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Old 01-30-2012, 06:34 PM
 
Location: 98034
6 posts, read 19,549 times
Reputation: 10

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Hi,

It's my first time being a contractor. Originally, i was given 6 months. So when I reached my 6th month, I asked them, what happens now? They just told me to keep working.

I have a feeling that right at that point I should have asked to renegotiate my contract. So now im on my 9th - 10th month as a contractor, they have told me I am doing great and told me to keep it up.

So 3 weeks ago, I sent an email about this matter to my Contract Program Manager. She said we should talk about this in person. I agree. It has been 3 weeks but no date yet. So I sent her an email again, maybe she just forgot.

Now my question is, to everyone that has been in this situation, what would be the best thing to do? renegotiate or just try to get a new job? because technically, I am not in contract anymore with them. But if ever I get a change to reneg my contract, how much is a normal renegotiating pay increase?

Thanks you guys!
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Old 01-31-2012, 09:24 AM
 
Location: Annandale, VA
9,447 posts, read 7,593,764 times
Reputation: 6000
There is no pay set increase for contract positions. Your "contract" is just for the amount of time they have agreed to your labor. Your decision was probably for the time (stability) of the position. For a long-term contract the rate is lower. For short-term ( < 3 months), the rate is usually a lot higher.

You should remember that if they wanted to convert you to an employee your rate converted to salary would be a whole lot LESS.
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Old 01-31-2012, 10:41 PM
 
Location: 98034
6 posts, read 19,549 times
Reputation: 10
What? If they convert me to permanent my pay would be a lot less? Wow! I wanted to be permanent but i guess not anymore. Is this true for all companies?


So, i just met with my contract manager today and she said to get a lay out of all my achievements so i did and she said she will talk with the company manager about getting me a pay increase. We'll see how it goes. And thanks kevinm.
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Old 02-01-2012, 03:58 AM
 
4,383 posts, read 8,676,849 times
Reputation: 2331
Quote:
Originally Posted by pmarlowe View Post
What? If they convert me to permanent my pay would be a lot less? Wow! I wanted to be permanent but i guess not anymore. Is this true for all companies?


So, i just met with my contract manager today and she said to get a lay out of all my achievements so i did and she said she will talk with the company manager about getting me a pay increase. We'll see how it goes. And thanks kevinm.
That's not true. The pay would probably be about the same. Instead of paying the temp agency fees they would pay your benefits instead.
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Old 02-01-2012, 06:37 AM
 
14,357 posts, read 16,276,263 times
Reputation: 12870
As a contractor, I asked for increases several times and got them. Once I got 9% increase! If you never ask, you will never get an increase.

Everything is negotiable. If a middle man(agency) is paying you, they might have some room in their spread to give you an increase without them having to go to the client to ask for an increase. However, they might go to the client anyway to ask for an increase.

As far as perm, state you are open to that and ask what the rate/benefits would be. You can compare and decide. In one job I had, the pay was equivalent perm versus contract AFTER you take into acct the paid time off and medical insurance that is paid on your behalf for the perm job.

Another contract job I had, the offer for perm work was much less than contract work AND they expected salaried workers to clock 55 hours per week (I was making more money as a contractor working 40 hrs a week). For that job, I stayed contract for several years but did ask for (and got) some increases in the hourly rate as a contractor. In that job, almost all the contractors chose NOT to go perm.

Some perm jobs you can negotiate the salary higher but some have a ceiling and they will usually say "uncle" when your negotiation goes above that ceiling.
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Old 02-01-2012, 08:49 AM
 
Location: Annandale, VA
9,447 posts, read 7,593,764 times
Reputation: 6000
Quote:
Originally Posted by sware2cod View Post
As a contractor, I asked for increases several times and got them. Once I got 9% increase! If you never ask, you will never get an increase.

Everything is negotiable. If a middle man(agency) is paying you, they might have some room in their spread to give you an increase without them having to go to the client to ask for an increase. However, they might go to the client anyway to ask for an increase.

As far as perm, state you are open to that and ask what the rate/benefits would be. You can compare and decide. In one job I had, the pay was equivalent perm versus contract AFTER you take into acct the paid time off and medical insurance that is paid on your behalf for the perm job.

Another contract job I had, the offer for perm work was much less than contract work AND they expected salaried workers to clock 55 hours per week (I was making more money as a contractor working 40 hrs a week). For that job, I stayed contract for several years but did ask for (and got) some increases in the hourly rate as a contractor. In that job, almost all the contractors chose NOT to go perm.

Some perm jobs you can negotiate the salary higher but some have a ceiling and they will usually say "uncle" when your negotiation goes above that ceiling.

Agreed that it depends on the company. Where I am currently employed very few accept the money the company is williing to pay to convert so they are let go immediately.
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Old 02-01-2012, 11:41 AM
 
Location: 98034
6 posts, read 19,549 times
Reputation: 10
Thanks you guys. I am very new at being contractor. Now that i have been contract for almost a year, i think i didnt get a good deal for compensation. I am thinking to ask got a 20% increase. Right now i am in the $2X.00 range. Or is 20% too much for a pay raise? What would be an ideal request? Actually i dont even know if i get to ask or they make the decision on how much increase i get.
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Old 02-01-2012, 12:10 PM
 
14,357 posts, read 16,276,263 times
Reputation: 12870
Quote:
Originally Posted by pmarlowe View Post
Thanks you guys. I am very new at being contractor. Now that i have been contract for almost a year, i think i didnt get a good deal for compensation. I am thinking to ask got a 20% increase. Right now i am in the $2X.00 range. Or is 20% too much for a pay raise? What would be an ideal request? Actually i dont even know if i get to ask or they make the decision on how much increase i get.
What is it that you are doing, and what is the market rate in your location for this job?

20% is a big push at once. Probably isn't going to fly. Usually you ask by $x/more per hour. Maybe ask for $3 or $4 more per hour. They will probably come back with $2 more per hour. It is common for them to come back with less then you originally ask. It is a negotation process.

These days, it's probably harder to get increases since companies seemed to have tightened their belts the last few years. if perm folks are not getting increases, they might not be too keep on doing this for contractors. A lot depends on the spread that your 3rd party firm is keeping. They try to get a high rate from the client, and pay you as little as they can, then they keep a bigger spread. It's all a game.
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Old 02-01-2012, 03:01 PM
 
Location: 98034
6 posts, read 19,549 times
Reputation: 10
thanks sware2cod.

I am in the avionics field. I was hired as a drafter/designer but 6 months later within my contract (which is also the original lenght of my contract) started getting engineer level work (which i dont mind). I was thinking the same, just to ask $4 more.

I spoke with my contract manager and it sounds like i have a good chance of getting a pay increase. It's just a matter of how much and if they will meet me at the top of my request or halfway.

I think when the contract is over, the contractor should re-sign the contractor into a new contract, if he/she is doing great or if the company likes him/her thus making his value (pay rate) higher. Because as how I understood, the recruiter that got me in gave me this base pay based on my experience, which during the past 11 months of being a contractor with them, I have proven that I have exceeded what they (the recruiter) and the company have expected out of me. Heck, I had minimal experience on the software they use (CATIA V5) and was Rusty on AutoCAD but right now (not trying to be cocky or anything) there are 2 AutoCAD experts in our dept. One is a Senior Engineer, and below him is me. Perm employees ask me questions. Perm employees that have been there for more than I have. As for Catia, they hired a new guy with experience in CATIA V5, certified trained and everything... Sad to say, I teach him how to do certain stuff.

Im starting to rant. Sorry. But yeah, I think I will just ask for a $4 increase.
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