I've been the IT Director at my company for 23 years, but we were recently acquired. After many meetings to hand over the knowledge, the new company is ready to take charge. They proposed a contract for 5 hours of work per month at a rate that's yet to be discussed. I'm located in Canada, and they're in Austria. I have two main questions: first, what would be an appropriate hourly rate for this kind of work? Second, does it make sense to agree to a month-to-month contract, or should I ask for something longer, maybe a minimum of six months?
6 Answers
Doesn’t it seem odd to acquire a company and only use its resources for 5 hours a month? Sounds like they might be gearing up to shut things down after the transition. Just a thought!
Don't forget that you might need to deal with extra expenses like an accountant and liability insurance if you’re contracting. It's not just about the hours; starting an incorporation can also add to your costs.
You could calculate your current daily salary, then add about 20%. After that, divide that figure by 24 to get a daily rate; break it down to an hourly rate from there. As for the contract, I’d recommend pushing for at least a 6-month commitment or quarterly renewals. It gives you a bit more job security!
Honestly, for just 5 hours a month, I'd be wary of that offer unless the pay is attractive. Maybe ask for around $1,000 per month with a minimum 6-month commitment. Just make sure everything is in writing; verbal agreements can lead to messy surprises later.
Make sure everything is clearly defined in writing, including timelines. I've seen situations where companies want you to resign just so they can convert you to contract and then not renew it. It's a bit sketchy, so protect yourself!
Honestly, it feels like they’re just trying to let you go without officially firing you. Five hours a month isn't enough to keep anyone around, and my gut says they might not renew if they think it's too low.
Totally agree! A six-month term with a 90-day renewal option sounds like a solid plan.