#CareerAdvice #LaidOff #ContractWork #FinancialStress #JobSecurity
Feeling lost after being laid off and offered contract work the next day?
Imagine the rollercoaster of emotions you must be feeling – one day you’re handed a pink slip, and the next, you’re being offered a lifeline in the form of contract work. It’s understandable to feel conflicted, confused, and uncertain about what to do next.
Understanding the Situation
Being laid off can leave you feeling vulnerable and uncertain about your future. The sudden shift in your employment status can throw you off balance and make you question your worth and value as a professional.
However, the offer of contract work presents a potential opportunity to keep your foot in the door and maintain income while you navigate the job market.
Weighing the Pros and Cons
Before making a decision, it’s crucial to weigh the pros and cons of accepting the contract position. Consider factors such as job security, benefits, stability, and potential for growth in the role.
While contract work may provide immediate income, it may lack the security and stability of a full-time position. You’ll need to assess whether the benefits outweigh the potential drawbacks in the long run.
Negotiating Your Worth
When it comes to determining your worth as a contractor, it’s essential to factor in your previous salary, skills, experience, and market rates for similar roles. Aim to negotiate a fair rate that reflects your value and expertise.
Consider factors such as project scope, deadlines, deliverables, and any additional responsibilities that may impact your workload. Don’t hesitate to advocate for yourself and negotiate a competitive rate that aligns with your expertise.
Seeking Support and Guidance
Don’t hesitate to seek support and guidance from trusted colleagues, mentors, or career advisors. Reach out to your network for advice, insights, and recommendations on how to navigate this challenging situation.
Remember, you’re not alone in facing career challenges. By seeking support and guidance from others, you can gain valuable perspective and insights that may help you make informed decisions.
Ultimately, trust your instincts, evaluate your options, and make the choice that aligns with your career goals and aspirations. Stay resilient, adaptable, and open to new opportunities that may arise from this experience.
Remember, every setback is an opportunity for growth and transformation. Embrace the journey ahead with courage, optimism, and determination. You’ve got this!
Take what you can! The salary should be a nice premium, 30-80% from what I’ve been told by colleagues.
This market sucks take it.
At that salary I would be asking for $80-$90 an hour, and stay pretty firm on that. Assess if you could go even higher than that. This would equal an approx $160,000-$180,000 salary at full time work, which you may or may not have. Sometimes large companies have contractor schedules that lay out rates for certain functions. Ask if they have that for your area, and if not I encourage you to set a rate not lower than $80/hr.
In contracting it is important you value yourself high to start, and it sounds like they need your expertise. It can be hard to raise your rates so start high!
Well the new pay has to cover Insurance, SS, and the fact you will be training your replacement no doubt.
So 75% more than what you were being paid, OT is paid at 2x above 40 to 60 hr, and 3x above 60.
6 Weeks paid vacation, if let go or can not take it is paid out.
Also if fired or “let go”, 3 months pay for the trouble.
Let them make the first move. See what they’re offering. Beware being ridiculous, anonymous people on the internet aren’t in your shoes and don’t have to suffer the consequences of a bad decision or approach. You do however have some cards to play and should start by understanding what someone in the job market would make for your job title, skills, and responsibilities. Of course add a healthy premium, say 30-40%, from there.
Id start at offering a day rate of 1000.
They are going to counter offer you regardless so may aswell set your starting position high.
I wouldn’t accept it for any less than 5 or 600 per day
Ask for 2.5x your old salary, so 200k. They are going to use and throw you so make them pay.
> How much should I be asking for as a contractor if my salary was around $80k?
$160k
Taxes and other stuff will take a big part of your gross income. (I set aside between 25% and 30% just to cover state and federal taxes.)
You were making approximately $38.50 per hour before (based on 2080 hours a year)and contractors usually get paid more. I would start at $80 an hour. Remember you won’t have benefits as a contractor and you’ll have to put away 40% for taxes or less depending on where you live. And if you have to get your own health and dental, that cost a few hundred bucks a month as well.
At 80k salary, a comparable contract rate would be in the $65-$70 /hr. I would add a bit on top since everyone including yourself know that they need you. Shoot for $100 and settle for $90. Also don’t be working extra for nothing. Don’t forget these guys laid you off. Track every phone call, every minute you help them and bill it to death.
3x what your hourly was
Min weekly amount + additional billable hours
Min term (e.g.3x months)
Guarantee that all severance, etc owing from being laid off is still due/unaffected by new contract.
Draw up comprehensive agreement, specify liability, etc. Consider you may need to incorporate and/or get business insurance (that may affect your house insurance). Protect your personal/home assets
It does sound simple (hey, can you work a bit)…but it’s not when you’re not a employee and it’s a legal agreement between companies.
You could simply ask him to hire you back at a much different wage and waive severance related stuff.
Edit…I wouldn’t do it anyways. There’s nothing long term coming from this and energies would be better used to find your next gig. They made their decision…they can live with it.
Take it! The tax benefits are AMAZING!
Ask them if they will hire you B2B! You can quickly spin up an LLC online and have them hire your business. EVEN Better tax advantages!!
They won’t find a specialty 1099 or consultant for under $250/hr so bill him at $200/hr
Other people have already pointed out that you’ll have to pay both employer and employee portions of Social Security and Medicaid (assuming you are in US) which comes out to 15% of income. Plus the cost of having to self-fund your benefits.
My own profession (engineering) says the rule of thumb is to charge 2.8x your previous $/hour if you want to break even. Go to 3.5 if you want to make a good profit. But you have some leverage, so maybe go with the higher end of that at $140/hr?
Sure, I’ll come back to work as a contractor…for three times my previous wage.
When people contract at my job after leaving they get a significant pay increase and p/t hours. It’s the dream situation.
What a great opportunity for them to meet your new $280000 salary requirements.
HERE’S MY TAKE ON THINGS:
your not telling us the entire truth, just trying to slant the story to make yourself look good.
They don’t just fire critical people on the spot like that.
I have a feeling you were a real #sshat at work to get let go like that.
The fact they wanted you on contract means, they CONCIDER you toxic, but they want knowledge from you. They don’t want you back.
The company got rid of it’s financial stress by dumping it onto you. I wouldn’t take contract work if it meant that you might be inconvenienced in getting another job. Good luck
Haven’t seen it mentioned yet, but keep in mind that you should probably be setting up some sort of corp or LLC to cover yourself.
Look, contracting comes with providing your own benefits and you have no protection. Contracting can be rewarding if you have a good sized emergency fund and other potential opportunities in the pipeline. I felt a lot less political stress, but more financial stress when I contracted.
If you decide to go the contracting route, I’d say 100 an hour payable 1 week in the rear is reasonable for a 80K a year job. You need to plan for extra taxes your employer used to cover, your normal taxes, healthcare, dental, retirement, and vacation. This stuff adds up.
One other learning. I was once paid 4 weeks in the rear and the company got seized by the IRS for not paying taxes. I lost 4 weeks of pay. Don’t be me. Especially if your company is having financial difficulties.
You need to add in taxes and other benefits. That is why contractors are paid higher than a salary.
80K salary is $39/hr. So to account for benefits like health insurance, taxes, vacation etc that you would have to pay yourself you should double it and accept no less than $80/hr or 166k annual.
I think you should ask $100/hr and dont let him negotiate you down too much because of the stress he has caused you. Also make sure to draft a contract with clear scope of work and structure it with a deliverables based contract in such a way that you are paid an amount on signing. Because of the fiscal issues and your boss being a cheapskate he wont want to sign a deliverables based contract. Thats fine because an hourly contract advantages you. Just make sure to have a clear scope of work, track any time you work down to 15 minute intervals (round up) and invoice frequently and early. A company in fiscal trouble often pays its vendors last so be very careful. You dont want to be in a position of dling work you never get paid for.
Obviously take it..
Lol ask for a raise. Make sure they remove the non-compete clause and start looking for a company that will look after you.
Absolute minimum would be to ask twice as much as you were being previously paid. How much more then that, up to you.
First off, don’t get upset. You are going independent. You have a skill they want. Know this and price gouge them. Remember, they just fired you; it’s business. You are going to be self-employed, so it’s on you terms because they need you and it is critical. Or they can find someone else and you move on and collect unemployment.
You might want to get more advice on this. Like how it will impact your unemployment because they are offering a job.
Do research on your job role. You know your value. You have what they want, which is not a good position for them because you can dictate more of your terms and if they are not happy they can suck it or suffer.
$200 per hour as a contractor sounds ok , don’t expect to work there for more than 3 months so you have to make a yearly salary in 3 months or less as the next job may very well take 9 months or longer to find
I work in IT Project Management so most likely not the same, but sharing for context – we typically pay contract companies $120/hr for standard PM resources. Many of our independent contract PMs charge around $110/hr. We’re often charged up to $180+ for specialty resources (e.g. developers). Your role is obviously needed and, as others have said, you’re losing benefits and will have to pay out of pocket for a lot more so take that into consideration.
On contract meaning they only using you then kick you out again in no time. Tell the CEO you charge 2x with Minimum 6 months contract.
You people are deranged, if you think the OP is going to get $200k you are smoking crack. I bet they are thinking about 125% of what you were making
Find somewhere else to work!!! This is mean and downgrading.
An 80K salary costs the company far more than 80K, besides being a liability on the books – 2x isn’t far off their current costs.
Ask for $100-125/hour minimum expected full-time for (depending on your comfort level) 3-6 months. The longer the time commitment, the lower the hourly, but don’t go below $100 as that’s barely more than your true cost to the company (between salary, benefits, vacation & sick time, physical site costs).
Take the contract job to work from home and get a second job for OE (head over to overemployed sub ).