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I've been searching through the internets for advice, but I'm still at square one.
I currently have a Masters in I/O Psychology and get paid a decent salary, but I feel like I'm underpaid a bit. I didn't know this until recruiters started contacting me with offers well above what I'm making. My ears perked a little when I was recently recruited by Google, though this position isn't with them. But it made me realize that my skill set is in demand.
The contract gig is a 12-month engagement and pays 27% more than I currently make. There's an option to extend at the end, though I know I can't hang my hat on that. The intriguing part is the work that I'll be doing.
My current role is staff under a manager. She sets the tone and vision for the team and we complete the tasks. This contracting gig would allow me to really start a function on my own and stretch myself out of my comfort zone. The projects lined up are MUCH more extensive and engaging than what I'm doing now.
My hang up is leaving employer-subsidized health care, PTO, and 401K. My employer has an excellent benefits package, so it's hard to leave it. Also, the security of a full-time position (though I work in an at-will state).
So do you guys think that the bump in pay and responsibilities is worth the loss in full-time benefits? I'm single without a family, FWIW.
That 27% bump in pay is going to be eaten up by the benefits that are now going to come out of your paycheck directly. With a 27% increase I would evaluate the position as if the take-home pay is the same.
I don't know the specifics but generally there's no paid time off for anything, so you need to do stuff like save like crazy and add the pay that you're going to miss out on to the expense of a vacation. So your 2 week trip is going to cost you 2 weeks' pay plus you're going to have to live on something for a couple weeks after until the checks start rolling in again (for instance).
You're single so that's good in terms of healthcare expenses (that will come out of your paycheck).
Being an older guy with a family my tendency would be to hold on to a full-time job like a badger, but that's not where you are in your life.
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The lack of Medical benefits, PTO and 401k match will eat up that 27% very quickly. Add to that fact that you'll be out of work at the end of the contract, and to me this is an easy no.
Going from stable full time work to contract is insane. Don't do it.
To add to that, I don't know what your field is like but I work in the pharmaceutical industry and once you start contracting, usually as the result of a layoff, it's difficult to get hired from contractor back to a full-time position (although it might more easily happen within the company you're contracting at). I think people do a lot better going from full-time to full-time so if you like the company, it might be better wait for a full-time position to open up.
I know the independent contract world well and the employment before that, unfortunately what has been said up to now is absolutely right. The benefits are costly, that point made several times, but the main point to understand once you go independent: You become like toxic waste to some employers, I really don't see why, but it is so very true. They will never touch a former independent. Some/many employers are that way. So extremely hard to go from independent back to W-2, many just will not hire you no matter what, even you can solve something they can't find anyone in the world. Some of it is some sort of jealous anger, other because they think you might infect their employees with a sense of freedom and they want sheep who are bound and not free, and the rest are because they are mandated by corporate level to never do that (I can assure you many corporate put it out to never hire a former independent). Take my word, most employer will never touch you again when you go out some years doing independent work.
Going from stable full time work to contract is insane. Don't do it.
Going from stable but insane work to less stable but not insane contract work is right thing to do and I've been doing it for 8 years straight and offered full time and I always turned it down.
The only thing in the way is Obamacare, it's the worst piece of law ever created by a democratic government.
Interesting feedback. I'll be a W2 contractor, if that makes a difference. While the benefits of full-time employment are cheaper and better, with the ACA options, I'll only be spending an extra $150 per month on benefits. Sure it cuts into that 27% increase, but not as much as I thought.
I'm mainly looking at the work I'll be doing and thinking about how it might catapult me to another level in my career. Interesting feedback about former contractors being toxic to corporate employers. Hmmm
A w-2 based contract job is not really an independent so you still are an employee. Any potential future employer will see you still as an employee.
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