Engineering grad working in contracting go perm & take less?

[mh9000]

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

Edited by mh9000 on Saturday 4th February 22:09

Edited by mh9000 on Saturday 4th February 22:10

[mh9000]

Cheers for the replies.

Can I ask what grad schemes you did? i.e. big "blue chip" type place or smaller company?

[mh9000]

Thanks, and what industry if you don't mind saying?

[mh9000]

@Trex,

So you started off in the UK then move to Germany by the sounds of things?

[mh9000]

rog007 said:

Top lurking! (Just wanted to get that in first!)

I'll respond properly shortly

haha cheers, I registered ages ago when I was looking to buy a car I think but only came back recently!

[mh9000]

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?

[mh9000]

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.

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?

[mh9000]

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!

[mh9000]

gkw90 said:

Hi mate,

Interesting thoughts and one I've been speaking a lot too with my colleague, who I'm currently sitting across from. Both in automotive, similar age (26) who did the contract route from uni, I did a grad scheme and now in a permanent role. I was quite disappointed by the grad scheme, and felt a lot of times that you were "Just a Grad", and not a proper qualified engineer so to speak. But that is purely down to department ethos, and probably not industry wide. In addition, we didn't really get the training and development promised to us. Although the positives are holiday, pension, company benefits etc.

Contractor boy across from me did a couple of years on big projects at Ford and I think got a bit more out of it then I did comparatively.

If you can get variety in different roles as a contractor, I wouldn't recommend going the grad scheme route. I'm looking to go contract in a few of years once I get enough experience behind me to command a good rate to make giving the benefits up worthwhile.

That's interesting and I guess puts to rest that nagging feeling of missing out development wise by not being on a grad scheme...

My other query is you mentioned a higher rate, from what I've seen in automotive at least it seems to be the graduate or minimal experience level/rate (which probably shouldn't be a contractor but it's the only way these places will employ you if not grad scheme) or senior, without much in between. Is it the senior ones you're looking at?