IT Contractors

Richdog · 20 Aug 2015 at 10:53

As tempting as contractor money is, I will always take a well-paying permanent job any day of the week. Benefits + pension + relatively high job security > everything else imo.

mid_gen · 20 Aug 2015 at 11:05

Richdog said:
As tempting as contractor money is, I will always take a well-paying permanent job any day of the week. Benefits + pension + relatively high job security > everything else imo.

Doesn't make financial sense if you ask me. I was on a 50k salary before I went contracting. Tripled my take-home pay overnight. That beats any benefits. Pensions are very tax efficient as a limited company contractor. I always negotiated a one month notice period which is as much job security as you'll get in an employee role most of the time.

BusError · 20 Aug 2015 at 11:12

mid_gen said:
Doesn't make financial sense if you ask me. I was on a 50k salary before I went contracting. Tripled my take-home pay overnight. That beats any benefits. Pensions are very tax efficient as a limited company contractor. I always negotiated a one month notice period which is as much job security as you'll get in an employee role most of the time.

That, plus at the next round of layoffs, they'll get rid of a few perms, will get a hiring freeze and will have to take on contractors to do the work ;-)

Exactly what happened at my two current jobs! The fact that I'm vastly more expensive than a perm doesn't seem to count.

Not complaining ;-)

shiver · 20 Aug 2015 at 11:18

It's a lot easier to get approval for a contractor fund than a headcount position, not matter the short-term cost differences.

I think it all depends on the company, for some it really is worth the headcount position

Bear · 20 Aug 2015 at 12:16

DAIR said:
Got examples?

Just read through the last budget concerning the loss of the 10% tax credit on dividends and a 7.5% tax on dividends up to the higher rate tax limit, and also on the changes on travel and subsistence.

Diddums · 20 Aug 2015 at 12:17

Assuming I want to go down this route, where do I begin?

I'm looking at CCNA as that seems prevalent from a bit of googling, but courses range from 6 days to a year (from OU, described by students as being rather intense). Is this a decent place to start?

Cisco themselves seem to have a decent training program too:

http://www.cisco.com/web/learning/certifications/entry/ccent/index.html

Is CCNA even worth bothering with?

I'd love to get out of my current line of work which is why I'm starting an OU degree in October but this seems like it could be great to start off with.

Richdog · 20 Aug 2015 at 12:31

mid_gen said:
Doesn't make financial sense if you ask me. I was on a 50k salary before I went contracting. Tripled my take-home pay overnight. That beats any benefits. Pensions are very tax efficient as a limited company contractor. I always negotiated a one month notice period which is as much job security as you'll get in an employee role most of the time.

It's not all about the money for me... it's about having full rights within my organisation and being able to climb the cporporate ladder, as well as maintaining a stable lifestyle and knowing that my job is secure. Not to mention taking holidays when and where I please (within reason) and having sick pay wtc to fall back on if I need it.

The additional money a contractor receives, while of course very attractive, is compensation for the increased risk and disposability.

Schnippzle · 20 Aug 2015 at 12:35

Richdog said:
It's not all about the money for me... it's about having full rights within my organisation and being able to climb the cporporate ladder, as well as maintaining a stable lifestyle and knowing that my job is secure. Not to mention taking holidays when and where I please (within reason) and having sick pay wtc to fall back on if I need it.

The additional money a contractor receives, while of course very attractive, is compensation for the increased risk and disposability.

Climb the corporate ladder - Still possible
Stable lifestyle - very doable as long as you don't splurge your cash and be sensible
Sick pay - again, accounted for with the increase in wage.

Yes you are right with regards to full rights, but that can be covered within the signed contract.

Swings and roundabouts really. It's for some people, others not.

Richdog · 20 Aug 2015 at 12:46

Schnippzle said:
Climb the corporate ladder - Still possible
Stable lifestyle - very doable as long as you don't splurge your cash and be sensible
Sick pay - again, accounted for with the increase in wage.

Yes you are right with regards to full rights, but that can be covered within the signed contract.

Swings and roundabouts really. It's for some people, others not.

Of course it is is hourses for courses, but lets not pretend that a contractor is as stable or comfortable in their employment as a permanent employee.

As a contractor you could find yourself in the situation where you could not get a new contract for 6 months if the market goes bad... the work is not guaranteed.

mid_gen · 20 Aug 2015 at 13:01

Richdog said:
Of course it is is hourses for courses, but lets not pretend that a contractor is as stable or comfortable in their employment as a permanent employee.

As a contractor you could find yourself in the situation where you could not get a new contract for 6 months if the market goes bad... the work is not guaranteed.

Job security only extends as far as your notice period, which I have always negotiated as one month on my contracts, same as most permanent employees. Lose your permanent job, you could spend a lot more than six months out of work, and you won't have the cash pile to fall back you get when you contract.

As someone else said, I've seen a lot more permanent employees given their marching orders, than I've seen contractors let go or not get offered renewals. If you're in IT you'd be silly not to do it imo, there is no downside as long as you are sensible with your money.

After your first six month contract you should have enough money to not work for the next six months. It's a much more enjoyable lifestyle, you're not beholden to anyone, you work when and where you want to, *you* decide how much you are worth and what your remuneration is, rather than begging to some review board and all that corporate BS.

Ev0 · 20 Aug 2015 at 13:15

I had a very brief stint contracting and if situation was right would do it again, but at the moment my perm role is best suited for all manner of reasons.

Diddums said:
Sounds quite lucrative, I think I'm going to do a lot more research in to this.

Out of interest, what qualifications would apply to this and how long would it take to get them?

Well what is it you want to do? No point recommending project management certifications if you want to do networking

Richdog · 20 Aug 2015 at 13:20

mid_gen said:
Job security only extends as far as your notice period, which I have always negotiated as one month on my contracts, same as most permanent employees. Lose your permanent job, you could spend a lot more than six months out of work, and you won't have the cash pile to fall back you get when you contract.

As someone else said, I've seen a lot more permanent employees given their marching orders, than I've seen contractors let go or not get offered renewals. If you're in IT you'd be silly not to do it imo, there is no downside as long as you are sensible with your money.

After your first six month contract you should have enough money to not work for the next six months. It's a much more enjoyable lifestyle, you're not beholden to anyone, you work when and where you want to, *you* decide how much you are worth and what your remuneration is, rather than begging to some review board and all that corporate BS.

I know what contracting entails, many of my friends started on it before migrating to cushy (at a good level of heirarchy) permanent positions. They also say now that they would not go back.

mid_gen · 20 Aug 2015 at 13:51

Horses for courses. I just disagree with the notion that a permanent role is more secure than a contract role, it really isn't at all. The only security you have is your notice period, contract or perm.

Mr^B · 20 Aug 2015 at 14:00

You have notice period and redundancy, not just notice period. And most of the time companies give you far more than statutory redundancy. Here for instance it's one month's salary per year of employment with a minimum of 3 month's salary.

dowie · 20 Aug 2015 at 14:02

mid_gen said:
Horses for courses. I just disagree with the notion that a permanent role is more secure than a contract role, it really isn't at all. The only security you have is your notice period, contract or perm.

Well you're slightly mistaken - you can't just give perm staff notice like that, it is by default safer. If you're senior you'll have 3 months anyway if not then there is a whole redundancy process to go through. There are also considerations like bonuses, stock options etcetc... I'd wager that a lot of contractors at places like Google would be more than happy to become permanent staff. Tis completely down to individuals their lifestyle, their skillset - to say that one choice is better in general than the other is flawed.

Richdog · 20 Aug 2015 at 14:02

mid_gen said:
Horses for courses. I just disagree with the notion that a permanent role is more secure than a contract role, it really isn't at all. The only security you have is your notice period, contract or perm.

Permanent employees have more rights and are harder and more expensive to get rid of, especially if they have been working at a company for a year or longer... you can't simply say "Here is your notice period, bye bye". To get rid of a permanent employee you have to prove gross negligence or that there is no further need for their job role or suffer unfair dismissal proceedings.

Schnippzle · 20 Aug 2015 at 14:05

Surprised there hasn't been a suggestion yet for an OCUK "Ol' Boys" club yet

Intra-forum service recommendation centre.

mid_gen · 20 Aug 2015 at 14:12

Richdog said:
Permanent employees have more rights and are harder and more expensive to get rid of, especially if they have been working at a company for a year or longer... you can't simply say "Here is your notice period, bye bye". To get rid of a permanent employee you have to prove gross negligence or that there is no further need for their job role or suffer unfair dismissal proceedings.

In theory, in reality very few people will start legal proceedings if they are let go. They'll take their redundancy and leave. I know what some friends have received in redundancy even after 5+ years and it's just no comparison to the extra cash you'll have on hand after a few years contracting.

The sums just don't add up for me. If you're in IT, you've got 5+ years experience....take the money, lose all the grief, take long holidays, enjoy life

FutileBreadMachine · 20 Aug 2015 at 14:27

mid_gen said:
In theory, in reality very few people will start legal proceedings if they are let go. They'll take their redundancy and leave. I know what some friends have received in redundancy even after 5+ years and it's just no comparison to the extra cash you'll have on hand after a few years contracting.

The sums just don't add up for me. If you're in IT, you've got 5+ years experience....take the money, lose all the grief, take long holidays, enjoy life

shhh you're going to make more competition for us man!

Don't listen to this guy, contracting is the worst, keep your permie jobs!

GSXRMovistar · 20 Aug 2015 at 14:39

Been contracting for the past year after taking redundancy at my old place and loving it. Earning over twice as much as I was before without having to deal with all the corporate politics I hated. Now it's all about delivering a service.

These days I don't believe there is such thing as job security, always wanted to give it a go but couldn't afford to walk away from the redundancy which was on the cards for a number of years.