Economics of contracting

[Peter Gibbons]

My salary before I started contracting was $42K/year. My first contract paid $42/hour.

My calculation was simple ( and very naive ): If I manage to work six months a year I will break even.

Recently a colleague was offered to switch from $60/hour contract to $80K FTE. He declined.

Clearly it was better to be contractor before, but even now FTE pays quite a bit less.

I know a few people that have been contracting for over 10 years.
When the times were really difficult they switched to FTE for year or two and now they are back contracting.

I got an e-mail from a recruiter saying that the market is 'heating up' and they expect September to very 'hot' month.
Never got an e-mail like this before.

I am concerned that this is the peak and then we may get the double dip ...

[The Original Henry]

What's the point of getting hired in September when they can fire you in October?

When contracting gets slow I either take an extended vacation or work on a personal project.

[The Gorn]

What's the point of getting hired in September when they can fire you in October?

When contracting gets slow I either take an extended vacation or work on a personal project.

I agree with that.

Now, when you take an extended vacation or work on a personal project, don't let the "unemployed voluntarily, DO NOT HIRE, must be a f***ing weirdo" cooties get smeared on you. As has happened to me.

All human needs must be spun for acceptability to HR  .

[Richardk]

That's the beauty of owning your own company, I'm never "unemployed" on paper (and in my own mind  ).

I learned that two can play the game and I don't really care what they think of my "pet projects" since what's the difference? I've seen some FTE sit around and coast because the company didn't want to let them go (yet) but didn't have any significant work for them. Or the in-house consultant that's working on who knows what yet doesn't have a paying client or the guy that's on the bench but still "employed".

I concluded that they are no better than me but why should I get dinged for not having a 'deep pockets' employer?

I also don't say much about my company's "internal projects" since that's a conflict of interest or that I have a nondisclosure agreement in place. Hey, it works for them so why not for me?

Also I once considered joining another firm so I told them about all the "cool things" I was exploring so I didn't look like some unemployed chump looking for a job. They told me I was a great fit and an offer would soon be on its way. The offer never came but I found a new competitor in just the things I was exploring. Hum, what a coincidence. 

[The Gorn]

When you look for hourly contracting work or even some project work, it doesn't matter how you "cover" and explain unbilled time off. Hiring parties still see time taken off between clients as a negative, a character flaw, a reason to not consider, an indication that you were unmarketable and therefore they don't wish to consider you further.

When one looks for a staff augmentation role, whether employee or contract, you're always judged. Harshly and always in the worst possible light.

[Richardk]

True enough and I've done both, list "in-house" projects under the company's name and had "time off". So my "employment" is continuous with managing my company while I also work on assignments from time to time.

I've also changed my format to list "assignments of interest" and make it clear that this is not a complete chronological listing of gigs but ones that are relevant to the client.

I also recall one interview that was going nowhere because of the "time off" to which I replied that I was independently wealthy and was exploring other avenues that had nothing to add to my consulting resume. Partly true and he hated me all the more. 

Needless to say, all of this drives HR and brokers nuts. This is a functional or combination type of resume which is a trade off since my pruned chronological resume is around a dozen pages. Even for brokers that's getting long but it stays if it gets gigs.

[Peter Gibbons]

That's the beauty of owning your own company, I'm never "unemployed" on paper (and in my own mind  ).

This is the way I think too.

On my resume I have listed my own company as the client for the last 4 years. The reason:
I created my product during that time and did work for two small companies that I don't want the agencies to know about.

When I have worked for well known company - I put it on the resume.

[The Original Henry]

I replied that I was independently wealthy and was exploring other avenues that had nothing to add to my consulting resume.

That could get you blackballed entirely. Hiring people want you to be desperate so they can abuse you. They want to know that you have a big mortgage, a car payment, and a hungry family at home as motivators to make you show up every morning and receive your whippings without complaint.

[Richardk]

Yes but like I said it was already going nowhere.

Getting balckballed or blacklisted (?) isn't something I considered at the time. I guess sometimes it doesn't matter if the company isn't a place that you'd consider again.

[Peter Gibbons]

Re: Blacklisting

I am thinking about starting to blacklist companies as well.

Over the last few years I had six interviews with a bank whose name rhymes with 'shitty'.

They never had the courtesy to let me know what happened with their selection process.

[Peter Gibbons]

Re: Managers like desperate people

That's depressing. Luckily there still managers out there who just care to get the work done.