The 5 year plan to £50k

[dowie]

FWIW - Software Engineer

Graduated 2011
2011 - 25k
2012 - 27k
2013 - 31k
2014 - 33k
2015 (Moved company) - 46k
2016 - 48k
2017 - 52k

I know really I need to move company again, it's just so depressing. I'd really like a 'career path' that I hear to much about but software companies in the UK just don't seem interested. I've done plenty of project management and planning as cover or deputy but actually stepping up into a role like that seems like I have to take my chances at other company interviews .

good illustration of how moving companies boosts earnings vs the token pay rises you get for staying in open place

also perhaps highlights how important negotiation or having competing offers is re: both your initial salary and the salary when you move... it can lethally boost your progress by years each time

ref career path - software isn't like accountancy or law where there is some path to partner level that you can attempt to follow. I guess some companies so have levels etc.. plenty of others have a fairly flat hierarchy

If you were to work in a bank I guess you'd have some hierarchy/structure if that is important to you

in terms or earning more - some finance experience can likely do that for you, contracting as a developer ought to get you say 500 a day+ and that can increase a lot with specific domain knowledge or knowledge of particular software etc..

I guess people working in security can earn a decent wedge too, especially if contracting. Likewise data science is pretty well paid, though might require you heading back to uni for a masters.

 

[El Pew]

IT Security products

Ditto here.

Pre-sales really is the perfect sweet spot in IT - all the technology you want to play with, but none of the tedious responsibility for designing, deploying, maintaining or supporting any of it. Similar money to sales, but none of the actual pressure of being primarily responsible for bringing home the bacon. Get to hang with the cool kids entertaining clients on the golf course or in the corporate box at Wembley, but also be able to sit with the actual techies and talk nerdy.

It's a great life.

 

[Fusion]

Absolutely. I'm super grateful and aware that overall I'm doing OK, and 50k was like many a target of mine. The issue is now I'm here it's not what I thought! Fact is rent has more than doubled in the last 5 years around here, Council Tax is up ~30% and day to day expenses are following that trend.
It's more the fact that UK/EU attitudes towards SW are pretty poor I think. We are first and foremost a cost, a negative, a sink. We're not seen as investments or creatives like many US companies (appear) to approach SW. Similar to a lot of IT departments complaints really.

Anyway onwards and upwards, going to write a master plan today and fire it up the chain - see what happens.

Outside of London/SE you should be able to have a good lifestyle on 50k. You also ought to be able to buy rather than rent, you'd be able to look at £250k mortgages. You should be able to buy in most regions of the SW for that.

 

[Pudney]

True, my friends brother started his own online company back in his uni days selling bra's for the bigger ladies. 6 years on his company is valued at over 50k and has people interested in buying the company.

Certain business ideas for everyday items you never think it be worth money.

I presume his business is worth a lot more than £50k, as that isn't actually very much

 

[malachi]

I presume his business is worth a lot more than £50k, as that isn't actually very much

But for only selling bra's from his laptop. a lot more easier than the alternative to getting over £50k.

Still he's not selling it off because he knows he can make more money.

 

[Pudney]

But for only selling bra's from his laptop. a lot more easier than the alternative to getting over £50k.

Still he's not selling it off because he knows he can make more money.

Sorry, does the business generate £50k, or is the business worth £50k?

 

[malachi]

Sorry, does the business generate £50k, or is the business worth £50k?

the business worth £50k

 

[randomshenans]

So on simplest valuation form of 4x multiplier, he's turned 12.5k in profit from it.

 

[HangTime]

Ditto here.

Pre-sales really is the perfect sweet spot in IT - all the technology you want to play with, but none of the tedious responsibility for designing, deploying, maintaining or supporting any of it. Similar money to sales, but none of the actual pressure of being primarily responsible for bringing home the bacon. Get to hang with the cool kids entertaining clients on the golf course or in the corporate box at Wembley, but also be able to sit with the actual techies and talk nerdy.

It's a great life.

I'd never really thought about it that way but I suppose it has some truth it in. I used to be involved in Presales but that wasn't my primary role, more a case of being a consultant supporting the sales team in the absence of a dedicated presales function, so I'd also have to actually deliver what was being sold

Depends where you see yourself and where you want to be career wise. You could simply go contract and crack it right up past the 50k mark, but you'll not get any progression as in management etc.

From what I can see in my industry, contracting pays so well that apart from those the absolutely highest of ambitions, there is really no need to progress for most people. Take C-level people out the equation and contractors earn pretty much as much as any of our permies, except maybe the odd one or two when there is a very good bonus year. The problem is exacerbated somewhat by the 60% marginal tax rate you get as permies between £100-120k, so as say a "Head of" you aren't really any better off than a contractor at least 2 rungs lower down the hierarchy.

 

[ObSene]

I'd never really thought about it that way but I suppose it has some truth it in. I used to be involved in Presales but that wasn't my primary role, more a case of being a consultant supporting the sales team in the absence of a dedicated presales function, so I'd also have to actually deliver what was being sold


From what I can see in my industry, contracting pays so well that apart from those the absolutely highest of ambitions, there is really no need to progress for most people. Take C-level people out the equation and contractors earn pretty much as much as any of our permies, except maybe the odd one or two when there is a very good bonus year. The problem is exacerbated somewhat by the 60% marginal tax rate you get as permies between £100-120k, so as say a "Head of" you aren't really any better off than a contractor at least 2 rungs lower down the hierarchy.

Interesting, I work at a bank in London doing security engineering and my base salary is between £100-120k excluding bonus, but I get 35 days holiday, excellent pension and lots of other perks, so for me I don't think contacting is worth it.

That's not to say that if I were to be made redundant, I wouldn't give contracting a go

 

[Altaz]

1998 £7.50 p/h- Left college with no qualifications, did a few market research roles (telephone interviews) for a couple of years, didn't really stick with anything

2000 - £12k - Joined a 1st line support desk, pay was ok, but was made redundant after a year. I would not work for another 2 years.

2004 - £12k - After hitting a serious spate of depression, pulled myself out of it somehow and started looking for work, found another 1st line support desk role, about 2 hours away from home. This would be the turning point...

2005 - £16K - Moved to a new contract within the same IT service company, now covering a helpdesk for a global financial/media company, this time only 20 mins walk from home. Apart from the shorter distance, there was also the possibility of eventually working directly for the new company (this would take longer than expected)

2006 - £18K - Promoted to team leader, was **** at it and hated it, ended up losing 6 stone due to the stress.

2007 - £25K - IT company lost the contract, was TUPEd to the new company that won the contract, I had already been looking to make a move, however due to my knowledge the new company offered me more money and a progression path to my preferred role of a Technical Project Manager. For once the company actually kept their promises and I moved to the TPM role within 4 months.

2012 - £39K - After 3 attempts, finally get a roll working directly for the company as a FTE. New role was a Technical Service Manager; I had my own set of accounts, and looked after various financial products.

2017 - £50K - After a number of years in the TSM role, given more responsibility, which included looking after a number of T1 banks. However, the wage disparity within the team was too great, with differences in the region of 20K. Nothing was likely to ever be done, so I decided it was time to leave after being here for 12 years (contracting + FTE).

2017 - £72K - Found a role at a rival firm, now doing Technical Pre-sales, this is a smaller organisation and longer hours, and the work is tough. However, it was a change that needed to happen, and since I am out of my comfort zone, I have learned a lot while being here. I do miss the old company sometimes, but that was more to do with the culture. This was quite a jump in salary, but as they always say, never disclose what you are currently on, always state that they should pay you what the role is worth to them.

2018 - £74k - Thinking about my next step, not sure whether to specialise further or go down the management route. I think I have another year or two here before I start looking. I do know that I won't move unless I secure a role that is at least close to £100K. It's always been a goal of mine, and to be honest 15 years ago, I never would have thought I would have made it close to that.

 

[DAIR]

Inclined to agree but possibly because Somerset is an expensive area (I assume?)
Option could be to either move oop north or London?

I have no idea about software salaries but always see large day rates contracting in London... Sounds a pretty easy move to a commuter town if you're renting?

I've recently started working in Somerset. Is it really that pricey....?

 

[ChrisD.]

Interesting, I work at a bank in London doing security engineering and my base salary is between £100-120k excluding bonus, but I get 35 days holiday, excellent pension and lots of other perks, so for me I don't think contacting is worth it.

That's not to say that if I were to be made redundant, I wouldn't give contracting a go

I’ve been contracting for 5+ years on rates between £400 and £600 per day, plus occasional short stints at £750. The highest permanent job I’ve been offered close to home is £45k so absolutely not with it for me.

 

[DAIR]

Does anyone have good ideas for getting beyond 50k? Like many it was a goal of mine but now I'm there I realise how little it gets you in the modern economy. Fact is 50k in the 90s and 00s was great, but nowadays it covers rent and a cheap transport and that's about it. .

Agreed. I too believe that 50k back then was good monies. However, I was still in school back then.

I'd need to be offered at least 70k to even consider a perm role in London.

 

[DAIR]

I’ve been contracting for 5+ years on rates between £400 and £600 per day, plus occasional short stints at £750. The highest permanent job I’ve been offered close to home is £45k so absolutely not with it for me.

Interesting, I work at a bank in London doing security engineering and my base salary is between £100-120k excluding bonus, but I get 35 days holiday, excellent pension and lots of other perks, so for me I don't think contacting is worth it.

That's not to say that if I were to be made redundant, I wouldn't give contracting a go

That's good money. The problem with perm roles (imo). Is that you have very little freedom... Yeah you have 35 days off, a pension, security and all that jazz. But you could never going to work one day. Hand in your notice and not show up the next day - well I guess you could but the consiquences would be dire lol

Perhaps I'll consider going perm when I have a family of my own. Until then I'm not looking back. For me becoming a contractor was the best career decision I ever made

 

[malachi]

For people who are contracting in areas of technology(not necessary IT) what do you all do?

 

[InvaderGIR]

I've recently started working in Somerset. Is it really that pricey....?

Not really no. Bristol and Bath aren't cheap and easy commute areas to them aren't great but it's not awful at all and there is a huge amount of software jobs around most of which are decent salaries (or day rates for contractors).

 

[Maccy]

For people who are contracting in areas of technology(not necessary IT) what do you all do?

Automation & Performance Testing/Engineering. Trying to move more towards Devops though.

 

[bJN]

For people who are contracting in areas of technology(not necessary IT) what do you all do?

Instrument, Control & Automation maintenance and engineering.

 

[Jez]

I’ve been contracting for 5+ years on rates between £400 and £600 per day, plus occasional short stints at £750. The highest permanent job I’ve been offered close to home is £45k so absolutely not with it for me.

For higher permanent salaries (6 figure numbers) you need to be prepared to travel into London, i do so from Oxfordshire daily and it is a bit of a grind, but my experience out in the Oxford area are salaries such as you have mentioned, which are unacceptable to me. Are you based similarly far out of town?