Perm vs FTC

[SussexSeagull]

TBH FTC and, so called, Permanent roles aren't as different as they used to be in the current climate.

[rocktronAMP]

Had an interesting chat with an old client last week and I'm beginning to second guess myself - was hoping for your thoughts as I still have time to decide.

An old client (large multinational I've had a handful of great previous engagements with) approached me, they're starting up a new company in the group and want me to run a key function (which is something my CV would benefit from)

But there's a hitch - they can't hire any contractors right now, for any reason, so they were trying to get me to entertain a perm offer.

I refused, so they suggested they could offer an FTC, which would be 6 months initially. And then they'd ask again if I want perm.

Normally I wouldn't entertain an FTC due to the cash side but aside from one or two narrowly missed good opportunities, the market has been pretty quiet for months and I figure if I can't make the contract money at least I can make the CV look better, and if I'm enjoying myself working on this startup I could hang around.

My thinking with FTC is that it prevents me being trapped between lower money/something I'm not enjoying and trying to explain a short perm job to agents. Do I have the right understanding of it?

In the 12 months FTC that I signed, earlier this year, if you are sick then you do not get paid, just like a LTD contractor. However, I do have 23 days paid holiday. So I strongly recommend checking and agreeing the contractual terms, because your mileage may vary.

If you get Covid 19 suddenly and then get sick for a long time, in my deal, the family will lose income. Whereas in perm this is not so. Also with FTC there will be an auto-enrolled (master) pension scheme, because it will be part PAYE solution (inside IR35).

If you have a strong aversion to perm, I'd recommend going for a 12 months FTC instead with a 4 week notice period either side. For example, you, and I, are probably unlikely to need gym membership, free breakfast and client restaurant discounts or annual train ticket allowances, company cars, but you might be very interested in bupa and other life insurance etc etc.

Good choice to have in this climate.

[PCTNN]

Downside with perm is the notice period of three months if it really doesn’t work.

I guess it may depend on the level, but my permanent roles never had a 3 months notice. All 1 month, increasing to 3 after X years of service.

[jayn200]

I guess it may depend on the level, but my permanent roles never had a 3 months notice. All 1 month, increasing to 3 after X years of service.

3 months is standard for mid senior roles. 1 month for entry level/junior roles. Of course companies do what they want. One place wanted my wife to sign with 6 month notice period, it was a 26k a year admin role. She didn't take the job and I could actually hear them yelling at her on the phone when she told them she was declining the job.

[eek]

3 months is standard for mid senior roles. 1 month for entry level/junior roles. Of course companies do what they want. One place wanted my wife to sign with 6 month notice period, it was a 26k a year admin role. She didn't take the job and I could actually hear them yelling at her on the phone when she told them she was declining the job.

"Thank you for confirming my decision" and then put the phone down.

[edison]

3 months is standard for mid senior roles. 1 month for entry level/junior roles. Of course companies do what they want. One place wanted my wife to sign with 6 month notice period, it was a 26k a year admin role. She didn't take the job and I could actually hear them yelling at her on the phone when she told them she was declining the job.

Most 'reasonable' companies won't enforce a 3 month period for a middle manager role. You can normally negotiate to something like 6-8 weeks but it depends on the circumstances including if there is someone internal who can temporarily stand in whilst they recruit.

I've had one role where the company wouldn't budge though.

A 6 month notice period would normally be a senior exec role. That's crazy for an admin role.

[man]

OP here: Thought you might want to know how it went in the end.

Negotiated 6 month FTC with full permie benefits, didn't enjoy it (way too much red tape, as the parent wouldn't let the new business spend anything without parent exec-level sign off), so I didn't renew (which made some people unhappy but that's not something I can help).

Resumed contracting to find that my added experience massively increased the demand for my skills and things have gone very well since. No regrets.

[ladymuck]

OP here: Thought you might want to know how it went in the end.

Negotiated 6 month FTC with full permie benefits, didn't enjoy it (way too much red tape, as the parent wouldn't let the new business spend anything without parent exec-level sign off), so I didn't renew (which made some people unhappy but that's not something I can help).

Resumed contracting to find that my added experience massively increased the demand for my skills and things have gone very well since. No regrets.

Thanks for letting us know how it went.

Sorry it wasn't the opportunity they sold it as but it seems like you got something useful from it anyway, which is great news.

[simes]

Thanks for the update.

Interesting, but I suppose, not that surprising.

And the current contract, Inside or Out, can one ask?

[man]

Thanks for the update.

Interesting, but I suppose, not that surprising.

And the current contract, Inside or Out, can one ask?

Certainty: All of them have been outside, up to and including today's. It's got to the point where I've started to work with more than one client at a time on a fractional basis.