New contract after self employment - salary negotiation??

[ScratchRhythm]

I'm a consultant and have been self employed for a few years now. From time to time, I have taken on short term contracts as an employee (always retaining the right/ability to maintain my own practice as a sideline). I only do this if the work is flexible (2 small kids) and the project really interests me and it will add valuable experience to my CV.

I have been headhunted for a new role and it has now been offered. I really want the job as it will give me experience of a new area and some recent team leadership experience, which I obviously don't get being a one-woman band.

I'm just not sure about the salary. I typically earn £50-60k through my own company, working 3.5 days per week if I fill my diary. Obviously a company will pay less as I have job security, a 10% pension, health insurance, sick pay etc. They have offered £45k for a 4 day week (the hours will probably work out pretty similar when I account for all my non-chargeable time). I will also have more travel costs than I do now as they want me in London 2 days per week.

They know I earned £41k (Pro rata) in my last employed role (in the last year) but that was fully home based so no travel costs. I probably should not have divulged this but I am very out of practice and they were very pushy!

Given they have already offered a 10% pay rise on my last contract, how should I play it? I want to ask them for £48k to take into account the increased travel costs. I do really want the job though as I feel really stuck in a rut at the moment!

A colleague who was taken on as permie after contracting got a good deal to reflect that he'doesn't previously had a contractor role and remuneration.

Ask for more (I'd probably ask for 50, so there's room to negotiate down) - but also be ready if they say no. What's your absolute bottom limit?

If they really want you, and you don't need the job but could carry on as self-employed, then I would say you can name your price. Value the job to be done, your previously salary may not be relevant. I'd be upfront and say that your current self employment gives you an equivalent salary to 50k+, and you need x on top of that for the additional travel. Any security that a job gives is offset by a reduction in flexibility.

Thanks both. I called yesterday and asked for 50k. I think 48k is my bottom limit although I will be sad to turn the job down if they won't do it. I guess it will take a day or two to get back to me as finance etc will have to sign off any increased offer. Fingers crossed.

Bear in mind that a 10% pension contribution means that £45k salary is effectively work £49.5k.

Well, they agreed to the higher salary. I'm pretty excited about the new job! Going back after a maternity leave and couldn;t get excited about more working from home as a freelancer. Thanks all!

Congratulations!

Great news, well done!