Engineering grad working in contracting go perm & take less?
Discussion
Hi, hopefully typing this out and chatting to people will help the decision.
(I apologise in advance if it sounds like I'm ungrateful...I do enjoy many aspects of my work and it took a lot of effort to get it, to anyone struggling to get something I do empathise, it took me a lot of rejections and it's bloody frustating after putting the work into the long application process.)
I am 31 and graduated in 2015 in with an MEng in Mechanical Engineering, and have been working in my current job in mechanical engineering for just over a year now.
It is a contract role through my ltd company, although the rates don't seem to be as high as IT and I'm not sure there is the same possibility of eventually earning the high day rates some do in Finance related IT contracting...at least not at the moment. Still fairly decent though.
As I am effectively a late starter (see graduating at 30) I have been very fortunate as this has in a way put me in a similar pay level as I would have been if I graduated at 22 and worked up- I earn around 1.8-2x the pay of other grad roles I'd applied for. (I know a contractor at that level would get more but hopefully you get the idea)
However I do find the work a bit repetitive as I do variations of the same thing or worse I am stuck with not much to do on occasion. As I only graduated in 2015 I know I have a lot to learn and I don't know if it's as good development as a formal graduate scheme. On the other hand, there is every chance the graduate schemes are not what I am envisaging them to be.
I am very conscious of not "wasting" any more time and I don't want to put myself into a disadvantage long term vs. those who have completed a graduate scheme. Of course, this experience must count for something but I don't want to box myself into a niche. On the other hand, perhaps the grad schemes don't have this advantage I'm perceiving.
The particular industry I am in also limits my location which means I am considering applying for a graduate scheme (possibly in a different area of engineering that opens up more work locations) with more formal training however this will mean taking a 50% pay cut, until I earn enough to get back to what I was earning in this role. I could then go contracting again but with a higher rate.
I am unmarried and no mortage etc so free to move around, am considering Oil & Gas too but I understand it's not doing great at the minute, (although picking up a bit again)
In spare time I've started learning other areas I am interested in, (using the relevant software, projects etc) and apply for non-graduate roles in the areas I am interested in, however I wouldn't have the relevant work experience.
TL:DR Payed 2x graduate salary in contractor job, take massive pay hit and leave for potentially more development/prospects or not?
Thanks for reading, any advice appreciated. Maybe someone has been in a similar situation? Cheers
(I apologise in advance if it sounds like I'm ungrateful...I do enjoy many aspects of my work and it took a lot of effort to get it, to anyone struggling to get something I do empathise, it took me a lot of rejections and it's bloody frustating after putting the work into the long application process.)
I am 31 and graduated in 2015 in with an MEng in Mechanical Engineering, and have been working in my current job in mechanical engineering for just over a year now.
It is a contract role through my ltd company, although the rates don't seem to be as high as IT and I'm not sure there is the same possibility of eventually earning the high day rates some do in Finance related IT contracting...at least not at the moment. Still fairly decent though.
As I am effectively a late starter (see graduating at 30) I have been very fortunate as this has in a way put me in a similar pay level as I would have been if I graduated at 22 and worked up- I earn around 1.8-2x the pay of other grad roles I'd applied for. (I know a contractor at that level would get more but hopefully you get the idea)
However I do find the work a bit repetitive as I do variations of the same thing or worse I am stuck with not much to do on occasion. As I only graduated in 2015 I know I have a lot to learn and I don't know if it's as good development as a formal graduate scheme. On the other hand, there is every chance the graduate schemes are not what I am envisaging them to be.
I am very conscious of not "wasting" any more time and I don't want to put myself into a disadvantage long term vs. those who have completed a graduate scheme. Of course, this experience must count for something but I don't want to box myself into a niche. On the other hand, perhaps the grad schemes don't have this advantage I'm perceiving.
The particular industry I am in also limits my location which means I am considering applying for a graduate scheme (possibly in a different area of engineering that opens up more work locations) with more formal training however this will mean taking a 50% pay cut, until I earn enough to get back to what I was earning in this role. I could then go contracting again but with a higher rate.
I am unmarried and no mortage etc so free to move around, am considering Oil & Gas too but I understand it's not doing great at the minute, (although picking up a bit again)
In spare time I've started learning other areas I am interested in, (using the relevant software, projects etc) and apply for non-graduate roles in the areas I am interested in, however I wouldn't have the relevant work experience.
TL:DR Payed 2x graduate salary in contractor job, take massive pay hit and leave for potentially more development/prospects or not?
Thanks for reading, any advice appreciated. Maybe someone has been in a similar situation? Cheers
Edited by mh9000 on Saturday 4th February 22:09
Edited by mh9000 on Saturday 4th February 22:10
The good news is, there's a shortage of Engineers. There's an even greater shortage of good Engineers.
Going straight in to role vs a graduate scheme; the pros and cons of both are well rehearsed, with grad schemes just ahead in terms of prep for the long term.
I'd think less about money at this early stage and more about learning as much as you can about your profession. Your aim is to become the best engineer you can be in the shortest amount of time. The rewards will then follow.
If however you're not 100% excited about your profession, then a decision on what to do next should be made soon.
Good luck!
Going straight in to role vs a graduate scheme; the pros and cons of both are well rehearsed, with grad schemes just ahead in terms of prep for the long term.
I'd think less about money at this early stage and more about learning as much as you can about your profession. Your aim is to become the best engineer you can be in the shortest amount of time. The rewards will then follow.
If however you're not 100% excited about your profession, then a decision on what to do next should be made soon.
Good luck!
I think it depends on the industry/company/grad scheme.
Look at the people around you who are finishing the grad scheme now, finished 1-2 years ago and finished 2-5 years ago.
Where are they, what are their roles and responsibilities? Look at the people performing really well but also look at the average.
Benchmark yourself against them as best you can - could you out-perform them/match them etc. Their position in the business should give you an idea of earning potential, look for the similar roles advertised externally for salary ranges
Personally speaking I went the grad scheme route, started in Sep 13 and I am now a lead engineer. Earnings increased through the grad scheme as standard +11% at the end of the two years and I then got two further pay rises on performance and then the promotion. Now earning 43% more than when I started.
I have however been identified as one of the top performers, probably 10% of my peers have had similar progression.
There is a contractor in my team, started as a graduate and his rate is pretty much the same now as it was then. He has moved roles twice as he didn't like them and because of that has been unable to command a higher rate as he has to learn new skills. He now wants to become permanent however the grad scheme provided me with an incredible amount of training and moving around the business and that is one of the reasons for my progression.
From looking around the business the people I look up to (ranges from lead engineers to directors), the vast majority started out on a graduate scheme or apprenticeship in my industry. That tells me it is a great foundation and helps in progression
Look at the people around you who are finishing the grad scheme now, finished 1-2 years ago and finished 2-5 years ago.
Where are they, what are their roles and responsibilities? Look at the people performing really well but also look at the average.
Benchmark yourself against them as best you can - could you out-perform them/match them etc. Their position in the business should give you an idea of earning potential, look for the similar roles advertised externally for salary ranges
Personally speaking I went the grad scheme route, started in Sep 13 and I am now a lead engineer. Earnings increased through the grad scheme as standard +11% at the end of the two years and I then got two further pay rises on performance and then the promotion. Now earning 43% more than when I started.
I have however been identified as one of the top performers, probably 10% of my peers have had similar progression.
There is a contractor in my team, started as a graduate and his rate is pretty much the same now as it was then. He has moved roles twice as he didn't like them and because of that has been unable to command a higher rate as he has to learn new skills. He now wants to become permanent however the grad scheme provided me with an incredible amount of training and moving around the business and that is one of the reasons for my progression.
From looking around the business the people I look up to (ranges from lead engineers to directors), the vast majority started out on a graduate scheme or apprenticeship in my industry. That tells me it is a great foundation and helps in progression
Can you not just get a different contract with a new company? Doing 4, 6 month contracts in 2 years will be far more beneficial than a 2 year grad scheme imo. Also a good way of building up contacts in the industry. If I were you I wouldn't be in a rush to go from ltd co contractor to perm. 
The problem with contracting early career is you have little experience to fall back on or offer. You're unlikely to command the top rates and have little prospect of increasing your rate.
With experience and variety behind you, organisations will engage you. You may use only part of your skills and experience for any given role or they may see some as transferrable.
If you are inexperienced and permanent or even part of a graduate or structured programme then you can at least expect some investment in your training and development. As an 'outsider' contracting this will be next to impossible to get.
With experience and variety behind you, organisations will engage you. You may use only part of your skills and experience for any given role or they may see some as transferrable.
If you are inexperienced and permanent or even part of a graduate or structured programme then you can at least expect some investment in your training and development. As an 'outsider' contracting this will be next to impossible to get.
Work in Aerospace, most people on the grad scheme I know have either left or amble along.
Schemes will promise the earth and to 95% of candidates deliver nothing close.
I did something similar, not the best three years, but I finished with a permanent job, what was promised and what was delivered ... well ...
Also know quite a few lads who left to become contractors as Eng staff wages in the U.K. are , frankly, a joke.
A graduate Engineer here in Germany starts on 60k Euro (+bonus) fresh from University, our Work Students get circa 20k a year for 20hours per week.
Schemes will promise the earth and to 95% of candidates deliver nothing close.
I did something similar, not the best three years, but I finished with a permanent job, what was promised and what was delivered ... well ...
Also know quite a few lads who left to become contractors as Eng staff wages in the U.K. are , frankly, a joke.
A graduate Engineer here in Germany starts on 60k Euro (+bonus) fresh from University, our Work Students get circa 20k a year for 20hours per week.
Yeah, same company, moved for the next grade up and tripled my wage to move out here.
My old boss who is the same grade as I am now earns around 45% of my Germany salary and he has 25 years in the company to my 9.5.
Germany is the place for Engineering, Audi / Porsche pay an excellent salary if you are in Automotive.
My old boss who is the same grade as I am now earns around 45% of my Germany salary and he has 25 years in the company to my 9.5.
Germany is the place for Engineering, Audi / Porsche pay an excellent salary if you are in Automotive.
Trexthedinosaur said:
Yeah, same company, moved for the next grade up and tripled my wage to move out here.
My old boss who is the same grade as I am now earns around 45% of my Germany salary and he has 25 years in the company to my 9.5.
Germany is the place for Engineering, Audi / Porsche pay an excellent salary if you are in Automotive.
Do you mind if I PM you Trex?My old boss who is the same grade as I am now earns around 45% of my Germany salary and he has 25 years in the company to my 9.5.
Germany is the place for Engineering, Audi / Porsche pay an excellent salary if you are in Automotive.
mk2driver said:
I think it depends on the industry/company/grad scheme.
Look at the people around you who are finishing the grad scheme now, finished 1-2 years ago and finished 2-5 years ago.
Where are they, what are their roles and responsibilities? Look at the people performing really well but also look at the average.
Benchmark yourself against them as best you can - could you out-perform them/match them etc. Their position in the business should give you an idea of earning potential, look for the similar roles advertised externally for salary ranges
Personally speaking I went the grad scheme route, started in Sep 13 and I am now a lead engineer. Earnings increased through the grad scheme as standard +11% at the end of the two years and I then got two further pay rises on performance and then the promotion. Now earning 43% more than when I started.
I have however been identified as one of the top performers, probably 10% of my peers have had similar progression.
There is a contractor in my team, started as a graduate and his rate is pretty much the same now as it was then. He has moved roles twice as he didn't like them and because of that has been unable to command a higher rate as he has to learn new skills. He now wants to become permanent however the grad scheme provided me with an incredible amount of training and moving around the business and that is one of the reasons for my progression.
From looking around the business the people I look up to (ranges from lead engineers to directors), the vast majority started out on a graduate scheme or apprenticeship in my industry. That tells me it is a great foundation and helps in progression
I guess this partly it too...maybe going off onto the old "engineers are underpaid tangent". Sounds like you are enjoying it and good at your job, but a top performing Lead Engineer then being on only 45% more than the grad salary is my point really. Even if the grad salary is the higher end say 30k, that puts the Lead engineer after 4 years on about 43.5, and you're in the top 10%. Which is more or less what the low end contract roles pay...albeit minus pension contributions etc. Look at the people around you who are finishing the grad scheme now, finished 1-2 years ago and finished 2-5 years ago.
Where are they, what are their roles and responsibilities? Look at the people performing really well but also look at the average.
Benchmark yourself against them as best you can - could you out-perform them/match them etc. Their position in the business should give you an idea of earning potential, look for the similar roles advertised externally for salary ranges
Personally speaking I went the grad scheme route, started in Sep 13 and I am now a lead engineer. Earnings increased through the grad scheme as standard +11% at the end of the two years and I then got two further pay rises on performance and then the promotion. Now earning 43% more than when I started.
I have however been identified as one of the top performers, probably 10% of my peers have had similar progression.
There is a contractor in my team, started as a graduate and his rate is pretty much the same now as it was then. He has moved roles twice as he didn't like them and because of that has been unable to command a higher rate as he has to learn new skills. He now wants to become permanent however the grad scheme provided me with an incredible amount of training and moving around the business and that is one of the reasons for my progression.
From looking around the business the people I look up to (ranges from lead engineers to directors), the vast majority started out on a graduate scheme or apprenticeship in my industry. That tells me it is a great foundation and helps in progression
So for other areas of engineering with even a lower grad salary it doesn't seem worth it? I know pay isn't everything but why is it less than other professions?
Is it less than other similar skilled jobs though?
In terms of the whole package for me there is also bonus to consider, 8% pension contribution, 26 days paid holiday, sick pay, training, overtime rates etc
There is also the benefit of progression within the business in terms of management etc.
It all depends on your personal priorities and career ambitions. If money is your driver then contracting can certainly earn more. I want to progress further into leadership within my industry and the investment the business makes in me and I make in it being permanent will help get me there.
Alongside that I place quite a bit of value on the stability side. I'm getting married this year, moving house and planning to start a family. Trying to do that with contracting is more difficult - completely possible and feasible but just more difficult.
There is no right answer that works for everyone, there is only the right answer for you
In terms of the whole package for me there is also bonus to consider, 8% pension contribution, 26 days paid holiday, sick pay, training, overtime rates etc
There is also the benefit of progression within the business in terms of management etc.
It all depends on your personal priorities and career ambitions. If money is your driver then contracting can certainly earn more. I want to progress further into leadership within my industry and the investment the business makes in me and I make in it being permanent will help get me there.
Alongside that I place quite a bit of value on the stability side. I'm getting married this year, moving house and planning to start a family. Trying to do that with contracting is more difficult - completely possible and feasible but just more difficult.
There is no right answer that works for everyone, there is only the right answer for you
mk2driver said:
Is it less than other similar skilled jobs though?
Sadly, if you look at the other jobs you could do with your Engineering degree, I would say it is which is a bit disheartening. But I am in a high cost of living area so that's probably why it seems that much gloomier!Gassing Station | Jobs & Employment Matters | Top of Page | What's New | My Stuff