Reply to: Contract To Permy Salary

[FarmerPalmer]

I went Perm to Contract 9 years ago it was £28ph to £36k
Coming back the other way 18 months ago it was £46k to £36ph

[The Coal Man]

WHS. I went permie in Jan. Managed to get better than 1000 * hourly rate on the salary plus usual benefits so although I'm earning less than I was I'm still effectivly within the range I would have considered for a contract day rate.

My personal view is that the market is going to be tuliped for 18 months or so, so I'm keeping my head down in what I'm treating as an 18 month IR35 caught contract.

When the market picks up again next year I'll look to jump back to contracting again.

I've just done the same, gone back to permy work after best part of 3 years contracting. Started off at this place in the first 3 weeks as a contractor and then they offered me a full time permy salary as they needed someone there permanently not on a contract basis.

I took it for the exact same reasons as above plus its a doddle to get to and from work and the 1000 * hourly rate ratio matches what my last hourly rate was, hols and other perks are fine, so I'm OK with it.

Can not see things getting much better for at least 12-18 months or so in the current climate, and got fed up being on the bench even though I did a couple of training courses and also read loads and loads of posts on here and elsewhere "that come the spring / autumn (delete as appropriate) it will pick up again" could'nt see it myself as I remember the downturn after Y2k.

Another question though, as I am back in permy work, I was thinking of ditching my accountants as salary/NI/PAYE etc will all be done with the company I am now working for, and possibly winding my company down or at least end the agreement with the accountants and just keep the company name as there is always the possibility that I might go back to contracting in the future, is this the right thing to do, anyone been in the same position?

Cheers.

[the_duderama]

IMHO permie job security is pretty much non-existent these days, and don't expect more than the square root of bugger-all in redundancy unless you have been employed for at least 2 years...

It's 1 year now, has been for a while, but then all they have to give you legally is 90 days notice and 1 weeks pay for every year worked (more if your older, like 2 weeks i think).

[arty]

IMHO permie job security is pretty much non-existent these days, and don't expect more than the square root of bugger-all in redundancy unless you have been employed for at least 2 years...

[AlfredJPruffock]

the other 60 days go to, take your pick
1. Job Security
2. Be 'sick' whenever you want
3. Other Benefits

Be sick whenerver you want ?

Not true - I worked as a so called perm - or should I say 'contract of unspecified duration' - HR was forever pulling up staff who called in 'sick' they gave verbald and written warnings for anybody with over 5 days sicks per year withoug Doctor Notes - the days of not turning up because you cant face a day at the office - are being closed down by HR.

Thank goodness if I now fail to turn up for work - I tdont get paid - so in the past year Ive had - half a day off work through illness.

[ASB]

Here's a thought - you could charge a contractor rate and buy medical insurance, pensions and pay for days off sick.

If you wouldn't consider doing that with your own money then I'd question the value of having it deducted at source by someone else.

As a general principle that probably right, though in my case not. Of course this is only due to my particular circumstances.

[Shimano105]

Here's a thought - you could charge a contractor rate and buy medical insurance, pensions and pay for days off sick.

If you wouldn't consider doing that with your own money then I'd question the value of having it deducted at source by someone else.

[facboy]

the other 60 days go to, take your pick
1. Job Security
2. Be 'sick' whenever you want
3. Other Benefits

okie...so you're trading in cash for intangibles, more or less. in straight money terms, you're much worse off?

[ASB]

- you need to be sick a lot of times to benefit from the sick pay.

- you will need to be sick enough to claim on your medical insurance for that to be worth anything.

Oddly I went per,y about the same time as I was diagnosed with a chronic neurological condition and the insurers agreed to cover preexiting conditions. Wonder how that happened.....

[Shimano105]

But beware:

If you are treating it as a long-term contract:

- the pension contribution, however generous, will be worthless.

- you need to be sick a lot of times to benefit from the sick pay.

- you will need to be sick enough to claim on your medical insurance for that to be worth anything.

In other words, you are after the cash and not the 'benefits'

[AnthonyQuinn]

can i be really naive here and ask where the 160 * daily/1000 * hourly figures come from?

if i were to be fairly slack (for me), and work 44 weeks in the year, that still comes to 44 * 5 = 220 days. The 8 weeks is say, 5 weeks of holidays and 3 weeks of bank holidays/being sick/arsing about.

so where do the other 60 days (12 weeks!) go? is it to account for time between gigs?

or is it just a reflection of what you can expect to get? 'cos naively, it seems like a lot less money - are benefits really worth that much?

the other 60 days go to, take your pick
1. Job Security
2. Be 'sick' whenever you want
3. Other Benefits

[AnthonyQuinn]

Usual question, been asked to go contract to perm and have been asked what my salary expectations are and to justify it.

I really don't know how to price myself, I'm not going to take a market rate salary as I don't really want permy and the salary needs to reflect this. I know they need me more than I need them as I could pick up another contract quiet easily, but on the flip side I do like it here. What have others done in the same situation, ask for a salary that would pay the same net as you recieved contracting or lower ?

Cheers

You have two options.
1. Say that you are not interested in permie
2. Ask for a salary that is market + MAX 20%

If they need you more than you need them (which in my opinion is NEVER true in today's market) and you can pick up anoter contract easily, then go for option 1. Why are you even considering their offer? Asking for the same 'net' is a waste of time and does you no favours.

[facboy]

can i be really naive here and ask where the 160 * daily/1000 * hourly figures come from?

if i were to be fairly slack (for me), and work 44 weeks in the year, that still comes to 44 * 5 = 220 days. The 8 weeks is say, 5 weeks of holidays and 3 weeks of bank holidays/being sick/arsing about.

so where do the other 60 days (12 weeks!) go? is it to account for time between gigs?

or is it just a reflection of what you can expect to get? 'cos naively, it seems like a lot less money - are benefits really worth that much?

[DaveB]

Who, me? Nah. I was just positing. If contrract roles dry up for me then I'll go permie and treat it as a job. Contracting for me is about providing for the family in the best way I can rather than a way of life in itself, so a perm role will allow me to continue, albeit in a reduced way, to provide.

F**K it, I'd do bar work to cover the mortgage.

WHS. I went permie in Jan. Managed to get better than 1000 * hourly rate on the salary plus usual benefits so although I'm earning less than I was I'm still effectivly within the range I would have considered for a contract day rate.

My personal view is that the market is going to be tuliped for 18 months or so, so I'm keeping my head down in what I'm treating as an 18 month IR35 caught contract.

When the market picks up again next year I'll look to jump back to contracting again.

I have a family to provide for an a mortgage to pay so I'll do what it takes to keep the money coming in, and this way I dont have to run down the war chest.

[rootsnall]

Who, me? Nah. I was just positing. If contrract roles dry up for me then I'll go permie and treat it as a job. Contracting for me is about providing for the family in the best way I can rather than a way of life in itself, so a perm role will allow me to continue, albeit in a reduced way, to provide.

F**K it, I'd do bar work to cover the mortgage.

I must admit it is easier to have the contractor 'attitude' if you aren't under mortgage pressures.

I'd only go perm for training purposes. I was lucky enough to be contracting in the days of boomed rates and doomed house prices which does allow one to be a bit snotty in these matters.