Hi all - This is my first post here!

16 Comments

1. AnonymousSeptember 21,2024 at 1:50AM UTC

   Former IT recruiter here. If you are in a position to counter, give them a higher rate. And request sign on bonus. If they decline ask for a review within your first 90 days and request an hourly increase. Is it possible you could go perm with their client? Only work a w2 if you can. Easier tax wise. If you don’t save 50% of your income to pay taxes. If you are living away from home you also should get a per diem. Pocket it live cheap. Or decline if they cannot match your offer. Say you offered 50hr, request 60hr. There is a sliding scale and a GPM they must reach. Keep us posted!

2. AnonymousSeptember 21,2024 at 1:32PM UTC

   Thanks for your reply and insights! I've been looking for over 4 months so I'm willing to take the offer and request an assessment within 90 days. I'm not 100% sure whether I'll be a W-2 employee or 1099 but given they're discussing benefits and 401K I'm thinking W-2. There isn't a guarantee to convert but that is what I'm hoping will be the case. The client is a good company that many would like to have on their resume!

3. AnonymousSeptember 21,2024 at 11:47PM UTC

   Take it if it suits all of your needs but ask for more $$. Negotiate if you are not living in your home and you have travel to the work site a higher hourly rate. And request per diem. Tax free for up to one year I think. Check with your tax advisor to be sure. Ask for everything higher rate sign on bonuses and an hourly rate increase after first 90 days.Chance you will not get the higher rate on front end so ask in writing for 90 day review for increase. Ask for all 3 and see where it takes you.

4. AnonymousSeptember 21,2024 at 11:48PM UTC

   Stick to W2 much better tax wise.

5. AnonymousSeptember 21,2024 at 3:54PM UTC

   This is great advice! What woukd be a good number to request for a sign on bonus?

6. AnonymousSeptember 21,2024 at 11:43PM UTC

   $5000-$10000. Very standard. Pretty much 90 days or so as a hold or you leave within or under their agreed time frame you pay it back.

7. AnonymousSeptember 23,2024 at 7:01PM UTC

   My post was 5-10K, the other poster said "nada".

   The answer is yes, some do offer sign-on bonuses. I've been a recruiter, we did. It depends on the staffing firm you went through. You can call them a 3rd party recruiter, and they are the conduit to the employer. The staffing firm has a window, a GPM, they work within. They can do whatever they want to A. make a placement, B. save a relationship with an employer, C. take a hit to get into a new company. I was in the top 10% of recruiters nationwide with one company and can tell you, NOTHING is black and white. Always ask. If you are told no, it's okay. But. Always ask. I made the highest placement GPM for one of the offices in the nation in the history of the company. Always put your negotiating hat on. It's doesn't mean it always works on your end or the recruiters, but nothing is gained when you don't ask.

8. AnonymousSeptember 21,2024 at 1:36PM UTC

   Thanks for sharing your thoughts. I've heard the going rate from other people who have contracted for this type of position is $150 - $175/hour but I don't believe this agency is willing to go there based on the initial conversation on what's possible. No hard numbers have been given but they did say the only thing they can't give me is equity so I'm going to ask for a bonus and sign-on bonus.

9. AnonymousSeptember 24,2024 at 12:04AM UTC

   Take it as our market is harsh, unreliable and you need to work. Plus it sounds like the company is a good one, which amps up your street cred, so to speak. I took a contract that gave me serious street cred. It made super marketable and my next gig I made more. As another poster said think of it as a stepping stone. Grab a hold of the experience, contribute, make waves and it will take you to your next fantastic journey!

10. Evelyn LivantSeptember 22,2024 at 2:20PM UTC

    If you are a 1099 contractor then the negotiated salary is usually higher than the going rate because you are handling all your own benefits.

    Also, make sure you are setup to pay taxes in your state and federal tax systems because you need to make quarterly estimated tax payments. That can get complicated.

    If you think you will become a consultant, you might want to get a tax professional.

11. AnonymousSeptember 22,2024 at 4:05PM UTC

    LONG REPLY: As a 1099 contractor you are usually paid hourly or based upon time and deliverables. Be sure to get an SOW (statement of work) not knowing what role you will take on it is hard to advise in detail. If you for example are a tech writer you work on a set project. The company will not pay you a bonus, or any benefits or a signing bonus. Those are reserved for employees and there is a wide line between 1099 where you have the advantage of writing off home office, expenses, and travel. If the company were to give you the things in your list you could be reclassified as an employee vs a contractor. As a contractor the company cannot manage your work, provide you with any reviews and you manage yourself. The company is your client/customer and you are providing a service. How will they pay you? Ask within your conversations about this. They will not pay alongside payroll dates because again they need to separate you from employee timelines. I generally recommend finding out if they pay vendors (you are a vendor) in 30 days upon invoicing. If this is the case you should invoice them weekly every friday include the hours you worked (cap it at 40- because they likely have budgeted that amount and won't pay more unless your contract specifies they will) Then you should have staggered monies coming in. If you do it monthly and they pay in 30 days you have a long wait for any money. Be sure the contract also has an escape clause that goes both ways. It should be ~10 day notice in there. I assume you got this role directly vs through any third party. If you are through a 3rd party and they will be taking payment and skimming a fee off your hourly rate be sure you do the items above with them. If you hope to be converted to FTE (full time employee) at the end of the contract ask if they ever do this and if so would this role likely convert. Only ask this if you have interest in this then the items on your list become relevant but NOT now and I would not discuss this because you would be talking past the role now and that is not good. You call it a base, but be sure that you know that what they pay you is a weekly rate or hourly rate and if you take the annual rate (if that is how they presented it to you) and divide that by 2080 which is the annual divided by 40x52 weeks then you will have the hourly rate. Try if you feel comfortable to rise that up by perhaps saying you have offered me 20 per hour and I would like 25. You may get it or they might only have budgeted what they offered you originally and that is that. They don't amortize contractors into salary budgets because you roll off at the end and as a vendor are likely listed in their budget as an expense NOT overhead or operational costs. Being a contractor is great if you compartmentalize it as a project and something that adds to your toolkit NOT as a necessary career move, more of a step in or a SME (subject matter expert) experience. Good luck.

12. AnonymousSeptember 23,2024 at 2:45AM UTC

    This detailed overview is great and much appreciated! This would be a stepping stone to obtain some specific skills on my resume that are lacking for a career shift therefore I’m willing to take the hit on the pay for now. Short term pain for a longer term gain is how I view it! Thanks again!

13. AnonymousSeptember 23,2024 at 4:49PM UTC

    Glad I could be a help. Think of this as a paid externship and though the compensation is not 100% what you hoped for, IMHO don't negotiate or put it at risk, take it as is as long as you have a strong SOW and those items listed above in there. Focus on results and deliverables and using them to learn what you need to and then you can take that to the bank in the next go! Congrats.

14. Tami L CannizzaroSeptember 23,2024 at 6:50PM UTC

    I agree! And I would add - if you haven't thought of this already - be sure to keep good notes of your work and copies of anything that might be useful for a portfolio. Even if you have to cover the company name due to agreements you may have made, future employers may want to see samples of your work. I did this when I began contracting/consulting and it was helpful.

15. Krystin MorganSeptember 23,2024 at 9:57PM UTC

    It depends on the details. Is this a 1099 independent contract, or is the company bringing you on through a third-party payroll service that will hire you as a W-2 employee?

    1099 contract roles don't include benefits, but you can certainly ask for a higher hourly rate—and in fact you SHOULD, given that you won't have benefits/bonus/etc. If it's a W-2 role through a payroll service, they may have a benefits plan you can use, but it's probably not very good.

    Ultimately, the positives of being a contractor are more flexibility and independence, but the rates should be higher than a full-time job since you're going to be responsible for your own insurance, paid time off, etc. I'd try to negotiate your hourly rate accordingly!

16. AnonymousSeptember 26,2024 at 7:27AM UTC

    UPDATE - I got the job! I was able to negotiate and get to a good place based on feedback from this group and a few others in my network. I can now say I'm no longer unemployed! Thanks for taking the time to reply to my post and sharing your wisdom! For those looking for their next role, wishing you all the best in this market!