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.



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

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