Another "how should I feel about this job offer" question
May 11, 2018 3:51 PM   Subscribe

I got a job offer but it starts out as a short-term contract that may or may not be renewed. I thought it was a long-term job. So what now? Details below.

I got a job offer from a new start-up that just raised $25 million and I didn’t love the offer because the pay was on a per-project basis rather than a straight salary. But as long as I do the work, it’s not a bad yearly salary, even without benefits, so I agreed. Then I see the contract and it terminates three months later. I tell them I thought we had discussed something longer term and I want to know I can be committed to helping the start-up succeed in the long term. He says everyone is being hired on short contracts and he expects the majority of people will be renewed, but he can bump up the length of the contract. I get a new contract and it has an extra two weeks tacked on.

I’m sort of insulted, particularly because I have heard that some other people are being hired for salaries and/or on year-long contracts. I'm not sure I can confront him with this fact without revealing what people who were just hired told me and that wouldn't be cool to the people who told me stuff. And I don’t know if I got a worse offer because I am not as high-profile as some people they are hiring, I am a woman, or they aren’t sure if they will need the area they are hiring me for, but I’m annoyed. At the same time, I am going to be job-less in a few weeks when a current project I am doing ends and there aren’t a lot of great prospects out there for me. So, to be clear: it's not as if I would be quitting another job to take this job. They know this and they know it's not like they need to lure me away from something. This job would just start after what I'm doing ends.

Should I just do this and see it as three months of money to bridge me to the next thing? I could do that, but the field I work in is public-facing, so I think it would be embarrassing to be like “Hey, I’m gonna be working on this new thing!” and then lose my job 12 weeks later. I could quietly do it, but if I don’t promote what I am doing and I don’t drive some interest, it’s almost certain my job will be cut because I won’t capture the results I need to. If this startup succeeds though, it will be pretty reputable because they have brought a lot of really talented people on board. But again, I just feel like they don’t value me and and I feel insulted by the offer. Maybe I am overreacting? I may also be wary because last time I had a job for a specific term, I wasn’t renewed after the term ended (no one was, but people with longer contracts got paid longer than I did).

I haven’t responded to the new contract with the extra two weeks but I need to very, very soon. So, what should I do? Just take it and keep looking at what's out there?
posted by AppleTurnover to Work & Money (19 answers total) 1 user marked this as a favorite
 
Best answer: If you have no employment alternatives, take this contract. Feel free not to update your linkedin and social media to reflect this new position. Keep job hunting. It sucks to work and be job hunting but you'll be making new connections and money.

When you get a more permanent offer, you can negotiate your contract length, or just leave. It's ok to leave.
posted by Kalmya at 4:04 PM on May 11, 2018 [9 favorites]


Short term assignments should have better pay.
posted by theora55 at 4:41 PM on May 11, 2018 [7 favorites]


Best answer: If you need a job, take it, assume it will end in 3 months, do the job in good faith, and keep looking for a permanent position. If your current position weren’t about to end anyway, I would not recommend taking it. They should have told you right off the bat that it was a short-term contract, and the fact that you don’t even have the job yet and they’re already playing bait-and-switch does not speak well of them.

But, some money is better than no money, and it will pay the bills in the meantime. But be advised it is quite common for start-ups to sell you a bill of goods about pay and job security. It also couldn’t hurt to negotiate the wage. Worst they say is no and you keep looking.
posted by Autumnheart at 6:06 PM on May 11, 2018 [3 favorites]


What language does the contract have about if you decide to leave early? Are there any out clauses, penalties, non-compete clauses, etc?

In general I'd agree to just take the bird in hand, and then leave once you find the two in the bush. But before doing that make sure that you're in the clear if you DO decide to bail on this iffy company.
posted by Caravantea at 6:31 PM on May 11, 2018 [4 favorites]


an extra two weeks tacked on
Is a big red snapping flag.

--

$25M doesn't really indicate anything about the budget for employee compensation. Are they plowing all/ most of that into something like real estate or to acquire IP or something?

Was it private placement (and has the investors actually ponied up, or did they just sign subscription agreement) or an IPO? Not that it really matters since you aren't being offered any equity.

From what you've written, it scans to me that they have the money to hire new bodies to fulfill business requirements - but the leadership/ management isn't confident via either experience or imposter syndrome or having been burnt before about interviewing/ hiring acumen but are smart enough to give them an route for dropping "bad" new hires.

OR they have raised the $25M but haven't actually received the cash and are still in the hedging stage.

If this $25M was IPO, I'd nope out (they have more than enough cash to build up their core employee group and they're lowballing you). If it was private equity, I'd still nope out but ask for a better offer (upside of receiving equity) or a 12 month contract.

If you aren't desperate for the job (have enough savings to continue job hunting, have a reasonable chance for landing a different job through continuing to apply/ interview), I'd be very wary.

But it cuts both ways, too - if the job turns out to be complete shit, getting cut after 3-4 months is no bad thing. Money is money and you won't be miserable trying to keep getting money from these guys.

With a startup, unless I was certain of the credibility of intel about people being hired on "permanent" salaries, I wouldn't be too worried/ jealous about the "rumours."

Having "talent" - especially high profile (read: not actually talented, just looks that way on paper/ at parties) is completely meaningless if management is incompetent. "Talent" in some sectors is often code for "being able to raise money," draw a good salary, fail out, join next company to raise money for them, take a nice cut, fail out, rinse, repeat.

Walk, but not necessarily run away.

Play the game. You feel justifiably insulted. Turn the table around and see if being competent/ a player will get them to re-evaluate what you're worth to them.
posted by porpoise at 6:48 PM on May 11, 2018 [1 favorite]


If you *are* offered equity - pay attention to whether they are stock grants or stock options.

Options are usually nullified the second that you are terminated from the company (some options have up to 6 months after termination before they expire; read the fine print in the contract).
posted by porpoise at 6:52 PM on May 11, 2018


Best answer: Well, this sounds better than absolutely nothing coming in, so you might as well take it and still job hunt if you have no other options. Unemployment is fairly peanuts and doesn't last forever, so take the job.
posted by jenfullmoon at 6:56 PM on May 11, 2018


Response by poster: There's definitely not equity in this for me. They don't value me enough to give me a year-long contract or an actual salary with benefits, remember? I did ask for more money and got it, but it still was a weird offer. The $25 million just means they took the money and decided to expand rapidly, which means adding people like me. My guess is they are expanding and they will see which expansions float and which don't, which means my position might get cut after the contract term if it doesn't float.

I'm frankly just really annoyed that after I said what they offered was shorter than I expected, he said he'd add a month and then only added two weeks. I feel like saying, "hey, what's up with adding two weeks?" but I also don't want to be a total pain in the ass and unnecessarily burn bridges. I just can't stand dealing with people who don't seem straightforward. He told me, "let's just get going and I'm sure the contract length will end up being a formality and it will be renewed." But I don't believe that because if it was just a formality they would've offered me a longer contract.

I'm torn because I feel like this is already in motion. I thought it was a year-long offer so I started prepping to do the job and telling people about it. And if I were reading this question as a stranger, I'd say: Take the job either way because you have nothing else lined up, and then make a decision later as to whether you want to try to push and make them renew your contract, or simply use it as a bridge to take you to whatever comes next. I feel like that is the correct advice, to take the job and then decide how to use it. But my emotions - feeling sort of insulted - are getting in the way a bit. I still haven't responded to the new contract and I really need to. The embarrassment of having this job, the world knowing it (again, public-facing career) and then only lasting a few months doesn't sound enticing either.

As for an exit clause, it seems either party can give 30 days and terminate it anyway. So maybe the contract doesn't actually matter. But in my experience, even when companies let people go, they just let the contract run out and keep paying them unless it's a firing.
posted by AppleTurnover at 7:12 PM on May 11, 2018


I’m going to go against the chorus here. How stable are you financially? If you have enough for those three months, I would decline and use that time to find a better job. I’d wager that working and finding a job is very tough in order to get a high quality job - you’re going to have way less time to prepare, interview and research. I also think it’s worth considering the signal you’re giving future employers when they see you’ve just started a new job or realizing it’s a contract. They may not offer you as much as or see you as attractive candidate. This strategy only works in assuming you will work on finding a job as if it’s your job and you have enough money to be comfortable.
posted by treetop89 at 7:15 PM on May 11, 2018 [3 favorites]


I'd be insulted to. But when I'm insulted, I like to get whole foods takeout. Which is best supported by a job.

The person you are negotiating with sounds like a jerk. But you probably won't work with him. Restart your search now and drop them when something else comes along. For some reason, people like to hire people with a job. And you will still be making connections at this new job.
posted by Kalmya at 7:18 PM on May 11, 2018


But my emotions - feeling sort of insulted - are getting in the way a bit.

I'd take the job, be "myself," and if things worked out - great!

If they didn't, whatevs. Bye fuckers. Another life lesson added.

You can continue to feel insulted - and maybe even spread it around - after you've done a stint with them.

My (industrial) postdoc was with a crap company where I walked away from them pre-emptively instead of rejecting an insulting salary extension offer - my bashing the former company was a positive in a lot of interviews because the reputation/ delivery from that former company was absolute trash and I learned a lot about how not to do things.
posted by porpoise at 7:45 PM on May 11, 2018


Just an opinion, but 30 days is way, way, way too long for an escape clause, especially in a contract that's only three months (and a bit) in total. Seriously, they expect you give notice equivalent to one-third of the contract? That would be a big no and a big red flag to me, and one area that I would push back on before signing. They can easily amend the contract for something more reasonable like two weeks notice, if there has to be a notice period at all (I presume a lot of this depends on where you live and local employment laws). My approach tends to be if they can't commit to you, you shouldn't be obligated to commit to them.
posted by sardonyx at 8:35 PM on May 11, 2018 [1 favorite]


Best answer: Unless you really don't need the money, I'd take the job. There are all sorts of reasons they might've offered you a short-term contract. You mentioned some potential reasons. My guess is they know you have nothing else, so they know you're sort of between a rock and a hard place.

But here's your chance to:
(a) make some money for a few months while conducting a search for other jobs
(b) impress them and get your contract extended / get a salaried offer
(c) network with the other high profile employees working there

Re: embarrassment, if you do leave after your contract ends and you don't have something else lined up...who cares? Jobs end all the time for lots of reasons. You can tell people you didn't like the company / you didn't care for their values / it wasn't a good fit.

I'm frankly just really annoyed that after I said what they offered was shorter than I expected, he said he'd add a month and then only added two weeks. I feel like saying, "hey, what's up with adding two weeks?" but I also don't want to be a total pain in the ass and unnecessarily burn bridges.

I don't think you'd be a pain in the ass by mentioning this. Just say, "The new contract looks good, thanks! Just one thing, there's a typo - the extension was supposed to be a month and it's only two weeks, mind fixing that up before I sign?"
posted by whitelily at 8:39 PM on May 11, 2018 [4 favorites]


Best answer: They don't value me enough to give me a year-long contract or an actual salary with benefits, remember?

I mean, it sounds like they should probably value you more than they do, but it sounds even more than that like they don't actually have a ton of confidence in their own business plan.

I think the key here is that you're only on a contract that long, so when you talk to people about it, only talk about it like it's a short-term contract! "I'm working on this thing because it seemed interesting, and then I'm looking for new opportunities for long-term," is a totally valid thing to be doing in a startup kind of space, seems like.

It hasn't been me, but as a dev, I have several friends who have gotten way more ridiculous offers than this from startups that seemed to think they were perfectly normal. Like getting offered equity-only from a company that was several rounds of funding deep, didn't yet have a working app, and had no plan for how they were going to monetize, and even there an amount of equity that was only going to be worth anything at all if they turned out huge. (They seem to have since folded.) Or one person who got offered what was supposed to be internship-to-hire as a new bootcamp grad at a rate that was below a living wage, and then got dropped as soon as the state internship grant money went away. So I'd call this a few steps above actually insulting. It's ridiculous, but not actually insulting, if that makes sense? You're totally allowed to not take it seriously but still just do it for the cash and then move on. Or not take it at all. But startups handling staffing badly just seems to be a thing, and probably not personal.
posted by Sequence at 8:43 PM on May 11, 2018 [1 favorite]


If you do accept this offer, make sure to cash your paycheck every week right away (or check your bank and make sure you got paid.) Once I accepted a job at a startup, and the HR person left after a month, saying that they had to think of their career. I found out that this company had not been paying many of the placement agencies for the contractors that were working for us - some not on time, some not at all.

Also when you do start working for this company - they've already shown you that they're absent-minded at best, and overly optimistic at worst. Get everything in writing, and even then don't trust that they're going to make good on anything but a ping pong table (for that "feisty-startup appearance" {similar to "new-car smell", but with more funk} to lull in others and make it look like There's Actually A Company There.)
posted by Tailkinker to-Ennien at 10:19 PM on May 11, 2018


Is it two weeks snapped on, or renewable in two week increments upon mutual agreement? My last contract was the latter and we used it to keep me beyond December on through March.
posted by tilde at 7:42 AM on May 12, 2018


Best answer: I could have written this myself two months ago with the exception that they were very clear about the contract length when they made the offer, even though I'd applied for a full-time, permanent position. Spoiler: I took the job. However, I've been interviewing for other positions and keeping my ear to the ground for new leads just in case this doesn't work out and I find myself out of a job in a month. But so far, I've been treated like a permanent employee in every way (except for not having benefits). My higher-ups speak as if I were going to be here long term, and I'm planning projects that extend beyond my mid-June contract expiration.

I spent the first couple of weeks kind of angry at the job and my situation, having felt I was the victim of a bait-and-switch. But I made the conscious decision to act as if I were going to be there for a long time and not treat this as a temporary pitstop in my career. It can be difficult at times to reconcile with the active job search, but it's made for a more enjoyable experience mentally here. I haven't changed my LinkedIn or made any wide announcements to my social networks, and I've been honest to those that do ask that this is technically a temporary position. I'd been doing freelance work before, so if it winds up just being a long-term freelance job, then it is what it is.

In the end, I've really enjoyed this job and I'd be very surprised if I am not offered a full-time permanent position at the end of the contract. I'm glad I took it, as it's been a good fit and I feel like it was a good opportunity for me to prove my worth and go into any potential new negotiation with an edge, as I can say, "Hey, look what I've already done for you in only three months, we both know I'm worth more, so let's talk about upping the salary and/or benefits to reflect that."

I'll keep you updated on what happens next month.
posted by Fuego at 10:08 AM on May 13, 2018


Response by poster: I couldn't let the two-weeks thing go. It was too weird to pretend he didn't say one thing and do another. It felt like a bad foot to start off on to let that slide. I mentioned it in a non-accusatory way, as suggested above, and I got a new contract. I signed it. I appreciate the advice here and I also spoke with some colleagues in my industry who recommended I do it.

I knew all along what I should do, but I was feeling cranky and taking it perhaps a little more personally than I should. After I signed, I got an invite to be flown out to meet with "a few core people" who are also joining the team, which I guess is promising? We'll see how this goes. Hopefully it's just bad communication as a lot of moving parts are being put together, nothing worse than that, and it all works out in the end.
posted by AppleTurnover at 12:25 AM on May 15, 2018


Update on my situation that I outlined above: I got a full time offer. This was my first week on the new permanent contract. They tried to offer me the same salary but I took the opportunity to negotiate a raise based on my performance so far. Not quite as large as I wanted, but I also managed to negotiate a year-end bonus. Plus, now I have employer-sponsored health insurance!

Hope the outcome is as positive for you, AppleTurnover.
posted by Fuego at 9:47 AM on June 22, 2018


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