Contracting VS Full-Time

[Pho3nix]

Hi guys,

So I've come about in a very stressfull position wherein I'm to decide between staying full-time or working as a contractor at double(hopefully triple) what I earn as a full-timer.
As many of you guys are aware I'm not "qualified" in the dev field but have almost 2.5years working experience at the moment. Now I'm looking to posibly move as retrencments hit the company I'm with and while I'm safe(apparently), not really so sure about staying as the company is still in debt as I hear.

Now the "process" should be finished in the next month but I'm still undecided if I should stay (team lead is an awesome mentor) or leave(lead at full time op is also pretty awesome) or contract.

Don't have massive responsibilities like bond,car.

Thoughts?

 

[guest2013-1]

If I were you I'd stay, especially with a good mentor. I'd look at contracting when you have about 10 years experience under your belt.

 

[roguemat]

Leaving my fulltime job was the best thing I've done with my work life. And I did it a month before asking my gf to marry me. Was helluva risky, but now I've got a great thing going. And a wife

 

[Gnome]

I've been on contract since I left university.

My lowest increase thus far has been 25% between contracts.

When I decided to move to Cape Town start this year I had interviews lined up starting 3 days after I put my CV online for about 2 weeks (the response was hectic). And shortly thereafter I got plenty of offers.

Point being, there is plenty of work and a lot of desperation.

In Gauteng my old company had a real problem finding skilled developers. Here in Cape Town it is easily just as bad.

I know for a fact that most of the large companies here in CT are hiring, the problem is finding someone that fits the budget and required skill level.

 

[Gushesh]

Good to see some responses on this topic, i asked something similar here

I would say that contracting with the correct amount of experience is the best way to go.
Be careful though as if you have a chance to keep learning and be mentored then another year or so could also be a good thing.

What area of development are you guys contracting in?

 

[Pho3nix]

I'm in C# development. Where I'm considering contracting there is a mentor there who has already been a huge help skilling me up in Web development.

Thanks for the feedback so far guys. Weighing up my options at the moment.

 

[Ghost02]

What's the pay difference usually contract vs permanent for similar experience ?

 

[debonair]

Try contracting and see how it works for you. Its definitely a lot more challenging. Also you get to work on a lot of different things which is good for experience. The amount of experience you have is fine, you can learn the other stuff as you go.

 

[Pho3nix]

What's the pay difference usually contract vs permanent for similar experience ?

Contracting would offer double my current salary

 

[Pho3nix]

Try contracting and see how it works for you. Its definitely a lot more challenging. Also you get to work on a lot of different things which is good for experience. The amount of experience you have is fine, you can learn the other stuff as you go.

Already noticed that it's a little more challenging as I'm held accountable and I can't hide behind the company. Isn't 2 years too little?

 

[Gushesh]

Isn't 2 years too little?

This is something you would know the answer to, depends how comfortable you feel with your skills, finances etc. For example, i have six years of SAP consulting experience as a permie but until recently i never considered contracting. I now feel ready, comfortable and have a number of ideas to put into practice that i can't as a permie. For some, six years would be too long to wait, for others it wouldn't be enough.

 

[Goliath]

If I were you I'd stay, especially with a good mentor. I'd look at contracting when you have about 10 years experience under your belt.

Agreed.. keep a permanent job while you have it, worst case you can always then jump to contracting work if you get retrenched..

 

[noxibox]

Independent contractor? i.e. make your own hours, don't take orders from the company, etc.

 

[noxibox]

Contracting would offer double my current salary

That's unusual in my experience.

What's the pay difference usually contract vs permanent for similar experience ?

Usually nothing or very little. As an independent contractor you also have to buy all your own equipment, pay all your own office expenses, get no sick and annual leave. In some cases you might do work for someone where they also provide you with equipment and a place in their offices.

 

[The_Ogre]

OP, you should PM Mike Smit for advice. He's been contracting for a while now and knows the rules of the game

 

[Pho3nix]

That's unusual in my experience.

Really? :erm: Don't tell the people who gave me the offer lol

OP, you should PM Mike Smit for advice. He's been contracting for a while now and knows the rules of the game

Thanks , asked Mike about his thoughts on contracting in another thread (What's your job worth in OT ) lol. He gave me some awesome advice

 

[Pho3nix]

This is something you would know the answer to, depends how comfortable you feel with your skills, finances etc. For example, i have six years of SAP consulting experience as a permie but until recently i never considered contracting. I now feel ready, comfortable and have a number of ideas to put into practice that i can't as a permie. For some, six years would be too long to wait, for others it wouldn't be enough.

This is whats on my mind as of late. I know my stuff and if there is nothing I don't know, the seniors at the company can assist. When contracting don't want people questioning why I get paid a certain amount. There are people I could ask if/when I go into contracting but in the industry not knowing something can get you sacked and not sure I'm ready for that kinda pressure.

 

[noxibox]

This is whats on my mind as of late. I know my stuff and if there is nothing I don't know, the seniors at the company can assist. When contracting don't want people questioning why I get paid a certain amount. There are people I could ask if/when I go into contracting but in the industry not knowing something can get you sacked and not sure I'm ready for that kinda pressure.

Actually they can't just terminate your services. As far as the law is concerned you have the same rights as any other employee. Unless you're an independent contractor in which case they may be able to depending on the contract. If they specify work hours, where you may work and have someone managing you, then you're an employee, and you get employee rights.

 

[BlackWasp]

I was in the same position as you a few years ago. I started learning Delphi and Oracle in a permanent position. After 2 years I was faced with a decision to stay permanent or try to be a contractor. Well, I chose to take a leap of Faith. My salary doubled. More than ten years later, I am still working as a contractor. Unless I really have no choice, I will never work in a permanent job again.

 

[noxibox]

If you're going out as an independent contractor, then you can potentially make more. Particularly once you hire some junior people to do the actual work. It's a big leap and there's no guarantee of income. You have to make contacts and find ways to bring in business. It's not as easy as going onto a job site, searching for advertised positions and going to interviews.

If what most people are talking about is the 12 month full-time employee contract, then it's no big deal. There's an endless supply of jobs and if it gives you a big pay increase, then you might as well do it. Many years ago companies in Cape Town did pay a bit of a premium for this sort of contractor, but these days most pay about the same as they would for a 'permanent' employee. Since you also have rights like paid sick leave, paid annual leave, same termination procedures the only real instability is having to go for interviews every 12 months (or however long your contracts tend to be).