Reply to: Next big step in career, advice needed

[perplexed]

I think I am also leaning towards the permie role, sounds like contracting is becoming tougher and tougher.

Contracting is tough. So is permiedom.

Having ended up back in permiedom due to financial problems, it's tough to even pretend to be motivated when faced with project after project in maintenance with old tech. No scope to rewrite things the way they should be.

I'd say if someone has the prospect of contract or permiedom, they shouldn't reject either out of hand. There are positives, there are negatives. Even if the contract only gives you a small amount more than the permie role, as long as it covers the loss or permie benefits then it could well give many advantages. Quite a lot aren't cut out for permiedom. Boredom, complete and utter frustration at being asked to perpetuate historical mistakes et al. Contract is a mindset rather than a pure money grab after all.

[sonicboy]

I think I am also leaning towards the permie role, sounds like contracting is becoming tougher and tougher.

[bobspud]

Having not been a contractor before most of these things will be new to me, although I'm sure I can learn. I do plan to start a family soon, would being a contractor be a bad fit for this? Although I am worried about a period of unemployment I would hope being mortgage free would go some way to ease some of the worry. I was hoping to get as much information as possible because I am genuinely on the fence about the two positions.

The problem with contracting at the moment is there are too many permanent employees that have either been made redundant or have unwittingly jumped into contracting. It has distorted the market rates to breaking point. We are on the cusp of yet another change with the public sector IR35 changes being rolled into the private sector or possibly an even bigger change as result of the Taylor report that was released this year.

It took me 10 years to finally make the move to contracting but in that time as a permanent employee, I never struggled to find good permanent work that offered me good money.

I think you need to take a wider view of your skill set and play some scenarios out.

1) You have been doing development work and been a team lead. What Killer applications have you developed? or more importantly what mind bending technologies have you been responsible for moving your teams into? If the answer is none really, then you don't really have a USP that will stand you out from the other 100 applicants that are likely chasing your second or third role.

2) If I gave you a list of 10 technology jobs could you give me a good understanding of them if I was not a technologist? For instance I think architecture in its current form is due a demise and there will be a wholesale mopping up of the role into some form of developer led agile munge... there are several technologies that have the power to stop digital transformation dead in its tracks can you name any of them?

3) Can you point to any economic data that makes you think an unbroken work pipeline for the next 3 years is likely?
So with that in mind I would not take a contract that did not provide me with enough margin to build a 12 month bench and sickness find. Incidentally 450 a day is not a good rate. Its the sort of crap that agents feed newbies like you to depress the market. £650 - 800 that is where you should aiming because that is where you will have enough cash to earn money and build a war chest that will hold you in good stead for the coming uncertainty.

The one thing that I can say is weakest about contracting at the moment, is that we have no sales pipeline that works for us. Frankly the recruitment industry is now so broken it won't take much for a chap with commodity skills to get lost in a sea of poor CV's that just have better word optimisation. Agents are no longer bothered that they lost the best CV at the bottom of the pile the 3 crap ones will do.

Right now I would be looking to stay in the permanent game and move up in that area to a point where you are leading sales bids or doing something that will gain you some serious contact with the budget holders once you have a relationship with a dozen or more of them you have the basis for a self funding sales cycle that takes you out of the mess that is currently contracting.

[HugeWhale]

If you're thinking about starting a family soon, then you need to park your career for a couple of years. Consolidate. Batten down the hatches. Submarine tactics - run silent, run deep.
You don't need any more grief in your life when you first become a parent.

[pr1]

In all honesty, I think anyone going contracting now is going to be in for a massive disappointment. Dividend tax after the first £2500 from next year

you're in for another slight disappointment... it's £2000

https://www.gov.uk/government/public...and-allowances

[washed up contractor]

In all honesty, I think anyone going contracting now is going to be in for a massive disappointment. Dividend tax after the first £2500 from next year, the looming public sector IR35 'interpretation' being implemented in the private sector sooner or later.

Sure you may be on £450 a day for 6 months or even longer but many new contractors tend to 'live up' to their new income rather than salt it away for the inevitable rainy day. And if you havedone this, you'll quickly find it is not so easy to bring the spending into line.

[MrButton]

Your numbers are broadly right. Well you’ll get 4.5k pm on the permie one plus your bonus and pension. You can get more than 5.5k depending on if you can share split etc.

So many variables tbh.

[sonicboy]

If OP doesn't take much time off during his 6 month tenure there at £450 a day, i'm fairly certain he'll be in a financial position where he is comfy enough for a few weeks out of contract looking for another role, of whatever sort...

OP try it - it sounds like you're in the perfect situation to give it a go and you may kick yourself later in life if you don't.

Looking at a contract calculator the net take home monthly pay is £5500, does this sound about right?

The reason I ask is because the permie role take home is around £4800 (including pension), which does not seem too far off the contract take home.

[mattfx]

+1

If you're worried about that, you'll poop your pants at bench time with no redundancy cheque to tide you over.

If OP doesn't take much time off during his 6 month tenure there at £450 a day, i'm fairly certain he'll be in a financial position where he is comfy enough for a few weeks out of contract looking for another role, of whatever sort...

OP try it - it sounds like you're in the perfect situation to give it a go and you may kick yourself later in life if you don't.

[LondonManc]

This concern alone is reason enough for you to take the permanent position.

+1

If you're worried about that, you'll poop your pants at bench time with no redundancy cheque to tide you over.

[sonicboy]

Thanks for the advice everyone, going by the answers, it's like I thought and there is no clear winner. I have a few more things to think about at least.

[BrilloPad]

That's going in the tank to come out another day! Great quote

Come in the tank? Is this post 2019?

[eek]

I've never subscribed to the theory that you cannot progress your career via contracting - in many ways its easier as you switch roles all every year or so.

The issue, however, with contracting is that there is often a trade off between commute distance, income and bench time. Be prepared to accept a longer commute (even away from home) to avoid a low paid contract or time not working...

[mattfx]

The water has been peed in by HMRC and the beer is taxable. However, there's a pina colada or two to be had if you keep your wits about you.

That's going in the tank to come out another day! Great quote

[mattfx]

Personally if I were you i'd Take the contract and go umbrella; Work your balls off for 6 months and don't take any time off. After 6 months you will know if it's "for you" or not. Then if you decide to stay in the contract market you can start your own ltd. and continue to contract or, if not, you can go back to the perm market.

That's what i'd do, anyway.