Leaving a job without anything to go to? Contractor?

[Meena43]

I'm trying to work out the best thing to do. My current company is not upping my rate even though I'm paid below my market value. Agencies are saying my 1 month notice period will stop me getting roles. Do I resign and hope to find something ASAP but also potentially shock the company into increasing my rate? I'm nervous in case I don't find a job though my friends in recruitment say at the very worse case, I'll get what I'm on now. Any tips or horror stories from other contractors?

Or would it be cocky of me to say to them that I will only sign a renewal but I'll work to a reduced notice period?

I've never had an issue with a month's notice because onboarding usually takes a couple of weeks anyway, to getting a new dbs, referencing etc. I just say what my end date is. Recruiters sometimes try and pressure an earlier start but it's rarely coming from the end client.

Generally I make sure I've got a healthy between contracts fund and leave money in my company to take out during gaps.

I've gone from one contract to another, worst gap was a year during covid, 2-3 months is usual.

I think only once have I increased rate during a renewal, I don't take jobs where I'm not happy with the rate.

What sector do you work in OP?

I would add to the good advice above that LinkedIn is your friend, especially if you want to contract/freelance long term. It's where your clients are. Mark Gaisford and Jason Squires are worth following for B2B lead acquisition tips.

This allows you to avoid agencies (who you can't guarantee will give you work that they get, and will take a cut).

Your choice is then self-assessment tax return each year, or register yourself as Your Name Limited and pay yourself through PAYE. The latter is what I did and it meant I could reclaim VAT on business expenses.

Best of luck!

I'm so sorry, I've just re-read your post and realised you're already a contractor. Please do ignore everything I said!

Thanks @jay55 @BookwormDadUK I would like to stay where I am but only on an increased rate. I thought reducing my notice period may trigger them into thinking I will leave as I believe at present they don't think I am going anywhere. I have been here 4 years now with one small rate increase despite being renewed every few months.

@BookwormDadUK I'm a contractor inside IR35. I did do the limited company thing once but I really wasnt well organised about it and made nothing extra. This job was meant to be short term.

It's not an inspiring solution but in my experience the best bet is a pay bump is to get a competing offer. Best case, your current company counter-offer to match it, worst case you resign and accept the offer.

It's a shame dialogue doesn't tend to work on its own!

Your market value only means something if there are available jobs at that rate in the vicinity.

Do the agencies have roles they can show you if you didn't have a 4 week notice period ? I'd ask to see those before taking any big steps.

Ahh if you've been there four years then of course a rate negotiation is due.

Update: after being ready to ask for the reduced notice period as opposed to leaving, the company beat me to it with a very decent perm offer and are potentially offering more. It won't be on par with the contract market but it's perm and maybe the stability I could do with. I really appreciate this site as I felt uncomfortable to discuss with others but this made me think I could/should fight for myself.

Good news on the perm offer. How does it look when you add in benefits like pension contribution, paid leave etc?

Now is the time to negotiate for more money.

That's brilliant news OP, they clearly value you. Very best wishes.

@HellonHeels I need to be careful in case I'm outing here but actually I'm really not sure how to calculate all that part. There is a pension, health insurance and bonus scheme plus holiday and sick pay. I never take leave usually as I couldn't afford to lose the money. I need to find out if the bonus scheme will pay out ever so I'd prefer to get a better base salary.
Also I know I'll never get another increase here so I want to negotiate well!

I think there are online calculators that will help work out the benefits compared with contractor rates.

https://www.contractorcalculator.co.uk/contractingtopermanentcalculator.aspx

I pleased for your update, came on here to say my DH is on a loooooong (squeaky bum time) break between contracts and it's not easy out there

Most reasonably sized employers will have annual pay rises for permanent employees, whereas contractor increases- unless the demand is really buoyant- are not factored in, instead they sometimes try to reduce them.

I think the next year or so could be tough in the contract market as many big companies are trimming staff, so now is a good time to go permie - with the right renumeration in place of course.

@Quitelikeacatslife Yes, thats my concern as i dont have the backup funds to tide me over. My friend has been out of work for several months now and her confidence has plummeted. Im sure i would have found something but there was always that worry.

That's very wise. I've a family member who is salaried and has qualified for a bonus for the last 3 years but, because of 'difficult financial circumstances' the company hasn't paid bonuses. (Well, not to people in some areas of the FS company, the traders etc. are fine for their bonuses.)

Good luck and sounds like a great position to be in. Perm employment right now seems sensible if you can make the numbers work.
My contract ended last week and as mentioned above, lots of companies are reducing. However I've been contacted by about 6 recruiters over the past week and it looks positive for the end of January. My work is a but nuanced so that usually helps.

Keep us updated.

Congrats on getting the perm offer. Hope it all works out.