Re: Going from employee to contractor: setting a rate

Subject: Re: Going from employee to contractor: setting a rate
From: dmbrown -at- brown-inc -dot- com
To: "TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com>
Date: Thu, 22 May 2003 09:16:13 -0700


Steve Schwarzman wrote:
>
> ...For me, these two methods produce similar results...

Yep, they should produce similar results. That's why they're both reasonable methods for determining rates.

:)

This is especially true when you're going to work with your current (soon to be former) employer. They'll have a clear understanding of what you *really* cost them as an employee, rather than just considering your salary.

As for today's economy, be prepared to accept more like 3/4 of $X. (Using your example, a $50,000 annual salary would translate to a $37.50 hourly wage.) Ask for more, if you like, especially if they're not looking very hard for anyone else to take the contract; but know that there are probably others willing to work for much less--maybe even some qualified candidates. If the company opens up for bids, you may not be able to get the same high rate you could have expected a couple of years ago.

In this respect, too, though, it will probably help that your client is your former employer.

--David

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References:
Going from employee to contractor: setting a rate: From: Steve Schwarzman

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