On Contract and Received Conversion to FTE Offer, but not sure about it
I'm a mid-level SWE at a Big Tech company. I've been on contract for 7 months now and recently had my contract extended. I believe I met most expectations but didn't wow my manager enough to get full time. One month into my extension, my manager is leaving the team and his manager is replacing him. She extended me a full-time offer. Whoot! But wait, I'm not actually sure I want to take it now.
Here's the deal. I currently make ~$250K in cash annualy charging at an hourly level ($130/hr).
The full time offer will be ~$160K in base plus ~$100K in equity per year, with the vesting being like I get half the equity after 1 year and then quarterly after that. Plus I get benefits
So already there are 3 disadvantages:
- The pay is about the same and instead my money is tied to company stock.
- I need to wait / be at the company for at least a year to get the stock.
- I lose the tremendous tax advantages that come with being a contractor since I don't have taxes deducted upfront, but instead pay them myself.
So on a dollars and cents level, I think I should decline.
The reason I'm hesitant to do that is obvious: I don't want to mark myself as an outsider on the team and hurt the feelings of my nice new manager.
It's a nice problem to have, but still a problem!
Any insights are appreciated.
Thanks!
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Discussion
(5 comments)- 2
a month agoTech Lead @ Robinhood, Meta, Course HeroYou should 100% take the offer:
- Being a FTE at Big Tech is 3x-5x more prestigious (maybe even more) than being a contractor there. It will help you a ton with future job searches
- You get the stability of being FTE vs. a contractor who is much easier to let go (contractors don't get severance). Execs need to think twice about laying off FTEs
- Big Tech has historically outperformed the S&P500. So your equity package will likely go up over time, increasing your TC
- At pretty much every Big Tech I know of, contractors get worse scope than FTEs, hampering their career growth
Your disadvantages are valid, but I don't think they are enough to outweigh everything I mentioned here.
Also, I am confused as to how the grant works: Normally RSU grants are across 4 years, so after the 1-year cliff, you get 25% of the stock. Are you getting 50% of the stock after the 1-year cliff so that your first year comp is higher than following years...?
- 2
a month agoLeading the Platform Team at Taulia, part of SAPI am late to answer and assume you have accepted the offer.
A few other considerations you may want to consider in terms of benefits (as FTE vs contractor)
- Medical, dental and vision benefits might be better
- 401k and perhaps there is matching, ESPP possibility
- There may be other perks too which may be available as FTE and not contracting.
- 0a month agoMid-Level Software EngineerTaro Community
thank you for the followup! Yes, those are all nice benefits too :)
- 1a month agoTech Lead/Manager at Meta, Pinterest, Kosei
You should absolutely take the full-time offer. The huge benefit of being full-time is that you unlock the ability to get promoted. If you get one or two promotions at a FAANG company, your compensation will be much, much higher.
As a contractor, your hourly rate is going to hit a limit.
- 1a month agoMid-Level Software EngineerTaro Community
thank you both! I will accept the offer with no reservations now!
