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contract v/s permanent

 
#1 contract v/s permanent
14/10/2004 14:37

An MBA Grad

Hi

i have recently been offered a contract position with one of the top four for a daily rate of £400. Is it good enough to leave a permanent position with a not so big consulting firm giving me a base reference salary of £40k?

What is the likelyhood of these companies converting you to permanent?

What is the differential between contract and permanent in terms of level of remuneration?

Thanks all for your help.

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#2 Re: contract v/s permanent
15/10/2004 12:42

Day

Hi, I think you should answer two questions: is newly offered position interesting to you and is it giving you a better record on your CV. If yes then go forward, unless the contract is 4 weeks and after those 4 weeks you will have neither of jobs. However if newly offered position is on the same level, then of course the company name should matter. As I see top four is somehow better than where you work now. If the job is worse, then stay where you are. If talking about money, I think it is a reasonable rate, as if you work full time all the year through, it would give ~ 96K, which more than twice and think is worth taking a risk leaving the permanent position. Try to get in touch with other freelancers of that big four and you will have a better view.

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#3 Re: contract v/s permanent
18/10/2004 20:52

doesitmatter?

Financially, yes - it's simple maths really and you should have worked it out. The question is - why would the big 4 offer a contract rather than a permanent job? Because very simply they are totally unsure whether there will be work in the future because depsite what Bush and Blair say, the world economy is really not in top notch. If business dries out, it is a lot cheaper for the consultancies to lay off contract people than permanent ones. As for taking you on permanently, it all depends on whether you are as good as the MBA grad who they interview. Your chances will be better only if you can prove yourself and the bar will be very high for people like you. So my advise is - if you have been with yor firm for more than a year, then don't get greedy for the sake of money and stay at your current place and perhaps bargain for a better deal. Two factors may change this scenario - if you are pissed off at your work and if you can negotiate upto about £1000 daily rate. Then it might be worth the risk.

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