as a VP paying 100k basic plus bonus / benefits?

I don't normally command rates anything like that near home so it's a bit of a hypothetical question.