How much should I expect?
I am currently a contractor at a bank in SF, making $60/hr. It was supposed to be an one year contract but they liked me so much that they want to offer me a FT position within my first 3 months. HR contacted me to get my opinion on the offer and comp. I naturally asked how much the range for this position is, to which she replied somewhere between $91-$144k but they won't be paying more than $116k. If I assume I get the $60/hr it'd be equivalent to $125k/yr. I suggested that I prefer to not go below what I already make but rather make $130k. She says bc I'm a contractor I make more for the same position compared to a FTE (which I'm not sure if it's true). She is trying to sell me on the benefits (which are actually good) but I mentioned I still would like to push for $130k. She said she'll talk to my manager and asked if I won't pursue the offer if they say no. I'm not sure how I feel about this, any advise/suggestions? Current TC: $60/hr, Data Analyst Asking: $130k (position will be sr. Data Analyst)
But look at the bigger picture. U got position bump, full time, benefits etc.
True, but still feel bummed if the TC goes under what I expected, but I do like their benefits. It's better than the previous companies I worked at.
If they like you so much that they're converting you after 3 months then you have a lot of leverage. Hiring people is very expensive and finding a good fit is an even bigger challenge. I would have asked for 140k, and settled somewhere between 130 and 140k.
Yep
What would your reasoning be in that situation? I’m fresh out of college into my first work experience and love to get any piece of information that I can get. How would you ask for 140k if you’re making about 125k right now as a contractor?
60/hr works out to 120k but because you have to pay self employment tax it’s actually a lot less than 120k. You also have to factor in paying for your own health insurance and lack of other benefits too. That said, I would research how much the position pays and try to push for the most you can.
It’s not a LOT less. It’s 6.2% + 1.45% = 7.65%. 60/hr is more like 125k, so after self employment tax it’s 116k, which happens to be exactly what the max they said they would pay is because it ends up costing the company exactly the same.
Sry, I should have clarified that although I'm a contractor, but I was hired through an agency that the bank uses and they only do w2s and no corp-to-corp. The agency also offers some basic benefits (they pay 50% of health insurance and offer no match 401k). You are correct that $60/hr for a contractor is $120k since there are 50 working weeks for contractors compared to 52 weeks for FTEs. Assuming I get hired full-time on a $60/hr rate, then I'd be making (roughly) $125k. Since I know all the salaries at the bank I kinda guestimated $130 should be the right spot, but after talking to HR, I got the feeling that she tried to downplay me. I tried to make sure I send the msg that I won't go under my current rate but want $130k to feel good. I don't know how to respond if she gets back to me and say no we won't offer that much.
Where I work contractors make more. I assumed it was to cover their own benefits and the employer doesn't need to spend on their benefits. As for the promise to not pursue, I would stall on that if possible.
Thanks for your comment, they offered me close to $128k and since it was within my expectations, I accepted it. BTW, I have a M.Sc. in Aerospace engineering and always wanted to join NG. Too bad when I was applying I had a green card and they wouldn't accept me. Cool place to work at.
Most jobs require a secret or above to be obtained. I remember reading that having a green card doesn't automatically disqualify a candidate though when I got training as a hiring lead. I can ask about this and get back to you. Congrats on a successful negotiation!
I'd be adamant about 130k.
That's how I started, let's see how it goes. Thanks.
What'd you get?