To Contract or To hold out for Permanent?

[CasperTFG]

I am getting back into the job market. Already have a prison I call work, so there is not immediate rush to jump into anything that comes along.

In looking for jobs I am finding that Permanent positions are few and far between. But there are contracts everywhere.

I'd like the horror or success stories from some people that have done contract work so that I can decide if I should take the plunge.

I'll start.

Success
About 8 years ago a College professor told us about one of his friends that works contracts for 8 months a year, he uses 2 months to take new classes and the other 2 months as holidays. He pulled in about 85K a year doing these small contracts.

Horror
One old classmate from College was working contract to contract after school finished. He did it for about 2 years pulled in 35K the first year and 65K the second (not too bad). Then in the third year the internet bubble burst. He is now working as a stocking clerk for Office Depot.

Casper

There is room for all of gods creatures, "Right Beside the Mashed Potatoes".

 

[MDXer]

Success:
Was terminated from a Full time job due to corporate politics 6 weeks later had a Contract making 3 times what I did full time. Contract ended and walked into a nice FT position where I have been going on 2 years and have already made lead developer in the DW group.

Horror:
Contract was in the SF area and I live in Sin City with my wife and kids. Contract required me to be at Client location M-F so I did the weekly commute. 3AM Monday on my way to the Airport 11pm Friday walking in my front door.


With that said I will also say that had it not been for the contract my skills would not have developed and grown as fast and as much as they did. Also many companies now use the contract period as a probation period I would say 90% of the contract offers I have recieved and continue to get have the catch phrase "Possible conversion to fulltime". Depending on your field and your skill level contract work can be quite lucrative.

Shoot Me! Shoot Me NOW!!!
- Daffy Duck

 

[chiph]

If you accept that the economy is in recovery, part of the normal business cycle is that in the early parts of a recovery, there are many more contract positions open than FTE because the firms are a little nervous over whether the recovery is for real or not, and don't want to staff up. Talent is also in short supply because people who currently have a full-time job don't want to leave just yet, for the same exact reason. So, times are good for contractors.

Towards the end of a business cycle (the dot-crash being a severe example), the contractors are the first to be let go, for the simple reason that it's easier (no need to pay severance, no regrets, etc).

Chip H.


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[CasperTFG]

I am worried about the stability though. I have a one year old son and a stay at home Mom to take care of.

Casper

There is room for all of gods creatures, "Right Beside the Mashed Potatoes".

 

[MDXer]

Contract positions are just that. They have a definite end time unless an offer is made. However, there are no garuntees that an offer will be made. I had a contract offer that I turned down due to the hourly rate they wanted me to slash my rate by 50% they filled it with a cheaper candidate whose contract they cancelled 3 weeks later and then came to me offering my full rate. So as you are quite aware of there are no garuntees. The best pieces of advice are:

1) Don't over sell your skillset. You can get away a bit but if you totally blow things you won't last long and depending on your area you may have trouble getting other contracts.

2) Don't take a rate just to get your foot in the door. As a contractor you are in business for yourself to some extent. You need to ensure that what you make is enough to cover your expenses and allow a nice profit.

3) Save, Save, Save. While it may be nice to pull 2-3K a week on a good contract the day will come when you won't have it for a period. putting away as much as you can as fast as you can will give you some cushion at the end of the contract.

4) Don't forget your family. While you often have to bust yourself to make unreasonable deadlines don't do it at the expense of your family. Make time for them or you may pay the price later.

Good Luck!

Shoot Me! Shoot Me NOW!!!
- Daffy Duck

 

[CasperTFG]

I think #3 is what I am really concerned with.

If I could get a good Contract to start with that would let me put away a nice enough next egg that if I don't get work agin for a few months it would not make me sell my house.


Casper

There is room for all of gods creatures, "Right Beside the Mashed Potatoes".

 

[CasperTFG]

Okay so with building enough of a next egg in mind. What type of compensation should I be looking for in a contract position.

If I currently earn $50K a year with full benefits etc. How much should I look to get paid for a 6 month contract?

Casper

There is room for all of gods creatures, "Right Beside the Mashed Potatoes".

 

[langleymass]

Talent is not in short supply.

 

[MDXer]

I would say some where in the range of 70K per year which would be 35K for a 6month contract or in the range of 33 per hour. THats just a base number of 40% more than what you currently make to compensate for expenses and such. Personally I would start with a number of $50 and hour and if need be let them negotiate you down.

Shoot Me! Shoot Me NOW!!!
- Daffy Duck

 

[chiph]

If I currently earn $50K a year with full benefits etc. How much should I look to get paid for a 6 month contract?

At a minimum, charge a 25% premium because you won't be receiving benefits, plus the lack of job security inherent in being a contractor. Ask for more, but don't settle for less.

Like MDXer says, you should save 'till it hurts when on a contract, so that you'll have a cushion when it ends. I try and keep six months of income (not expenses!) in near-liquid savings for when the job ends.

Chip H.


____________________________________________________________________
Donate to Katrina relief:

http://s1.amazon.com/paypage/PELYGQVJ8Q7IB/103-6821258-5919825

If you want to get the best response to a question, please read FAQ222-2244 first