Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Backstory: I am 3 months into a 1 year contract with 4 Optional years.
Story: I was talking with a coworker and the coworker mentioned that i need to think about retirement and that I should also put money away in savings. He also said that contract jobs are not certain and that if a permanent job within the company came up that I should take it.
My manager came into the room and I asked my manager if I should be worried about the contract he said to "not be paranoid". I asked why the other guy said that he said "it was a blanket statement" and "we are not threatening you". He said that contract jobs are unstable. He did say that my contract at the end of the year would be renewed at the end of the year and the next 4 renewals "in all likelihood". He said that "I would not fault you for taking a job that is more permanent and offers better benefits for retirement.
Has anybody been in this situation or how would you take this?
Unless your particular contract has a clause that guarantees a set time (i.e. the contract is 1 year with a penalty for early cancellation) your contract is subject to cancellation at any time.
Been contracting over 15 years, because my role has zero job postings for FTE roles.
No job is guaranteed, even in a so called permanent job, they can fire you whenever they want anyway - as long as it's not for a discriminatory reason, they don't really even need a reason.
on the other hand, it sounds like they aren't offering anything in the way of retirement benefits? Most jobs these days don't have pensions anymore, but esp. with bigger companies, they do offer a 401K and generally some employee contribution to that. Not necessary a huge amount, often in the 3 to 5% range. So if you go an offer for a job that provided those kinds of benefits, you'd have to compare salaries - if the contract position paid enough more so that you were able to save more anyway, then maybe it's not worth it to switch. But if a different job paid a better salary and then had a 3% 401K match on top of that, as your manager said, it would be hard to blame you for take a deal that was better for your own future.
No job is guaranteed, even in a so called permanent job, they can fire you whenever they want anyway - as long as it's not for a discriminatory reason, they don't really even need a reason.
^^^^Well, pretty much this. This is the truth--there is no job that is absolutely guaranteed whether you are a contractor or a full-time employee on the company's payroll. The majority of states are at-will so that means the employment partnership can be severed at any time for any reason by employer or employee.
I've seen a lot of good FT employees lose their jobs for no particular good reason over the years; it happens all of the time. I've lost 2 full-time jobs due to no fault of my own-one when the company decided to move manufacturing overseas and most recently when the company was bought out. I've also been a contractor in the past and have had contracts renewed and have had instances where the initial contract terms held and it did not get renewed.
Based on your boss's comments, it sounds like they are happy with your work and your co-worker was just stirring the pot. Contracting was always enjoyable to me but I got out of it in my mid-30s since I needed to get serious about 401K plans and I knew that settling down with a full-time company wasn't going to get any easier as I got closer to 40 Otherwise, I would still be contracting if I were single and younger!
You can always conduct a clandestine job search for a FT opportunity in your field to see what it out there.
No job has a guarantee of perpetual employment, but contract jobs not only have the same level of uncertainly, but an additional one because contracts can be canceled or end.
In that sense a FT permanent status job is less uncertain, because you have removed one variable, namely the possibility if the contract ending.
Saving for retirement is important. We can debate the correct amount you should save, but practically speaking people are more likely to save if your employer has a program set up, and a 2-5% match, or more, makes your investment grow much faster.
All in all, FT jobs with benefits are generally considered superior to contract jobs. That doesn’t mean contract jobs are inherently bad, you simply need to weigh the pros and cons.
Backstory: I am 3 months into a 1 year contract with 4 Optional years.
Story: I was talking with a coworker and the coworker mentioned that i need to think about retirement and that I should also put money away in savings. He also said that contract jobs are not certain and that if a permanent job within the company came up that I should take it.
My manager came into the room and I asked my manager if I should be worried about the contract he said to "not be paranoid". I asked why the other guy said that he said "it was a blanket statement" and "we are not threatening you". He said that contract jobs are unstable. He did say that my contract at the end of the year would be renewed at the end of the year and the next 4 renewals "in all likelihood". He said that "I would not fault you for taking a job that is more permanent and offers better benefits for retirement.
Has anybody been in this situation or how would you take this?
No job is guaranteed, even in a so called permanent job, they can fire you whenever they want anyway - as long as it's not for a discriminatory reason, they don't really even need a reason.
Isn't anyone going to drone on about at-will, like it actually has anything to do with this thread? I guess this thread is too new. Give it another day or two and we will get the at-will speech followed by the "NEVER BURN YOUR BRIDGES" one.
The OP is taking a conversation about essentially nothing seriously with people that don't matter. People who are "lifers" at a company like to talk to the contractors as if they are superior when in reality they simply don't have that sharp of a skill set to be hired as a contractor or highly paid consultant. Then they like to drone on about benefits, but leave out the fact they don't get their bonus because of company performance where each hour the contractor is working it is guarantee and paid in advance, and time and a half for overtime.
The IRS takes the position that an independent contractor is an employee after a year UNLESS that independent contractor has several clients. Your contract will be terminated without regard to the quality of your services. If they thought highly of your work they would convert you to an employee.
Contract jobs are unstable. I'd be terrified. If they decide not to renew, there is nothing you can do. They may intend to renew, but who knows what could change. I don't think I would ever even accept a contract job. Good luck and best wishes! I hope you're one of the lucky ones, but still sounds like you have a temp/4 year job that comes with no retirement benefits. I would have an issue with that. Why would you work there is someone else offered a permanent solution with benefits?
Contract jobs are unstable. I'd be terrified. If they decide not to renew, there is nothing you can do. They may intend to renew, but who knows what could change. I don't think I would ever even accept a contract job. Good luck and best wishes! I hope you're one of the lucky ones, but still sounds like you have a temp/4 year job that comes with no retirement benefits. I would have an issue with that. Why would you work there is someone else offered a permanent solution with benefits?
Terrified of what exactly? A friend of mine after 12 years as a regular employee was called into a meeting and told this is his last day, it was a layoff. That you think there are jobs with actual security is a myth. Another friend of mine took a job at a large company, and after a year they closed down his department and let 30 people go. Others I know have been W2 contractors working through staffing firms going on 4 and 5 years.
You want to not be terrified? Then develop real skills that are in demand and keep up on them. Yes, on your own time and with your own funds. Otherwise you are a sitting duck to be let go at any time, and will always remain in fear.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Otherwise, I would still be contracting if I were single and younger! 
