As a career counselor, career guidance professional, HR professional and staffing executive who has hired or placed 1,275+ individuals, I've gotten several inquiries concerning, "I've got a contract-to-hire opportunity... What should I ask in terms of salary?" This is solid topic and a definite concern as we see hints of the economy improving. Many firms want to offer a candidate a contract-position to see how the person will perform, and then make the decision to hire / not hire. From the corporate perspective, this kind of decision makes some sense. "Try-Before-You-Buy" could be an applicable scenario. Corporate reasons for contract versus immediate hire are savings in all the new-hire components, such as: benefits, ease of dismissal if needed, (I know, this is a dark side), payroll set -up, rooster additions, etc. The inquiries I'm getting revolve around how much of an hourly rate should a person request when taking a contract position. There are two scenarios: If you are going through a professional service firm, your old salary plus a fee will be sent to the client. Normally your salary is predetermined to the agency and discussed with the company for a conversion fee in say six months. If you contract yourself, here are some keys. What was your last salary? Was the salary contract work or were you on a full-time-position? Don't think you will be automatically given a 10% increase because you are switching jobs. Can you W-2 (the company pays taxes), or will you 1099 (where you pay the taxes?) To 1099, there are several steps including a DBA, EIN number, and so on. These are topics for your accountant to work out with you. For a contract rate, this point is the most important. If you were making $80,000 in your previous, most or current position, a fair contract rate would be in the low $40s / HR. You need to be ready for a conversion rate, yet be fair to yourself in terms of compensation. Or you may decide to take a lower rate in the $37 - 38 /HR. Or you many need to see what the client will offer. I have recently seen candidates in a similar position price themselves at $50 - 55/HR and maybe, if there is a needed skill set, be able to be considered. This is a risky step. If you need assistance in determining a competitive salary and how to approach your next position, meet with a professional to gain insight and solid career advice.

1. Salary Expectations: Contract Hire, Then
Conversion To Full Time
As a career counselor, career guidance professional, HR professional and
staffing executive who has hired or placed 1,275+ individuals, I've gotten
several inquiries concerning, "I've got a contract-to-hire opportunity...
What should I ask in terms of salary?"
Have a look at - contract hire
This is solid topic and a definite concern as we see hints of the economy
improving. Many firms want to offer a candidate a contract-position to see
how the person will perform, and then make the decision to hire / not hire.
From the corporate perspective, this kind of decision makes some sense.
"Try-Before-You-Buy" could be an applicable scenario.
Corporate reasons for contract versus immediate hire are savings in all the
new-hire components, such as: benefits, ease of dismissal if needed, (I
know, this is a dark side), payroll set -up, rooster additions, etc.
The inquiries I'm getting revolve around how much of an hourly rate
should a person request when taking a contract position. There are two
scenarios: If you are going through a professional service firm, your old
salary plus a fee will be sent to the client. Normally your salary is
predetermined to the agency and discussed with the company for a
conversion fee in say six months.
If you contract yourself, here are some keys. What was your last salary?
Was the salary contract work or were you on a full-time-position? Don't
think you will be automatically given a 10% increase because you are
switching jobs. Can you W-2 (the company pays taxes), or will you 1099
(where you pay the taxes?)
To 1099, there are several steps including a DBA, EIN number, and so on.
These are topics for your accountant to work out with you.

2. For a contract rate, this point is the most important. If you were making
$80,000 in your previous, most or current position, a fair contract rate
would be in the low $40s / HR. You need to be ready for a conversion rate,
yet be fair to yourself in terms of compensation. Or you may decide to take
a lower rate in the $37 - 38 /HR. Or you many need to see what the client
will offer. I have recently seen candidates in a similar position price
themselves at $50 - 55/HR and maybe, if there is a needed skill set, be able
to be considered. This is a risky step.
If you need assistance in determining a competitive salary and how to
approach your next position, meet with a professional to gain insight and
solid career advice.