Been offered a perm role - but what's this 20% in their calculations? Been offered a perm role - but what's this 20% in their calculations? - Page 2
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  1. #11

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    Quote Originally Posted by gypsymoth View Post
    Thank you - useful reply. Day rate is £675 - how does that change the equation in your mind? Id be getting 26 days holiday, healthcare, pension etc
    And 20 days suck pay !!


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  2. #12

    More time posting than coding


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    Quote Originally Posted by GhostofTarbera View Post
    Will make zero difference, just curious to why you would believe it would ?

    Chap down the pub tell you this?

    Agree this will make zero difference.

    But I do wonder, surely if you have to go perm somewhere then it's better the devil you know. I've been successful enough to get repeat business at 2 of my preferred clients. If contracting is killed and I had to go perm somewhere then of course I'd rather one of them......yes make sure there are clear differences between how/what you were doing contract vs perm

  3. #13

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    Quote Originally Posted by edison View Post
    Based on that day rate, I would be looking for a salary of around £90-95k plus benefits. If they are offering you 220*675 = 148,500, minus 20% = 118,800, I would seriously consider the perm offer just in monetary terms (assuming you are getting the usual benefits like bonus, car allowance etc.)

    If the HR person has any idea what they are doing, they will benchmark the new permanent role against data from specialist Reward Consultancies. I've done this exercise myself a lot this year with HR for a whole IT department. At that point, I would expect the Head of HR to say that £118k is too high a salary!
    Thats very very helpful. Thank you!

  4. #14

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    Quote Originally Posted by PTP View Post
    Agree this will make zero difference.

    But I do wonder, surely if you have to go perm somewhere then it's better the devil you know. I've been successful enough to get repeat business at 2 of my preferred clients. If contracting is killed and I had to go perm somewhere then of course I'd rather one of them......yes make sure there are clear differences between how/what you were doing contract vs perm
    Thanks

    The gap between engagements has been mentioned by a couple of colleagues accountants, and in principle, I can see the logic.

    Equally, if you're engaged as a contractor to do X role, the title of the new role (and the responsibilities) are pretty different, so I'd struggle to see how the HMRC could prove a case anyway.

  5. #15

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    Quote Originally Posted by gypsymoth View Post
    Thank you - useful reply. Day rate is £675 - how does that change the equation in your mind? Id be getting 26 days holiday, healthcare, pension etc
    Just curious what's your line of work? I assume IT consultancy or management in London?

    If I was you at that rate -20% I would take it having a salary over 100k is hard to come by with all the perks that come with it unless you are a director which usually is over 100k.

    Thanks

  6. #16

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    Quote Originally Posted by cosmic View Post
    Just curious what's your line of work? I assume IT consultancy or management in London?

    If I was you at that rate -20% I would take it having a salary over 100k is hard to come by with all the perks that come with it unless you are a director which usually is over 100k.

    Thanks
    work for one of the big consultancy firms (for my sins) just outside London. Its a unique set up.

  7. #17

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    Personally I got day rate *220 * 0.9. And 10% pension. And 10% guaranteed bonus. And they pay the NI on the bonus too.

    25 days holiday.

  8. #18

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    Quote Originally Posted by gypsymoth View Post
    Come on man! You know it’s a 20% reduction
    Do I? I thought ou industry involved precision and accuracy. If you meant -20% you should write it. Maybe I was supposed to guess that the 220 was in fact 37.

    So 80% of 220 x day rate. Seems fair. First of all, HR can pull any figure they like out of anywhere - and frequently do. If the total cost of employment were 25% above the salary, that would equate to rate - 20%.

    Seems very fair.
    Hmm. I'm beginning to suspect that you need to find all the packing the computer came in...

  9. #19

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    Quote Originally Posted by NotAllThere View Post
    Do I? I thought ou industry involved precision and accuracy. If you meant -20% you should write it. Maybe I was supposed to guess that the 220 was in fact 37.

    So 80% of 220 x day rate. Seems fair. First of all, HR can pull any figure they like out of anywhere - and frequently do. If the total cost of employment were 25% above the salary, that would equate to rate - 20%.

    Seems very fair.
    That's not my experience working in several large organisations. HR will usually have someone called a Reward Manager who is responsible for evaluating salaries and benefits for all staff. When I've had to create a new perm role, they benchmark the job spec against external statistical data to come up with a recommendation. Salary budgets and new headcount are very tightly controlled and managed in most places. Especially in the current climate, organisations are very reluctant to create new posts, hence the rigorous benchmarking and management approval process.

  10. #20

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    Sure. But at some point, someone will have decided that, for the op's organisation, 20% is the deduction. Others might choose 22%. Or 50%. There's no industry standard. That's from my experience in working in large companies for several decades...

    The OP's statement "Yet no one can explain that 20% deduction" is a bit odd. Yeah. No-one can, because HR have made it up. Whether they've made up by rolling dice, or in depth analysis of the industry is kind of moot. You'll be offered what you're offered - you've been given some kind of heads up what the offer will be, and it seems reasonable - all else is negotiation. Who cares where they got their formula from?
    Hmm. I'm beginning to suspect that you need to find all the packing the computer came in...

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