Quantifying Benefits for Contractor vs Employee

[ExtraSlow]

I forget what kind of work you do, but if you are any kind of professional or perform any "business" function, I think you would need to disclose the fact that you have other ongoing paid employment to your current employer in most cases. It's up to them how much detail they request.
If you provide unskilled labor, or are not privy to commercial or technical information, that's different.

[ThePenIsMightier]

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I forget what kind of work you do, but if you are any kind of professional or perform any "business" function, I think you would need to disclose the fact that you have other ongoing paid employment to your current employer in most cases. It's up to them how much detail they request.
If you provide unskilled labor, or are not privy to commercial or technical information, that's different.

If they're not in directly conflicting fields, I don't see the need to disclose. With that being said, many/most/all standard employment agreements have a clause saying words to the effect of "we own you 8-4, M-F". So you can't be double dipping and you certainly can't use their provided resources to do work for someone else.
Outside of those hours, you own you and you can do whatever*** you want.

*Except heroin.
**Except choosing to not get vaccinated.
***Except publically stating that gender is biologically determined.

[Nufy]

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I forget what kind of work you do, but if you are any kind of professional or perform any "business" function, I think you would need to disclose the fact that you have other ongoing paid employment to your current employer in most cases. It's up to them how much detail they request.
If you provide unskilled labor, or are not privy to commercial or technical information, that's different.

EI&C Engineering Consulting.

I'm gonna talk with all parties next week. If no one objects, it could be a busy spring.

[ExtraSlow]

Disclose and giv'er.

[ThePenIsMightier]

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Disclose and giv'er.

Let's say I was hiring a DeltaV programmer as an employee. I wouldn't hire someone as an employee if they told me that they:
a.) Spend another 40 hours a week (allegedly outside of my business) hours doing programming for their own company.
b.) Per above, potentially show up to my work already burned out.
c.) Per above, definitely won't try to steal my customers even though he could undercut me by >40% and come out ahead.

But others may be different...

[killramos]

When I was consulting I certainly did not advertise to my primary contract that I was doing work for a potential competitor on the side.

[Nufy]

I didn't either but they knew. As long as the quality of work doesn't suffer who cares...

[npham]

Why take the employee role if you want to keep contracting? Seems like this could easily go sideways at any point. Perhaps that's why they offered you a salaried role, so you would stop contracting out to other companies. As soon as you're not available because of your side jobs, you're going to get burned.

[ThePenIsMightier]

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Why take the employee role if you want to keep contracting? Seems like this could easily go sideways at any point. Perhaps that's why they offered you a salaried role, so you would stop contracting out to other companies. As soon as you're not available because of your side jobs, you're going to get burned.

But you can control how busy you choose to be on side jobs as a contractor.

[Nufy]

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Why take the employee role if you want to keep contracting? Seems like this could easily go sideways at any point. Perhaps that's why they offered you a salaried role, so you would stop contracting out to other companies. As soon as you're not available because of your side jobs, you're going to get burned.

I am helping a friend / old colleague with some small project work. It is never intended to be full time and now that I have switched to an employee I want to be sure that things are ok from all fronts.

The full time position will have my 100% attention during working hours...The side stuff is evenings and weekends. Maybe 8-10 hours a month.

[ThePenIsMightier]

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I am helping a friend / old colleague with some small project work. It is never intended to be full time and now that I have switched to an employee I want to be sure that things are ok from all fronts.

The full time position will have my 100% attention during working hours...The side stuff is evenings and weekends. Maybe 8-10 hours a month.

Oh, that's fuck all. Don't tell them. It's none of their business.
Good for you for helping them out after!

[JPB]

As a data point, I'm just going back to staff after 6 years as a contractor. It is with one of my "main" clients who I have a current contract with. The differential agreed on is 24% off to go to staff plus 4 weeks vacation (~8%), and I am now bonus eligible so if I bust ass I can close the gap a bit more. I am wrapping up my other open contracts by year end, probably won't take on much more as my utilization is 100%+ already.

One of the main drivers for me is I am travelling for them a ton for the next couple of years and it was challenging to put a "risk premium" on increasing my COVID exposure. This way I have sick days and top-up if I were to be out of commission.

I can also reduce my personal E&O insurance as I'll be under the employer's insurance, which is a noticeable savings.

[holden]

Question for those who have done contracting. When the contract has a term (i.e. 6 months, 1 year), there isn't really anything preventing the client (employer) from ending the contract early is there? Have you seen severance payouts written into terms of contracts?

[ExtraSlow]

No. It's polite to give a week or so notice but not required. I wouldn't allow any severance terms.

[npham]

I've seen severance payouts but it was for highly specialized and highly in-demand people. Anything is possible but if you are just an engineer off the street, there's no shot you're getting the full contract amount for being let go early due to lack of work. They will just move onto the next person who doesn't give them as much grief.

[holden]

Thanks. I'm considering a PM contract role that has a term of 1-year. The rate is about 50% higher than my base pay and probably about 35% higher than my total comp if I factor in LTIP, STIP, PTO, sick days, stat, etc.

The biggest issue in my mind is that the contract could be ended at any time (more due to a downturn/layoffs in the org, rather than not needing the role I would imagine). I know I could also be laid off at my current staff role, but at least I've been here a decade plus and would get a severance.

[ThePenIsMightier]

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Thanks. I'm considering a PM contract role that has a term of 1-year. The rate is about 50% higher than my base pay and probably about 35% higher than my total comp if I factor in LTIP, STIP, PTO, sick days, stat, etc.

The biggest issue in my mind is that the contract could be ended at any time (more due to a downturn/layoffs in the org, rather than not needing the role I would imagine). I know I could also be laid off at my current staff role, but at least I've been here a decade plus and would get a severance.

Yep. You need to quantify that risk in dollars.

[ExtraSlow]

What would your plan be after the year? Are you planning to have other clients, or will you be a PSB to this company? Lots to consider.

[pheoxs]

35-50% higher means you effectively have 4-6 months severance in the bank at the end of your first contract year. If the project has a reasonable outlook that it wouldn't just be one year I'd probably take it. If the project is a limited scope like a retrofit that is planned to only be the year I'd likely pass.

[holden]

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What would your plan be after the year? Are you planning to have other clients, or will you be a PSB to this company? Lots to consider.

I don't think I would do contracting long-term, at least not at this point in my life.

I would say there is equal chance of the client extending, taking me on full-time or ending the contract. I would probably go back to looking for a full-time role.