Re: how do you structure a temp-to-perm contract?

Subject: Re: how do you structure a temp-to-perm contract?
From: "Steve Arrants" <stephena -at- compbear -dot- com>
To: "TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com>
Date: Sun, 19 May 2002 15:51:12 -0700


"Liza Boyd" <elizabethxyboyd -at- yahoo -dot- com> asks:

> A small/medium start-up wants to take me on for 60
> days and then perhaps hire me FT. (For various
> reasons, they don't want to commit to a FT tech
> writer right now, even though they know essentially
> need one.)
>
> In the meantime, the specific deliverables are
> undefined. As the only tech writer, I will essentially
> function as if they'd hired me as a regular employee
> -- I will scope out their documentation needs, develop
> a documentation plan, start working on whatever pieces
> get the OK, and do whatever other tech writing needs
> come up in the meantime.
>
> => How would you structure the terms of this contract,
> where the deliverables are so unclear, so that both
> sides have clear and mutually satisfactory
> expectations about what work will be accomplished?

This is the area with the most risk. Without clearly defined deliverables
before you start, with deliverables that can (and will) change so much
during the 60-day period, you and the employer need to come to an agreement
on what the deliverables *are* before starting. Make a proposal based on
the above--
o scoping our documentation needs
o developing/delivering a documentation plan
o delivering on documentation pieces WITHIN THE 60 DAYS agreed to
beforehand

What raises the hair on my neck is the "whatever tech writing needs come up
in the meantime." Who is going to determine what these are? It is easy to
get pulled into a "we just need these docs edited" task, but unless your
direct manager/supervisor signs off on it, you're asking for trouble at
review time. Determine who your manager is (who will decide to hire you
full-time) and get approval for things through him/her.

Also, meet regulary with the manager with a list of tasks agreed to and
tasks accomplished to avoid problems and misunderstandings. This is very
important during this "probationary" period for everyone's peace of mind.
Regular contact and feedback is also an opportunity for you to show what you
can do (listing and presenting work you've agreed to do) as well as to
suggest improvements and other work you can do.

> => How do you convert from a salary into an hourly
> contracting rate. Eg: if normally I would earn
> $50K/year for this job as a FTE, what hourly rate do I
> charge as a contractor?

$50/hour isn't out of line, but if they're that skittish about hiring you
full-time to begin with, see what they're willing to pay when (if) you
convert to full-time. You don't want to bid a low rate and then when they
want you full-time have them say "Well, our salary calculator says we should
offer you $30,000/year based on your contract rate".
Remember that you are paying full employment taxes AND expenses as a temp.
You can't collect unemployment, disability, workers compensation, and the
like during this "tryout" period.


> => What do you do about stock options? If I later get
> hired as a FTE, presumably I will get stock options.
> Should I be penalized now for the fact that they're
> not ready to commit to FT, or can I write terms into
> the contract, such as, if I do get hired, the vesting
> period for any options is the start date of the
> contracting period, OR should I ask for pro-rated
> options now?

That's something to negotiate before starting. Also, is there a waiting
period (30-, 60-, 90-days) before benefits start for full-time employees?
That's something else you might want to negotiate.

You are a contractor, not a temporary employee (as I understand the terms).
You don't say where you are, but if in the US, you aren't represented by an
agency and paid through them as a W-2 employee. You are paid 1099, as an
independent contractor. From your description, it sounds like the company
wants all the benefits of a full-time employee without the responsibilities
and costs. Bottom line for you is to structure the contract and the 90-days
so that you feel secure and satisfied with the contract. And you may want to
keep your eyes and ears open for other jobs--don't treat this as a full-time
position in and of itself, treat this as a contract that might turn into a
good full-time position. Give it your all, work hard, and deliver.





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References:
how do you structure a temp-to-perm contract?: From: Liza Boyd

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