Leaving a secure job for a contract position?

Wile E. Coyote

As the question asks - would you leave a secure permanent job for a 1 year contract? Or how much would of an increase would it take for you to consider taking the risk?

_Kaiser_

Wile E. Coyote wrote: »

As the question asks - would you leave a secure permanent job for a 1 year contract? Or how much would of an increase would it take for you to consider taking the risk?

For me it would never be an option, but then I'm almost 40, have debts and responsibilities, and have always been a PAYE wage slave. I've also stayed with every place I worked for several years (and progressed up while I was there).
For me now though the main thing is stability and a dependable wage.

I guess if I was younger with just myself to support and the contract was in something I wanted to get into, or I hated the job I was doing now I might consider it though, but the money would have to be a fair bit more than I was making now to compensate for the security, pension/health cover etc.

Wile E. Coyote

_Kaiser_ wrote: »

For me it would never be an option, but then I'm almost 40, have debts and responsibilities, and have always been a PAYE wage slave. I've also stayed with every place I worked for several years (and progressed up while I was there).
For me now though the main thing is stability and a dependable wage.

I guess if I was younger with just myself to support and the contract was in something I wanted to get into, or I hated the job I was doing now I might consider it though, but the money would have to be a fair bit more than I was making now to compensate for the security, pension/health cover etc.

I would have been under the same opinion but just happened to be looking through one of the recruitment sites today and came across the same role I currently have but as a 1year contract 'with view to permanent'. The thing that struck me though was its a 75% increase on what I currently earn. And I'm on a fairly decent wage so it just got me thinking.

NotaSheep

I think this would make me sufficiently interested to get myself an interview and see if it is what I think it is in relation to all other aspects of the job (working hours, location, responsibilities, travel involved etc)...... And you don't really have to make a decision until somebody offers you the job!

_Kaiser_

NotaSheep wrote: »

I think this would make me sufficiently interested to get myself an interview and see if it is what I think it is in relation to all other aspects of the job (working hours, location, responsibilities, travel involved etc)...... And you don't really have to make a decision until somebody offers you the job!

+1

The benefit you have here OP is that you're not under any pressure to find a new job so no harm going and seeing what they have to say and then decide if it's worth pursuing further.

The 75% wage increase is a big difference though.. This being the time of year for performance reviews, then depending on how things are in your current company, maybe there's scope to look for a modest increase as well? - especially if a higher wage is the norm for your role elsewhere...

Manach

Go for it. Even if it is not made permanent you've gained experience and laid down a wage benchmark for future negotiations in other jobs.

Elessar

I plan to do just that. I know a few guys in their mid 20's contracting and they are on big money. My workplace can't keep them, despite repeatedly offering permanency. It's my ultimate goal to go contracting and enjoy the freedom and money it provides, over the next few years. It's not uncommon to earn 6 figures as a senior person in my field, contracting.

As you said yourself the money is a big increase, I say go for it!

Jim2007

Wile E. Coyote wrote: »

As the question asks - would you leave a secure permanent job for a 1 year contract? Or how much would of an increase would it take for you to consider taking the risk?

Yes in a heart beat! But then I've never held a secure permanent position in my live and I'm in my mid fifties now! I've always worked freelance, so it feels normal for me. But it is not for everyone, some people feel uncomfortable about not know what comes next, where will you find the next gigi or the next pay cheque and so on.

Gael23

I wouldn't take the risk. In fact I would take a cut in salary to move from a contract to permanent role.
Everyones circumstances and aspirations are different but for me security would be quite important.

Jim2007

ryanf1 wrote: »

I wouldn't take the risk. In fact I would take a cut in salary to move from a contract to permanent role.
Everyones circumstances and aspirations are different but for me security would be quite important.

Apart from the civil service, are there really any secure IT jobs??? We used to think IT jobs in Swiss banks were secure, boy were we wrong!

moc moc a moc

I'd have to be making minimum 50% more on the contract job to consider it, to cover the possibility of not finding new work for a few months after the contract ended (and to put a bit away for unforseen circumstances).

Gael23

Jim2007 wrote: »

Apart from the civil service, are there really any secure IT jobs??? We used to think IT jobs in Swiss banks were secure, boy were we wrong!

Maybe there aren't but if I was fortunate enough to be in one, it would have to be one hell of a package for me to give it up.

Mrs OBumble

moc moc a moc wrote: »

I'd have to be making minimum 50% more on the contract job to consider it, to cover the possibility of not finding new work for a few months after the contract ended (and to put a bit away for unforseen circumstances).

Personally I'd be looking for closer to 100% more, on an hourly basis. (ie take your annual salary and divide by 2000 to get your hourly rate)

Why:

Employer PRSI, approx 10%
Annual leave equivalent 8%
Training - harder to call, lets say 5%
Public holiday equivalent - lets say 4%
Sick leave - lets say 2%
Professional indemnity insurance - don't know the %

and then there's the risk of having a contract terminated early, or having months between contracts.

Stheno

Mrs OBumble wrote: »

Personally I'd be looking for closer to 100% more, on an hourly basis. (ie take your annual salary and divide by 2000 to get your hourly rate)

Why:

Employer PRSI, approx 10%
Annual leave equivalent 8%
Training - harder to call, lets say 5%
Public holiday equivalent - lets say 4%
Sick leave - lets say 2%
Professional indemnity insurance - don't know the %

and then there's the risk of having a contract terminated early, or having months between contracts.

I do similar and look for the difference to be at least 75%+ for any contracts I take on.

Generally that works for me. However it works out as not being 100% difference in gross pay, which people need to understand, it could end up being 50% more gross pay as you are factoring in all the costs to employers

323

Everyone's circumstances are different. But I would also say, Go for it. Well over 10 years and have not looked back.
Depends on how confident you are in your ability. Even in my industry downturns I've stayed more than busy enough to get by on the bad years. When companies lay off folks they tend to need contractors more than ever, to staff projects.

In any technology business, what is secure nowadays? Company I left, would have sworn my position was a secure as public service. Year after I left the parent company announced they were getting out of that sector, sold all to a competitor. Who laid off >80% immediately. I had a year head start and good contacts.

Mr. Loverman

You haven't given us enough information to give you advice for your specific situation.

For example, if you are a software engineer, with a good education and a lot of experience, in a job you are considering leaving anyway, I would say go for it.

ronjo

I did it 12 years ago.

Actually stayed in same role but just as a contractor instead of of a permanent employee placed in a bank.
I was working for software company who told the bank I would not be able to stay there full time so we organised it behind my companies back.
Got an increase of about 150% so I was absolutely delighted.

yop

Did it nearly 5 years ago and the experience and bank balance are much better for doing it. Built up a great network of business contacts and in the IT sector your not out of contracts for long if not at all.

Ray Palmer

Been contracted for years and you can walk from contract to contract. Security in the IT field doesn't exist from what I have experienced. I personally feel people overrate their job security in most permanent position. I have seen loads of people lose their jobs out of the blue.
Then there is actually the insecure feeling when you know the company are in some trouble. Contracting can be very relaxing as you aren't tied to the company.