Should I quit my job to become a contractor?
Tuesday, 3 June 2008
This question appeared on our General Forum.
Kinster
I see that the majority of contracts require you to start ASAP? Is it best to quit your permanent role to give yourself a better chance in this market?
Dr. McLaughlin
I would say no, not at the moment, as there are still a lot of out-of-work contractors. You stand the risk of being out of work for months.
However, it depends on a few factors.
Firstly, if you have some very up-to-date skills, especially ones where there is a shortage and where rates are very good, then it might be worth your while turning contract.
It would be worthwhile talking to a few agencies to get advice as to whether they thought that you marketable and your skills highly prized.
Beware though, it would be nothing to some of them if you quit your job and then they couldn't find you anything.
Notice
Secondly, it depends how much notice you have to give. If it is three months then that might preclude you from getting contract work.
If it is just a month, then that would not rule you out of all contract work. If a project is being put together then clients may well be happy to take you after a month.
There would definitely be a fair amount of contracts available to you even with a month's notice (at least in normal times). You would have the advantage of being able to hold on to your job at the same time as looking for contracts.
Make sure, though, that the agencies don't contact you at work, as it will soon become obvious to suspicious people (and there are plenty of them at most places) that you are talking to agencies.
Breed Apart
I would say that contractors are a breed apart. They are risk takers. They back their own ability (sometimes wrongly). They much prefer working for themselves than a company. They don’t want progression up the firm and don’t want to get involved in office politics (most of them).
They like earning a lot more money, and are prepared to give up their safety nets in order to do it.
What I suspect is that you are probably temperamentally a contractor.
Put it this way, if you are even contemplating giving up your job in a market where there are still more contractors than contracts, then you appear to have the necessary instincts.
Good luck if you do make the jump. However, I would urge a bit of caution till the autumn at the earliest if you really do feel the 'call of the wild' into contracting.
Kinster
I've had a lot of agencies call me up and it seems that they always want people to start 'ASAP'! Whenever I mention the '2 weeks plus' notice period, they go a bit quiet...
I'm thinking of jumping ship as I have enough to survive for a year, concentrating on starting a business also.
What do you think of me telling the agencies that I am able to start ASAP and when I do get an offer, just walk out of the permanent role?
Dr.McLaughlin
No, don't do that.
Tell them that you have a two week notice period but that you are pretty sure that they won't hold you to that and will let you away with just a few days notice.
The chances are that they will, as companies don't like to hold on to people who are 'on their way' too long.
They just spend their time making the rest of the employees jealous and making them think of leaving.
This article originally appeared on the British contractor's website IT Contractor.
Gerry McLaughlin (Feedback@NamesFacesPlaces)
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perm vs contractBefore you jump ship to contract from permie remember the rates are not as good as you may see in the ads eg http://it.seek.com.au/showjob.asp?jobid=12908514 Ad is for $1200 a day but they are trying to get way with paying $800-900 http://it.seek.com.au/showjob.asp?jobid=12794579 And this one is advertised at $120 p/h but only paying 100-110 I arrive at my FTE salary like so: 365 days a year less 104 weekends less 12 statutory holidays less entitlements of 25 days annual/sick leave gives a of 219 days per year which to earn as a contractor, not including downtime between contracts (if any). 100 p/h only works out to 160-175k pa or so at the end of the day. billy24, 06/03/2008 02:51:01 PM
Yeah..quit...quit...Quit - become a contractor - don't get any contracts - and join me on the unemployed gravy train courtesy of Macca's taxes.... UnemployedITer, 06/03/2008 03:35:33 PM
Start ASAP. Now!...otherwise...I won't ring backI've had a lot of agencies call me up and it seems that they always want people to start 'ASAP'! Whenever I mention the '2 weeks plus' notice period, they go a bit quiet... Sometimes companies are desperate - sometimes it's just the recruiter who's desperate! Companies generally use at least two recruitment companies to fill roles. I've found myself dealing with recruiters who are unweilding in regards to start time, only to find out that their client - the employer is quite happy to wait 2-4 weeks for me to be available. Recruiters do shoot themselves in the foot like this, however quite alot of them are gaining MBA's and are spouting out complete rubbish to the media. D, 06/03/2008 09:24:25 PM
MBAsRecruiters gaining MBA's hahaha... from where? those ads that fill up my webmail spam box?? And its up to you to name your rate. If you see a job advertised at X don't get talked into X*0.9 if you think you have the full skills etc.. At the end of the day, this is a candidate short market, one of the the reasons I believe Aus IT wages are pathetically low compared to the UK are that workers here want to be protected. If you don't ask, you don't get. I know good permies and even contractors who don't know the value of their own skills. Bid them up until somebody will pay. Then your old job will have to pay more to replace you and so on down the chain over time. Of course, a lot of work might be shipped to India, but then it would mean only the best survive here, and those will be left earning more. But then again, I don't have an MBA so could be totally wrong. Topdown, 06/04/2008 07:24:33 PM
MBAsSome of the recruitment company CEO's have MBAs and they use it to spout out inane theories on skill shortages. D, 06/05/2008 12:35:31 PM
MBAYeah M.B.A's : Married But Available ! billy24, 06/11/2008 02:20:23 PM
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