Michigan-Detroit

WWYD (jobs)

So, right now I am working as a contractor. Recently a permanent position became available at the company I'm working for and today I interviewed for that position.

Pros: If I get an offer (it's highly likely, I've been recommended for the position), I would have a lot more job security (theoretically I could lose my job any day, but I know other contractors who have been with my company for 15+ years), I would get paid time off and some nice benefits (401k matching etc.), and I would get a sweet employee discount. There is also the potential to work on new projects and make a name for myself with the new team.

Cons: I would be getting paid SIGNIFICANTLY less to take the position and the work isn't QUITE as interesting as what I do now.


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Re: WWYD (jobs)

  • I think it is worth it for the security and benefits. Especially if you plan to stay there for a long time (think starting a family, etc.)

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  • Very tough scenario. I picked yes because of the job security thing and benefits. Buttttt, this is coming from a person who used that criteria for my own job. I hate where I live (middle of nowhere!), and I'm not crazy about the pay. But I get amazing benefits, free tuition (basically the only reason I chose my job was so that I could finish my degree for free). 
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  • I assume you don't receive benefits as a contractor. If this is the case, you need to take into account the cost of benefits PLUS the offered salary when determining what they're really paying you. I can see some room for negotiation though, so I selected "maybe".

    Personally, unless I couldn't live on the adjusted salary, I'd take the job for the added security and health benefits. The only caveat here is your FI. If your FI has a job with benefits that you would qualify for upon marriage, and the pay cut isn't worth it, I MIGHT be inclined to stay on as a contractor. Then, you could receive your FI's benefits.

    Another thing to consider with this caveat is job security. Is FI's job secure? That is, if you stay on as a contractor and go onto your FI's benefits, is there any risk of FI losing his job? IMO, you've got to feel like at least one of you has a stable job if the other one wants to do their own thing (i.e. freelance, contract, etc.) in order for both of you to be covered in the event of any health issues.

    My point of view is also coming from someone who requires a lot of medical care and thus the boring things like health insurance rank high. In this same vein, I'd likely take a lesser paying job to secure health benefits. In my single days, I'd never take a contract position b/c I need health insurance and won't be accepted on my own. But, in my married days, I would possibly consider it if I knew I could get picked up by FI's insurance policy.
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  • I actually do currently get benefits being a contractor, but they're not amazing.

    My FI also just started a job working at a bar and is going to school - I am the breadwinner and I have to assume this will always be the case, so my income and benefits are a HUGE deal to both of us.
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  • emarston1emarston1 member
    Combo Breaker First Comment
    edited February 2012

    I said yes take the job.  The benefits are huge--especially the 401k match.  Unless you are agressively saving for your retirement on your own, you seriously need to take this factor into consideration.  Ideally everyone is putting away 15% of their income for retirement and the company match can help this A LOT.  So if they match 5% salary, you need to add that to the salary offer.

    Plus if you're the breadwinner, you also need to ensure job security which the new position would have.  What would happen to you and your husband if you (the breadwinner) were to lose your job?  It's much easier to find a way to live on a reduced income than no income at all.

  • I didn't vote, but I'd vote yes with the following caveats:

    - If offered the job, before even negotiating, ask them to tell you what the benefits cost you. This is important stuff, because if the benefits get better as an employee, so might the cost. Trust me, I know. My health insurance cost me $400 a MONTH until I married Kevin and my daughter and I went on his Tricare veteran retiree plan. By switching care I gave myself a $4800 raise.

    - A 401K matching contribution is huge today. As a person in my 50's I kick myself for not contributing more all along, but I am now putting the max away and watching it go up along with the stock market. A bit late, but really important.

    - What are promotion opportunities like? With promotions come increases.

    I think the 3 items above may get you some better answers if you ask existing employees off the record.

    Things to consider which you did not mention...

    - as an employee you are eligible for unemployment and COBRA if they do have a downturn and lay you off. As a contractor I don't believe you are

    - being an employee makes other benefits available to you like worker's comp insurance (contractors are not covered)

    - as a contractor or employee, is telecommuting an option? This is a huge selling point with a lot of people, especially with gas prices going up. I work from home 100% of the time, and my coworkers do it about 20-40%. Is being an employee an advantage, disadvantage, or non issue?

    In the end only you can determine whether it is wise or not. You and your fiance know your budget best of all. But consider all the thing you GAIN as an employee (mentioned above, plus probably life insurance, dental? vision?) that you don't have now. Is the employee discount truly on something you want to buy?

    As far as negotiating, I suggest looking at things like salary.com to see what similar jobs pay. Also, how "transportable" is your current contractor status to other jobs? Is it something that's valued and you could actually go out and market yourself to other companies, or does actually being an employee of this company make a move to another company easier?

    Good luck.
  • I also choose Maybe but agree with everything that has been mentioned.  Benefits are very important IMO and should be taken into account when looking at the salary change.  I think the most important thing though is to look at your ability to live on the new salary.  If you cannot live on it, and have the lifestyle you want, then is the increase in benefits worth it?  No matter how great benefits are if you hate not being able to go out, travel, enjoy a good bottle of wine, whatever you and your FI like then to me it would not be worth it.  If you are being recommended for the job I am sure those people would recommend you for any other job that you applied to if you found something else in the future.  It is a hard choice either way!  Best of luck with it!  
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  • As the breadwinner, then I definitely say take the job and maybe try to negotiate for a slightly smaller cut in pay. I think you need to ensure job security and benefits for you and FI. The info. about the 401K match is important too, as are Sue's points about COBRA & unemployment should lay-offs occur.
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  • My parents always instilled in me to take a job with benefits even if it meant lower pay, as it would even out.  I am so glad that I did way back in 1988 - I ended up having neurosurgery in 1990 and I would have wiped my parents out financially had it not been for the insurance!
  • In my opinion, the lower pay is worth it for job security and the extra benefits.  They may be able to provide you with a total compensation number, which takes into account the extra benefits.  It's essentially a number that quantifies the benefits.  It may be helpful to you in your decsion making process.
  • Thanks guys! Lots of important things to consider that you've all brought up - if they make an offer (should know by next week) I will make sure to inquire about some of these items before actually making a decision.
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