Full-time position turned contract - thoughts and advice?

12 Comments

1. AnonymousJanuary 19,2023 at 4:21PM UTC

   Are you currently in a full-time position with benefits and a living wage? If not, you probably don't have much to lose. If you would be leaving stable employment with benefits for a job that could end at any time and doesn't carry benefits, I would decline unless you can afford to take on the risk of it not working out, plus paying for your insurance and the extra taxes (which you would want to negotiate into the salary). Any new job can turn into a mistake, but there's typically a modicum of protection after the probation period on a full-time job that at least buys you some time to figure out your next step.

2. AnonymousJanuary 19,2023 at 4:48PM UTC

   I am OK with benefits because my spouse carries them. Mostly wondering what things I should consider. Don't know the difference between a contractor vs. employee. I am assuming I would not be eligible for the bonus, benefits, vacation time, etc. Is there a length of time I should ask for for the contract? Is it worth my while to take this or continue to look for full time employment. Any thoughts on pros/cons, questions to ask HR, and things I should have written into the contract would be appreciated!

3. AnonymousJanuary 19,2023 at 7:31PM UTC

   Some great suggestions already. Typically contract employees have no paid time off (sick, annual, holidays). They don't qualify for FMLA or benefits, and taxes are your responsibility. Bonuses, especially for project-based work, may well be on the table for discussion. You might have additional leverage on bonuses since the apparent intent is to move you into a permanent position eventually, which is often not the goal in these situations. This sounds like a feasible opportunity to get to know the company and you could consider it an extended (paid) audition. Best of luck!

4. Amy Birkner BrownJanuary 23,2023 at 4:18PM UTC

   Biggest thing is to speak with a CPA tax person. Being self-employed means you are incurring far greater tax risk. There are definitely ways to structure and offset this, but you will want to make sure that everyone is aligned on this prior to moving forward.

5. IkyJanuary 19,2023 at 4:50PM UTC

   From my corporate experience, this change might be due to change in budgeting.

   I had been a contractor multiple times and became a full-time employee when my contract ended. I actually liked the opportunity to get to know the company, culture, and their people before deciding to be their employee. In most of these situations, I got paid more due to the reduced benefits as compared to a full-time employee. At the time, I didn't care about the extra benefits.

   What are hoping to gain in this job?

   Would being a contractor minimize your opportunity to get what you want?

   If you like, message me and we can discuss further.

   Wishing you the clarity you need to make the best decision for yourself.

   Sending you blessings and joy.

   Have a wonderful day!

6. AnonymousJanuary 19,2023 at 5:29PM UTC

   I would consider no more than a year contract to keep your hiring on track.

   Further to make up for the lack of benefits, bonuses and perks, you'll need to make sure to charge 2.5-3x your salary at a VP level since that is what you'll be out of pocket by foregoing benefits, 401k match, bonuses and PTO, etc

   Make sure you sinc up you invoicing to their payroll schedule or you'll be waiting a considerable time to be paid. Again these types of things can be negotiated and/incorporated into you fee.

7. AnonymousJanuary 20,2023 at 1:58PM UTC

   I was once given the same offer and didn’t get that I would be permanently hired at the time they promised (which was three months while they worked out budgeting). Seven months later, they said they lost their budget and I wouldn’t be hired permanently. I left! Get it in writing with a clear start date as perm and like others said, back dated beneath. Good luck!

8. AnonymousJanuary 20,2023 at 2:49PM UTC

   I liked being a contract person. When I was forced to become an employee I ended up quitting as did most of my cohorts. But I didn't need benefits. Once you are an employee the company feels like they 'own' you.

9. AnonymousJanuary 20,2023 at 10:14PM UTC

   Interesting. What about being a contractor did you like?

10. AnonymousJanuary 22,2023 at 1:58AM UTC

    When I needed time off I could take it.

11. AnonymousJanuary 20,2023 at 6:34PM UTC

    Look at or speak to others who have contracted in similar roles and suggest a fair hourly or flat weekly rate. I would definitely do this and you should be open to it because you get to try before you buy and they can then hire their exec and if that person does not bring along their own VP in the temp role that you are in you can knowledge transfer to them what you have learned in the time you have been there and be a valued resource to them. It might or might not result in FTE with them but it's the best way to come in the door. Clearly they don't want to lose you, that is a positive but they don't want to undermine a permanent choice for the new incumbent they need to bring in. Its a win-win.

    Strongly suggest you do 3 or 6 month if the role they want to fill is a C -level one those often take at least 3 months to fill with external agencies or search firms.

12. Smith DesireeJanuary 30,2023 at 10:05AM UTC
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