Quit my job, without another one and go contracting?

[Pokydoke]

I'm torn about what to do about my job, and I need some sensible anonymous advice!

I worked in a senior executive role, earning a high wage, but I hate it. I've hated it for years really but always convince myself that I get paid well and they are very flexible with me, so I should just put up with it. Some things have happened the last few weeks that I just spend my entire time seething about and it's impacting my mental health and my relationship with my darling (but very annoying when stressed!) kids.

I've always fancied going contracting, earning a really high day rate, for a much simpler job than I do now, with very little office politics involved. I think mentally it would be much better for me.

But the thing is contracting isn't a stable job as you often have to find a new contract every 6-12months. Plus I'm on 6 months notice and people want to hire contractors immediately so I would have to quit now and wait until near the end of my notice period to get a contract job.

Would I be totally crazy to just quit?!? For context I pay half of the mortgage and all household bills and my husband wouldn't be able to cover it on his own. In the next 6 months though I'd be able to save a decent wack to have a bit of a cushion.

Thoughts? Has anyone else done this and it worked out OK? Thank you!

I don't know what your area of work is, and that makes a difference. But whilst I found contracting paid a better day rate, it meant no sick pay, no pension contributions, no paid holiday. The job needs doing so it can be long hours, then chasing work. And you definitely don't get away from the politics - it's just different politics. I did it for several years. Some things I liked, others I didn't. But in the end I'd have to say that I'm glad I no longer have that pressure.

Are you me? I'm in this position right now. Can't bear current job and I'll be off like a shot if I find something else.
I'm on 3 months notice but intend to give only a month. I don't feel guilty as I've been treated like dirt!
I'm looking for longer contracts like mat cover, can be a great way to gain experience and industry sector exposure.
The uncertainty isn't great but then neither is being in a shite job!

I did this and had a mad year initially earning more than ever but now the work has properly dried up (govt funding cycles) so I am considering becoming employed again.....it definitely depends on the sector and what your network is like, do you know people who would give you work?

I basically threw my toys out the pram and quit my job 10 years ago, I've been a contractor ever since. My only regret is not doing it sooner.

I find I can deal with office politics and all sorts of stupid decisions when I know there's an end in sight.

Sadly, my hope of working and then having extended breaks has never panned out as I seem to go straight from one contract to another. Most of my contracts start off as either 3 or 6 months stints, but normally end up being between a year to 18 months.

I've always fancied going contracting, earning a really high day rate, for a much simpler job than I do now, with very little office politics involved.

You seriously think there's no office politics and the jobs are simpler as a contractor but highly paid??! You clearly have zero experience of contracting. 😂

@HundredMilesAnHour In my current role, I hire and manage a large number of contractors, all doing a job I could do in my sleep (and have done for over 15 years), but getting paid the same if not more than I do. I regularly discuss with them how they enjoy not giving a crap about the politics. But thank you for the comment 🙃

@UnaLaguna That's great to hear! I have been thinking about doing it for years, and have quite a few friends who do a similar role and love contracting. I just need to be brave enough to take the leap!

@Quveas I'm in change management/ project management/ programme management. The pension I think I could cover with the day rate, but lack of holiday pay etc is definitely something that concerns me. I love a day off!

It sounds like you know the industry well and what the advantages/disadvantages are. How much of a cushion do you think you’d be able to save up for?

I would echo what a pp said about not just viewing the bottom line of figures, but the package as a whole. It’s easy to forget about pension contributions, annual leave, other benefits etc as definable additions to your base salary. Could you work out roughly how much they top up your salary currently and then review the comparison?

It’s totally demoralising dreading going into work though, I sympathise completely. Hopefully you make the best choice for you, family and career.

Do you have a few clients that can give you a steady stream of work? Are you thinking of contracting for your current company? It is best to have that safety net to avoid long periods of fallow.

Alternatively, can you find a pt job which provides a steady income and you contract for the rest of the week? Not sure if your work is piece work (where this can work) or mega projects (where you cannot juggle with another job because it is so full on).

You do have to go out and look for work. How hard is this to do? My dh is self-employed and has to do business development to get work - take people out for lunch and socialise with them. Does that appeal? I'd not like to do that at all and be bad at it, so I am an employee.

Well of course they get paid the same or more than you, they're contractors and you're perm. Your reply is rather patronising and it seems you think you know it all so I'm not sure why you're even posting.

But hey, what would I know? 25+ years experience in project/programme management as a contractor, a consultant and perm leading teams of 200+ people.

but getting paid the same if not more than I do

If that's the case I'd really do the sums. For my contracts I'd generally want to be earning three times the amount I would as a permanent member of staff, assuming I work 220 days a year.

You seem to be me!! I’d love to quit and contract but I’m scared as my household depends on my income. I’m seniorish and have been in my role for ages. Good luck.

If I could guarantee myself work I'd quit tomorrow. Dream of leaving every day. As it is I'm quiet quitting and doing all I can to secure another role. Came a close 2nd to 2 mat covers in the past month, quite like the idea of mat cover as you're just stepping into someone's shoes for 9- 12 months long enough to get some good experience without the perm Commitment.

Back in the mid 00s, I contracted for about 4 years and was never out of work, this was pre financial crash though and I'm not sure things have ever been the same since.

First question - why do you hate your current job so much? I was in a similar situation many years ago and ultimately, I hated it because my manager was a horrible human being who was bullying me. So I had a conversation with them after I'd had ac conversation with a lawyer, and the result was a very decent severance package, including a long gardening leave.

As you have a long notice period, there's no reason not to do your research. Ask around and see if you are 100% confident you could get contracting work. If you are confident, resign and hope that you'll be allowed to leave early which means even if you can't work, you could use that time to line up some work for once your 6 months are up.

Re fees - you need to think carefully about the rate. It's 100% true that a contractor rate is much higher but you have to do the sums and have the discipline to ensure that you are putting aside money for tax, ni, pension, annual leave etc. Assuming you're hoping to contract at one firm or for one project for weeks/ months at a time, calculate your rate to take these into account and then assesss how viable it is. It should work out, but it's on you to ensure it does.

eg, a 6 month contract fee needs to cover 6 months of working and say 10-15 days paid leave afterwards, as well as NI and pension. In addition, as you might not have a new contract for exactly 15 days after the old one, perhaps build in an additional buffer. eg 6 month contract should pay you sufficiently that you can meet all your costs for 7 months, and then portion out the money accordingly.

Also, remember you have no protection with contracting so if they decide they don't need you, you may have to leave immediately.

Also make sure that you have counted on any additional costs such as if you need your own computer or software, phone etc.

It certainly is in my sector (law).

OP - go for it. I've done it and loving it.

@XelaM hi there. I am also a lawyer considering contracting. May I ask if it is generally possible to get jobs during school term time
and take summers off or is that just a dream?! Are your contracting roles in-house? Thank you.

OP I’ve done perm roles and contracting. Both have pros and cons.

Do make sure you do a very proper costing to compare like with like. For example it was only when I left a perm role I realised how expensive private medical insurance is! Stuff like sick leave - yes you can and should factor in a certain numbers of sick leave for stomach bugs, COVID etc but what you have risk on is longer term illness - what is you can’t work for 6 months? You can buy insurances but it is expensive. TBH IR35 does risk giving you the tax treatment of employment without the up sides. And of course you can be let go - you can as an employee too but at least there is employment protection, redundancy etc.

A friend of mine does similar to you and found the gaps between contracts were more than he anticipated. So also factor that in.

You can swerve politics to a degree but they are always there. And May be replaced by finding you are grinding hard doing more boring work but getting no credit.

One thing I underestimated running a PSC was the amount of admin involved, whether inside or outside IR35. For the admin you save by eg not having to be subject to an employee objectives/appraisal, there would be five times as much other stuff to do.

I would add this doesn’t have to be a one way door - I contracted for a few years then took another perm role. I would do it again as and when I want to leave my current role but do just bear in mind the size of cushion you want to have in place.

I am in a similar field to yours skillset-wise and did quit a perm role to go back to contracting (although my notice was 3 months). I resigned without having any offers, and it worked out very well. What helped me to feel more confident when resigning is doing a mock search for suitable contract roles and realising that I could definitely land something in a 3 months time.
Another thing to consider is the time of the year - March-May and September-October tends to be the best time to get contract roles. I have no regrets and I love contracting. My experience is that it is definitely less politics, more flexibility and less stress. Although you need to be comfortable with giving up ambitions about having a career in a traditional sense. That does not work for everyone but worth a try. You can always go back to being permanent.

Just a perspective - I have quit a job with nothing to go to before. I was in a teaching job and it was making me so miserable I had to leave asap before I made myself ill. I decided if I didn't find another job then I would go on supply teaching, which is a little like your contracting I guess. I found another job in the end so the supply wasn't needed, but I knew I'd be able to make some money that way if I needed to. So I think if you're unhappy and you know you can get some work contracting then you should do it.