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Contract expiring - Negotiate new salary?

  • 26-10-2020 3:39pm
    #1
    antimatterx
    Registered Users, Registered Users 2 Posts: 3,005 ✭✭✭antimatterx


    I'm looking for some advice as I'm not really sure what to do.

    I work in tech as a software engineer. I have 2.5 years of experience. I've been working for my company for roughly 18 months at this stage. In June I was told I need to sign a fixed 6 month contract or I'll be let go. I'll still be a PAYE employee, just not on a permanent contract.

    Due to Covid, I though it would be better to have work for the next 6 months, even if it's not secure after that. At the end of November, that contract is up. My manager said months ago that I will be made permanent after this, so I'm going to talk to him next week.

    My salary is only 33K and I'm not happy to continue working with this wage as it's well below market rate. Pay freezes were frozen this year, but I'm the outlier as because I wasn't at the one year, my salary wasn't negotiated for 2020, where as everyone else got a pay rise. I think as I was the only one not to get a pay rise, I should be the exception to the pay freeze.

    If I don't get the money I'm looking for, should I sign this new contract (if I get offered it), and continue working as I'll at least get Decembers salary, where I only have to work 2 weeks, and reevaluate the situation in the new year?

    I'm not really sure what to do.


Comments

  • #2
    Buster97
    Registered Users Posts: 25 ✭Buster97


    antimatterx wrote: »
    I'm looking for some advice as I'm not really sure what to do.

    I work in tech as a software engineer. I have 2.5 years of experience. I've been working for my company for roughly 18 months at this stage. In June I was told I need to sign a fixed 6 month contract or I'll be let go. I'll still be a PAYE employee, just not on a permanent contract.

    Due to Covid, I though it would be better to have work for the next 6 months, even if it's not secure after that. At the end of November, that contract is up. My manager said months ago that I will be made permanent after this, so I'm going to talk to him next week.

    My salary is only 33K and I'm not happy to continue working with this wage as it's well below market rate. Pay freezes were frozen this year, but I'm the outlier as because I wasn't at the one year, my salary wasn't negotiated for 2020, where as everyone else got a pay rise. I think as I was the only one not to get a pay rise, I should be the exception to the pay freeze.

    If I don't get the money I'm looking for, should I sign this new contract (if I get offered it), and continue working as I'll at least get Decembers salary, where I only have to work 2 weeks, and reevaluate the situation in the new year?

    I'm not really sure what to do.

    I think with current climate it would be wise to sign a new contract. I wouldn’t go not signing it as ultimately the salary you aren’t happy with is better than no salary at all for however long it will take to find a new position.

    I think realistically if pay rises are frozen there is probably very little chance they will make an exception for one employee. I do agree with you though if everyone got one already for 2020 it is only fair you should also get one but I just can’t see it being approved; Regardless I wouldn’t go in all guns blazing about it prior to your manager bringing you in to discuss your contract renewal, at the end of the day there is a lot of recent graduates who would probably take a cut on that if they were offered a graduate position within the company; and seeing as they only offered a temporary extension I would imagine your not overly secure in the position you have right now.


  • #3
    Smee_Again
    Registered Users, Registered Users 2 Posts: 2,085 ✭✭✭Smee_Again


    Look around and if you can get a better offer either move or use that offer to leverage a better salary from your current employer.

    As you’re contract and your employer seemed willing to let you go 6 months ago and can let you go with no redundancy you don’t seem to be in that strong a position to negotiate a higher salary without the extra leverage of a competitive offer.


  • #4
    Tristan Gigantic Train
    Posts: 0 ✭✭✭✭ Tristan Gigantic Train


    If it's only 6 months I would sign the contract either way, but start looking around for other opportunities with a cute to having something else when the contract is up.


  • #5
    antimatterx
    Registered Users, Registered Users 2 Posts: 3,005 ✭✭✭antimatterx


    Smee_Again wrote: »
    Look around and if you can get a better offer either move or use that offer to leverage a better salary from your current employer.

    As you’re contract and your employer seemed willing to let you go 6 months ago and can let you go with no redundancy you don’t seem to be in that strong a position to negotiate a higher salary without the extra leverage of a competitive offer.

    I've started to look around last week, and there are some very interesting opportunities out there. I probably won't get hired this side of Christmas though, so it might be worth my while to suck it up, sign the contract and keepsome money coming in.

    Camille Crashing Rebellion wrote: »
    If it's only 6 months I would sign the contract either way, but start looking around for other opportunities with a cute to having something else when the contract is up.

    The new contract would be permanent. But yea I'm only ever a months notice period away from leaving regardless. I think I'll sign in, but big decisions to make.


  • #6
    Smee_Again
    Registered Users, Registered Users 2 Posts: 2,085 ✭✭✭Smee_Again


    antimatterx wrote: »
    I've started to look around last week, and there are some very interesting opportunities out there. I probably won't get hired this side of Christmas though, so it might be worth my while to suck it up, sign the contract and keepsome money coming in.

    .

    Yeah, this time before Xmas isn't usually a good time to be looking for work.

    I'd definitely sign the contract though, even if they refuse your request for more money. No point being unemployed unnecessarily, just make leaving your focus.


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  • #7
    Tristan Gigantic Train
    Posts: 0 ✭✭✭✭ Tristan Gigantic Train


    antimatterx wrote: »
    The new contract would be permanent. But yea I'm only ever a months notice period away from leaving regardless. I think I'll sign in, but big decisions to make.

    I know this won't hold true for everyone but all my significant payrises have come from changing jobs. In my first professional job my pay increased by about 20% but I was starting from such a low base that my gross was still terrible. Beyond that it's been an odd percent here or there. From switching jobs, the min pay bump I've had is about 15%.


  • #8
    Francie Barrett
    Registered Users, Registered Users 2 Posts: 16,783 ✭✭✭✭Francie Barrett


    antimatterx wrote: »
    I probably won't get hired this side of Christmas though, so it might be worth my while to suck it up
    Of course you could. Where I work, it's not uncommon to turnaround an application to an offer within a week. It's two weeks max from application to offer, assuming the candidate doesn't drag their feet. If you are going to be leaving anyway, start applying now.
    antimatterx wrote: »
    The new contract would be permanent. But yea I'm only ever a months notice period away from leaving regardless. I think I'll sign in, but big decisions to make.
    Permanent fixed period contracts really are the worst of both worlds for the employee. The employee gets the flexibility of being able to fire you at a moments notice, not train you, treat you as nothing more than a hired gun, while not paying you the typical market rate for a contractor (for your experience, I'd say you'd be on €350 a day).

    Unless you really love the job, I would be looking to get out as soon as possible. You are not well paid and any company that is going to d1ck about with fixed term contracts (definitely not the norm) is likely not going to be too generous on salary/bonus either.


  • #9
    antimatterx
    Registered Users, Registered Users 2 Posts: 3,005 ✭✭✭antimatterx


    Smee_Again wrote: »
    Yeah, this time before Xmas isn't usually a good time to be looking for work.

    I'd definitely sign the contract though, even if they refuse your request for more money. No point being unemployed unnecessarily, just make leaving your focus.

    Yeah I agree. Especially with the time of year we're at. It's good to have some income regardless.
    Camille Crashing Rebellion wrote: »
    I know this won't hold true for everyone but all my significant payrises have come from changing jobs. In my first professional job my pay increased by about 20% but I was starting from such a low base that my gross was still terrible. Beyond that it's been an odd percent here or there. From switching jobs, the min pay bump I've had is about 15%.

    I agree. The way to get a pay bump is to leave. I just need to be more proactive and start looking.
    Francie Barrett wrote: »
    Of course you could. Where I work, it's not uncommon to turnaround an application to an offer within a week. It's two weeks max from application to offer, assuming the candidate doesn't drag their feet. If you are going to be leaving anyway, start applying now.

    Permanent fixed period contracts really are the worst of both worlds for the employee. The employee gets the flexibility of being able to fire you at a moments notice, not train you, treat you as nothing more than a hired gun, while not paying you the typical market rate for a contractor (for your experience, I'd say you'd be on €350 a day).

    Unless you really love the job, I would be looking to get out as soon as possible. You are not well paid and any company that is going to d1ck about with fixed term contracts (definitely not the norm) is likely not going to be too generous on salary/bonus either.

    2 weeks is a really fast turnaround. I applaud your company for that.

    The contract after this is permanent with no end date. Just 1 months notice period in it if I want to leave.

    I don't love the job, it's just a job tbh.


  • #10
    OMM 0000
    Registered Users, Registered Users 2 Posts: 3,733 ✭✭✭OMM 0000


    What's your skillset?


  • #11
    WhiteMemento9
    Registered Users Posts: 1,573 ✭✭✭WhiteMemento9


    Where are you based? If it is in Dublin then just start applying elsewhere. The market may have slowed in other places but in Dublin, a few big companies are hiring like crazy at the moment meaning the market hasn't slowed at all for people with experience.

    Outside Dublin, it may be different. Either way, that salary is extremely low for your experience. It would be considered low for someone just starting as a Dev in Dublin.


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  • #12
    smellyoldboot
    Banned (with Prison Access) Posts: 1,075 ✭✭✭smellyoldboot


    Apply for other roles. If they have been knowingly, and in that industry they well know they are taking the piss, underpaying you up to now, even a pay rise likely won't take you up to market rate.

    Don't offer any ultimatums unless you have a bolt hole secured. Seek other work first, then decide if any offer they can make is worth considering.


  • #13
    antimatterx
    Registered Users, Registered Users 2 Posts: 3,005 ✭✭✭antimatterx


    OMM 0000 wrote: »
    What's your skillset?

    I'm a fullstack Javascript developer. I use React on the frontend, and Node on the backend.
    WhiteMemento9 wrote: »
    Where are you based? If it is in Dublin then just start applying elsewhere. The market may have slowed in other places but in Dublin, a few big companies are hiring like crazy at the moment meaning the market hasn't slowed at all for people with experience.

    Outside Dublin, it may be different. Either way, that salary is extremely low for your experience. It would be considered low for someone just starting as a Dev in Dublin.

    I'm based in Dublin. The market for developers seems to be picking up, which is a great sign. I do agree the salary is low, but I think I'll just sign the perm contract, have a salary coming in, then look elsewhere.
    smellyoldboot wrote: »
    Apply for other roles. If they have been knowingly, and in that industry they well know they are taking the piss, underpaying you up to now, even a pay rise likely won't take you up to market rate.

    Don't offer any ultimatums unless you have a bolt hole secured. Seek other work first, then decide if any offer they can make is worth considering.

    I agree, they are taking the piss. I'm not leaving until I have something lined up though. It's still an income, but yea I agree with you.


  • #14
    WhiteMemento9
    Registered Users Posts: 1,573 ✭✭✭WhiteMemento9


    antimatterx wrote: »
    I'm based in Dublin. The market for developers seems to be picking up, which is a great sign. I do agree the salary is low, but I think I'll just sign the perm contract, have a salary coming in, then look elsewhere.

    I don't think it ever dipped. It does seem to have affected graduates ability to find jobs probably because companies have more experienced people to choose from who might have been let go in certain sections but overall due to online traffic increasing, a few companies hiring tonnes of people and many companies in this sector being insulated to the pandemic the overall market has stayed very robust and could be even stronger than ever. I know lots of people who have moved during the last few months with no issues finding jobs and most got huge increases in salary when they did move.

    I think the approach of staying in the job while trying to get hired elsewhere is a sensible one.


  • #15
    OMM 0000
    Registered Users, Registered Users 2 Posts: 3,733 ✭✭✭OMM 0000


    antimatterx wrote: »
    I'm a fullstack Javascript developer. I use React on the frontend, and Node on the backend.

    OK, loads of jobs for you, so don't stress about quitting!


  • #16
    Tristan Gigantic Train
    Posts: 0 ✭✭✭✭ Tristan Gigantic Train


    They're taking the piss paying you 33k given your skillset/role with 2.5 years experience imo.


  • #17
    antimatterx
    Registered Users, Registered Users 2 Posts: 3,005 ✭✭✭antimatterx


    WhiteMemento9 wrote: »
    I don't think it ever dipped. It does seem to have affected graduates ability to find jobs probably because companies have more experienced people to choose from who might have been let go in certain sections but overall due to online traffic increasing, a few companies hiring tonnes of people and many companies in this sector being insulated to the pandemic the overall market has stayed very robust and could be even stronger than ever. I know lots of people who have moved during the last few months with no issues finding jobs and most got huge increases in salary when they did move.

    I think the approach of staying in the job while trying to get hired elsewhere is a sensible one.

    Did it not dip? I remember looking in the summer and there wasn't much, although recently big companies like Mastercard, Workday and Hubspot have been hiring loads.
    OMM 0000 wrote: »
    OK, loads of jobs for you, so don't stress about quitting!

    Good to know. It's more apprehensive than anything else/
    Camille Crashing Rebellion wrote: »
    They're taking the piss paying you 33k given your skillset/role with 2.5 years experience imo.

    I know, it's ridiculous. I only have myself to blame for taking it I thinkl


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