Arm being twisted to go Permie

[xux42]

I've been contracting for just over 2 years for an IT and Business Services Co. having spent many years working as a Permie Developer for the end Client, a Global Insurance Giant.
In the downturn they are whittling the contractor numbers down by not renewing, cutting rates and in a few cases, myself included, asking people to go 'Permie'.
I don't want to go Permie - I like not having appraisals! More seriously, I'm building up a nice pot in the Company and I don't want to wind it up and take the money out yet for tax reasons.
I know that my rate is lower-middle so with the on-costs of ERNI and 30% employer's pension contribution being Permie would cost them much the same assuming anything approaching a half decent Salary.
I've fobbed them off for about 9 months, but they are now dropping heavy hints that its Permie or nothing - Ie no renewal in March.
It looks like a case of "We want to keep you, but there's only money in the Permie Pot, not in the Contractor pot". Sounds stupid but I've been working in Corporates for 27 years and I know that managers are often hamstrung by directives from on high.
So what to do? I could just give in and become a drone again. There's probably a good 5 years work available. If I do, won't the Revenue start asking questions about 2+ years taking income via a Ltd Co.? (I have IR35 insurance though).
I could play along, try to get a contract elsewhere and if I do, walk away at renewal. This will leave them with a substantial piece of work half finished that I'm doing 80% of. Will they hold this against me?
Another option would be to negotiate a 25/26 hour 3 day week, get them to pay to update my skills and insist that I am permitted to do contract work for other clients during the other 4 days now and again. What's the chance of them agreeing to this? They don't have many developers left with the PC and Mainframe skills relevant to the site so I do have some leverage.
NB I am in the fortunate position to be able to take employment risks having 12 months living expenses put by.
All opinions, advice welcome.

[tim123]

I've been contracting for just over 2 years for an IT and Business Services Co. having spent many years working as a Permie Developer for the end Client, a Global Insurance Giant.
In the downturn they are whittling the contractor numbers down by not renewing, cutting rates and in a few cases, myself included, asking people to go 'Permie'.
I don't want to go Permie - I like not having appraisals! .

I've really never have understood this reason.

Quite apart for the fact that it's a once a year event, appraisals are supposed to work both ways. They are meant to be used by the company to provide you with targets, discuss your rewards for meeting those targets, and for you to get the company to remove the barriers that are preventing you from meeting those targets.

If the company use the process as a waste of time meeting (which my last permi company did) then why get hung up about it.

But if they use the process properly, it should work to your advantage.

tim

[MPwannadecentincome]

I've been contracting for just over 2 years for an IT and Business Services Co. having spent many years working as a Permie Developer for the end Client, a Global Insurance Giant.
In the downturn they are whittling the contractor numbers down by not renewing, cutting rates and in a few cases, myself included, asking people to go 'Permie'.
I don't want to go Permie - I like not having appraisals! More seriously, I'm building up a nice pot in the Company and I don't want to wind it up and take the money out yet for tax reasons.
I know that my rate is lower-middle so with the on-costs of ERNI and 30% employer's pension contribution being Permie would cost them much the same assuming anything approaching a half decent Salary.
I've fobbed them off for about 9 months, but they are now dropping heavy hints that its Permie or nothing - Ie no renewal in March.
It looks like a case of "We want to keep you, but there's only money in the Permie Pot, not in the Contractor pot". Sounds stupid but I've been working in Corporates for 27 years and I know that managers are often hamstrung by directives from on high.
So what to do? I could just give in and become a drone again. There's probably a good 5 years work available. If I do, won't the Revenue start asking questions about 2+ years taking income via a Ltd Co.? (I have IR35 insurance though).
I could play along, try to get a contract elsewhere and if I do, walk away at renewal. This will leave them with a substantial piece of work half finished that I'm doing 80% of. Will they hold this against me?
Another option would be to negotiate a 25/26 hour 3 day week, get them to pay to update my skills and insist that I am permitted to do contract work for other clients during the other 4 days now and again. What's the chance of them agreeing to this? They don't have many developers left with the PC and Mainframe skills relevant to the site so I do have some leverage.
NB I am in the fortunate position to be able to take employment risks having 12 months living expenses put by.
All opinions, advice welcome.

Take the big picture longer term view - where do you want to be in 5 to 10 years?

If still happy to be doing the same thing or you will be running your own business then try to remain as a ltd co. after all you do not have to wind up the company if you start as a permie just leave the dosh in the company account - you might still work as a permie for a year and look for contracts again in the future or you could as you say just look for other contracts now.

If you want to get into management etc then take the permie job provided they can put it in writing that you will be given training and opportunity to do work which will expand your skills for you to progress to management in the future.

Good Luck!

[Doggy Styles]

You probably need to ask yourself - are you really a contractor, or a permy in all but name?

Being a contractor is not just doing the same, long-term secure job for more money. The extra money a contractor earns covers the insecurity, overheads, and bother of looking for work. Contractors move on all the time.

Of course, if there is no other work about in these troubled times, you can take the pragmatic decision to go permy to keep the wolf from the door.

Mind you, you have to question why the firm wants you permy when it could get rid of you cheaply as a contractor if it came to the crunch.

Best wishes!

[Jog On]

I've really never have understood this reason.

Quite apart for the fact that it's a once a year event, appraisals are supposed to work both ways. They are meant to be used by the company to provide you with targets, discuss your rewards for meeting those targets, and for you to get the company to remove the barriers that are preventing you from meeting those targets.

If the company use the process as a waste of time meeting (which my last permi company did) then why get hung up about it.

But if they use the process properly, it should work to your advantage.

tim

Isn't it also where they appraise how much of a salary increase you do or don't get based on how well you've met your objectives?

Last time I had one I met all my objectives and got the maximum whopping 4%

Hmm go perm or sign on... could make for an interesting poll!

[MPwannadecentincome]

Isn't it also where they appraise how much of a salary increase you do or don't get based on how well you've met your objectives?

Last time I had one I met all my objectives and got the maximum whopping 4%

Hmm go perm or sign on... could make for an interesting poll!

Its not just about targets and salary, its also about gaining recognition for promotion - so pushing the employer to set / agree targets that make you more valuable to the organisation and towards gaining a promotion - if that is what you want of course.

[jmo21]

Its not just about targets and salary, its also about gaining recognition for promotion - so pushing the employer to set / agree targets that make you more valuable to the organisation and towards gaining a promotion - if that is what you want of course.

that's one of the main reasons i became a contr....ahem....started my own consultancy company

anywhere i have worked permy that have used these kinds of systems have been political nightmares

[tim123]

that's one of the main reasons i became a contr....ahem....started my own consultancy company

anywhere i have worked permy that have used these kinds of systems have been political nightmares

I agree with what all three of you say.

But none of this make the meeting itself the problem.

If you want to develop managerially OR technically, the appraisal meeting is the place to express this interest and plan the road map to achieve it.

If you don't want to push your career forward, you just say so at the appraisal.

OTOH, if you do want to push your career forward and the company don't have (or don't use properly) the appraisal process, you are stuffed. Unless, that is, you are the manager's buddy (and I am sure we all know of cases where the manager's buddy did get promoted even though they were technically useless).

tim

[Beefy198]

Only you really know what to do. This forum can only help so much.

[MPwannadecentincome]

I agree with what all three of you say.

But none of this make the meeting itself the problem.

If you want to develop managerially OR technically, the appraisal meeting is the place to express this interest and plan the road map to achieve it.

If you don't want to push your career forward, you just say so at the appraisal.

OTOH, if you do want to push your career forward and the company don't have (or don't use properly) the appraisal process, you are stuffed. Unless, that is, you are the manager's buddy (and I am sure we all know of cases where the manager's buddy did get promoted even though they were technically useless).

tim

Quite - and there are 101 reasons why the appraisal system is cr** in big companies - but that is the subject of another thread!