Are you a 'Permy' or a 'Contractor'..discuss

Some years ago..contractors earned amazing money for installing Windows 95. Then things moved on. Companies realised they were paying top dollar for nothing and pulled the plug.

Then companies wanted to cut operational costs..so..'permy's' quit the job they had before promptly returning the next week as 'contractors' to do the same job earning more than the money they did as 'permys'. If you dont believe me I saw it happen when someone who was perm (non IT) quit and came back the next week power dressed and free from the shackles of the permy oppression she worked under. She earned much more..but..wasn't there long!

Good luck to her she was positive and showing what she could do in the presentation she gave in the meeting I attended in 1999. She was freelance..free from browbeating from oppressive managers and it showed!

Now we are in 2008. What are the experiences of contractors in IT? It seems the differential between contractors and permy's is not so great in 2008! In otherwords..for many they are mostly treated the same, and screwed even though they take the risks of contracting..the rewards in no way renumerate them!

Discuss!

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Comments

gojericho0

I am currently as a contractor for a large service provider that administers various state agencies networks. The pay is hourly so I am compensated for any overtime I work. All permanent employees here are paid with salary so they could have numerous maintenance windows off hours and it is be considered part of the job even if this adds an additional 10 - 20 hrs to your work week.

The downside is benefits are more expensive (last job was free). I'm nearly paying 8000 for my wife and myself for medical and dental coverage. There is a 401k, but the matching is only up $1500. It is also more riskier of course with potential termination at the end of the contract.

To help mitigate the risks and expenditures I negotiated up front for more pay as well as a signing bonus. I figured I already had a stable permanent position and did my best to sell myself as an asset. They were willing to negotiate and thats what ultimately sealed the deal in going from perm to contract. My best advice for when looking to contract is negotiate up front and do not settle for something you do not think you are worth. If an opportunity passes you by, there will always be another. If you have a job, there is no need to be desperate unless you really need a way out.

Even though I am not a permanent employee all the contractor basically does is sign the checks. I work directly with the perm employees and report to the perm manager. I have to follow the ISO compliance as well so all the corporate policies and politics come into play as well.

Now I only have 3 yrs experience out of college so I really can really only compare this to my previous permanent job in a short time frame. I'd be interested to see what other people think

Turgon

gojericho0 wrote:

I am currently as a contractor for a large service provider that administers various state agencies networks. The pay is hourly so I am compensated for any overtime I work. All permanent employees here are paid with salary so they could have numerous maintenance windows off hours and it is be considered part of the job even if this adds an additional 10 - 20 hrs to your work week.

The downside is benefits are more expensive (last job was free). I'm nearly paying 8000 for my wife and myself for medical and dental coverage. There is a 401k, but the matching is only up $1500. It is also more riskier of course with potential termination at the end of the contract.

To help mitigate the risks and expenditures I negotiated up front for more pay as well as a signing bonus. I figured I already had a stable permanent position and did my best to sell myself as an asset. They were willing to negotiate and thats what ultimately sealed the deal in going from perm to contract. My best advice for when looking to contract is negotiate up front and do not settle for something you do not think you are worth. If an opportunity passes you by, there will always be another. If you have a job, there is no need to be desperate unless you really need a way out.

Even though I am not a permanent employee all the contractor basically does is sign the checks. I work directly with the perm employees and report to the perm manager. I have to follow the ISO compliance as well so all the corporate policies and politics come into play as well.

Now I only have 3 yrs experience out of college so I really can really only compare this to my previous permanent job in a short time frame. I'd be interested to see what other people think

Sound like you are not that better off contract over perm really..you get overtime but what about your hourly rate against a permy? You could get waxed tomorrow..any more examples?

gojericho0

My rate as a contractor went up significantly (35/hr) as apposed to my previous salaried position (50,000). Now it was a big risk leaving my old company to work for a different one as a contractor. That is why I will continue to maintain a good relationship with my previous employer as well as try and keep looking for opportunities in the pipeline. The ability to learn more and help advance my skill set in networking is the biggest reason I took this job and even if I do get wacked I still will have taken a lot from the opportunity

Turgon

gojericho0 wrote:

My rate as a contractor went up significantly (35/hr) as apposed to my previous salaried position (50,000). Now it was a big risk leaving my old company to work for a different one as a contractor. That is why I will continue to maintain a good relationship with my previous employer as well as try and keep looking for opportunities in the pipeline. The ability to learn more and help advance my skill set in networking is the biggest reason I took this job and even if I do get wacked I still will have taken a lot from the opportunity

Your taking a risk there..good luck to you. I think the moral there is that being a contractor is far less than gravy. Anyone else have any tales?

gojericho0

Thanks! we shall see if the risk pays off...I just have been doing it for a month now, but the experience I am gaining is wonderful!

Slowhand

It's generally a trade-off. Back in the day, I was a contractor at Kaiser Permanente, and I earned a lot more than I could have as a permanent employee. However, I didn't get squat for benefits, and I had to account for every second of my time on the job, as well as have damn good reason for calling in sick. . . ever. I left my last full-time job, however, because I wasn't getting paid what I needed to survive, but I got good benefits and I'd been with the company long enough to enjoy a relaxed environment as part of the team. In my opinion, it's best to find a decent-paying permanent job, but doing contract-work is an excellent way to build up your skills, to make more money, and to have a bit of freedom; (for example, I'm going to be going back to school next year, and I may be looking for a contract position between now and then to help me fill up my wallet, while not having the obligation to stay any longer than the fixed time I'm signed up for.)

I guess the real tradeoff is that, as a contractor/temporary employee, you're expected to run higher risks of layoffs, and you're 'working without a net' in terms of benefits like medical coverage. The payoff is higher pay, so it's up to each of us to decide if it's worth it.

nicktf

I did two years contracting over here in the UK - whilst the pay was very attractive (perhaps double my salary at the time), I found it very hard to take holiday (this week off is costing me £xxx! I could be working!) and the Tax/accounting side of things was a PITA. On the plus side I could claim VAT relief against hardware purchases for the business (I remember putting an "analog control interface" though the books, also known as a ForceFeedback steering wheel!

)

It was all fine and dandy when I was carefree, but when marriage and mortgage came around, I took a permanent role, for security's sake.

If you are young, free and single, and don't mind moving around a bit, I say go for it. It's a good way to build up pots of cash

hypnotoad

Get in to education, religion, or gov't (preferrably all 3) and you can still rip people off in contracting.

MikeInMoseley

I read somewhere that contracting is more popular in the UK than in the US, I'm not sure if this is true? I've never done it myself but am considering moving to London and doing it later this year. Hopefully a mixture of training and teccie.

averyjas

I would advise anyone considering contract work to weigh the pros and cons of the contract from every angle. My last two positions were contracts and the one before that was perm, so I've seen both sides of the fence. You have to consider that a contract may offer you a higher starting rate, but less access to benefits and retirement account options. Also, you may have little to no vacation time offered, which can be difficult for someone with a family.
The biggest drawback is the company's ability to let you go at any time. Depending on your situation, this may catch you off guard especially if you are relying on the big paycheck to pay your bills. If you have a family involved, this could be a rollercoaster ride you aren't willing to take. If you are less willing to take a risk, the safety and reliability of a perm job will be your cup of tea.
I think contract positions are more for senior IT pros who have proven themselves in the biz with a proven set of high demand skills. They can demand the higher rates and have the luxury of marketing their skills, while using the terms of a contract to their benefit. But, if you are young and single, like it was mentioned above, a contract may get you exposure to a great team of professionals and excellent equipment for the terms of the contract. That could give you a leg up and a good start to your career. Just my 2 cents.

davidbarron

I think averyjas hit it on the head. If you are a senior level IT professional with highly marketable skills, or you are single and new to the field looking to gain experience and work with professionals then working as a contractor would be ideal. But if you have a family, or not really comfortable with your current financial situation then it is just not worth it to be a contractor. No benefits, and no real job security. I am working as a contractor right now, and thank god I am single and young and dont have much to worry about right now. All you family guys out there, and those struggling financially stick to the perm positions. The headache you deal with as a permanent salary worker is nothing compared to the worry and instability of being a contractor.

Turgon

davidbarron wrote:

I think averyjas hit it on the head. If you are a senior level IT professional with highly marketable skills, or you are single and new to the field looking to gain experience and work with professionals then working as a contractor would be ideal. But if you have a family, or not really comfortable with your current financial situation then it is just not worth it to be a contractor. No benefits, and no real job security. I am working as a contractor right now, and thank god I am single and young and dont have much to worry about right now. All you family guys out there, and those struggling financially stick to the perm positions. The headache you deal with as a permanent salary worker is nothing compared to the worry and instability of being a contractor.

You certainly need to weigh things up carefully. Im a contractor myself and the differential works for me at the moment, but everyone's situation is a little different!

gojericho0

I think a lot of it depends on the contracting firm as well. How has your experience been Turgon?

Turgon

gojericho0 wrote:

I think a lot of it depends on the contracting firm as well. How has your experience been Turgon?

Positive. They basically do a good job