To extend my contract or look elsewhere?

[LulaBe]

Hopefully not outing - im in a role which is relatively familiar to me, im well respected and its not too taxing. It's incredibly flexible but the rate is not as high as i feel im worth. Im torn between looking elsewhere and getting more money but potentially a shorter length of time/would insist on more time travelling/less accommodating.

No harm in looking, is there?

Is there room for rate negotiation in your current role?

@FloralShirt they have given a small increase only - id say im underpaid by about 1k gross a month.

bump!

It's a contract role that I'm in at present. Whenever I discuss my current rate with agencies, they say I should be on at least X amount a day or more so that has me thinking i may be missing out/the company has shafted me.

However the phone doesn't ring unless you are immediately available either as a contractor so i havent had a chance to really test whether these high rate roles do exist for me. And I'm aware my current position ticks a whole load of non financial boxes. Only one agency contact who I know well said I should ask myself how much I really want that rate because it comes at a cost with travel, hours in the office, hours working etc. I guess I'm just thinking aloud here.

I guess you should take into consideration that agency staff have a vested interest in telling you you could get a higher rate elsewhere. Because what they mean is, if you move to another contract I can get a cut of your day rate/a finder's fee to put towards my sales target.

I would say if you're happy with the current contract and it's offering you a good work-life balance, there's a lot to be said for that. If it's paying you enough to do everything you need, put an appropriate amount into your pension, that's all good.

However, I would query if you're inside IR35, as it does sound rather like you're working as a pseudo-employee, it sounds long term and not based around particular time-bound outcomes? If you're working outside I would query if your working practices are putting you at risk of being found to be inside, which might be another reason to move.

I do think there's something weird about contracting whereby if you place yourself at a high rate, people make assumptions about your capabilities - and the reverse if your rate is lower. So don't undervalue yourself.

However be realistic too - you should still be able to gauge market rates even though you are currently contracting. If you're being paid well below that, then look elsewhere!

@tribpot I'm working under an umbrella company so I'm inside. This is the first time I'm contracting and I didnt think it would end up being so long and I didnt even think to renegotiate each time. It was largely a confidence thing and felt grateful to have a job. For my next role, ill definitely pitch much higher but if I tell my company I'm off, there is the risk I won't find anything.

The thing is when I thought my contract was ending ages ago, I did ring round all my contacts and they said definitely something would be available but the market has felt really quiet for a long time with friends blaming the looming recession.

Okay so if you're inside I think that's often a good first step into contracting as it means you're not dealing with VAT returns and invoicing or contract negotiations or corporation tax (all the faff that comes with running your own business). However, if you left the permie life it was presumably not in search of something which was basically the same but without some of the benefits of perm, like progression and pension contributions?

I do think the market is struggling a bit at the moment, so I think I would take a little while to do some networking and get a better sense of what's out there in your industry. Preferably not from agents who have their own spin. Ultimately I'm sure you do want to strike out fully on your own. That will require some risk so I'd spend a bit of time on risk mitigation before you make the move.

@tribpot I left permie life through redundancy but suited me as I was also pregnant. This job pays slightly higher than my salary as a perm plus really suits my situation as a parent. I will take your advice and keep looking but extend this contract whilst I can. I would just love them to be more flexible on the salary but they have only moved a smidgen.

Hmm so after tax, NI and pension you're not much better off than a permie? Does that factor in sick days and holidays? I feel like they're getting you as a slightly cheaper employee because their overheads will be lower. Overall not a great deal for you, but it seems like it suits your needs right now.

@tribpot I'm paid a bit better but nowhere near what id say I'm worth. Tbh I think if we go much higher, they are less likely to extend. Its frustrating but suits my lifestyle. I'll definitely keep looking!