Prev. employer wanting consulting for free

[CRLLS]

In a similar situation. A few months after my leaving, I was asked for my recollection on a certain design that I had done. Since I was in good standing with them, I gave a 5 minute general response according to the best of my memory. I followed up with, for more detailed answer, I would have to review my files. Which by company policy, are still at the office and I do not have access to them at home.

I followed with, they get one free "recollection". The next will cost you...... That last part never happened, and I was not asked again for free advice.

 

[FUEGO]

As a consultant, the free advice conversation is a often problem. This is when you go into selling mode. Say something about how you understand their problem, then Go into how you would be excited to help them out with that, they are happy now. Ask when a good time come into the office and work on it, maybe with a time estimate. They will either balk at idea in which case move on, or they seriously have a problem that they want help with.

Be ready for "whats your rate"

Sent from my iPhone using Early Retirement Forum

When I was in consulting, I'd occasionally get phone calls from former clients who wanted follow up work or had questions. They'd get about 15-30 minutes of free time and some quick answers as I checked their payment history and made sure they weren't deadbeats. Then it would be "hey, let's sit down sometime in the next week and figure out what it'll take to get these issues addressed."

That usually made them realize they were getting a quick freebie, and that extensive help costs money.

 

[rodi]

I tend to agree with Walt on this. I try to stay on good terms with former coworkers (except 3 or 4, where the feeling is mutual.) If a work friend asked for info, and I could answer in less than an hour or two... no problem.

However if one of the 3-4 jerks asked... they could take a hike. But I think the odds of them ever asking me for something are close to zero... they'd use a proxy if they really needed the answer because they all knew I was fully aware they'd thrown me under the bus in the past.

I have good enough relationships with my former coworkers that one one of jerks "left to pursue other opportunities" suddenly 2 weeks ago I had 5 separate people email or text me with the "good" news she'd been let go. (This woman was in a position of power and had caused significant harm to my career and cost me financially by screwing up promotions that my managers had put in for me. There was NO love lost. I'm convinced Dilbert's "Catbert" character was based on her.)

 

[target2019]

As a consultant, the free advice conversation is a often problem. This is when you go into selling mode. Say something about how you understand their problem, then Go into how you would be excited to help them out with that, they are happy now. Ask when a good time come into the office and work on it, maybe with a time estimate. They will either balk at idea in which case move on, or they seriously have a problem that they want help with.

Be ready for "whats your rate"

That is all great advice.

If possible, only quote a price for the job. But probably difficult to do when ex-employer is involved, and wants to pay you for just an hour. In that case, make sure you get an agreement for a block of hours to cover the assignment.

 

[LoneAspen]

Jerk or not, business is business. You want something of value? Expect to pay for it. A former employer should not expect to treat you like the village bicycle.

Agree 100%.

Once I walk out that door, I'm no longer an employee, I'm an independent consultant, and I don't work for free.

They want to ask me questions? We'll have to draw up a consulting contract, and they better be prepared for an hourly fee of $500, minimum 40 hours.

I know the place I'm at wouldn't pay it, and that's fine by me. I don't want to deal with work-related items anyway after I walk out.

 

[Lakewood90712]

In the un-likely event of the city bringing me back on contract, I would work for a little over my prev. rate, with the city providing all facilities ( office /phone / mileage) and agreement to defend me in perpetuity, for acts/omissions connected with contract employment. Without that , I would not go back at any $ rate.

 

[M Paquette]

"We do have a few questions, if you don't mind."

"Not at all! Let me fax or e-mail you my consulting contract, and we can get started as soon as you've signed it."

And the conversation ends...

 

[nwsteve]

In the un-likely event of the city bringing me back on contract, I would work for a little over my prev. rate, with the city providing all facilities ( office /phone / mileage) and agreement to defend me in perpetuity, for acts/omissions connected with contract employment. Without that , I would not go back at any $ rate.

Having done this once, suggest you be sure to gross up your previous rate to cover your share of the FICA as well as any state employment taxes, as well as what they were paying to cover your benefits. As a rough guideline, 25-30% over your actual pay rate.
Nwsteve

 

[davemartin88]

Didn't read every post but I don't think it's unexpected to get some previous work related questions when you attend social events at your former work location? A 10 or 15 minute conversation doesn't seem out of the norm. I'd answer future or follow up questions (unless they are of the 10 second answer variety) with a comment that since I'm no longer on the payroll, I don't feel like I should offer any advice or other information.

If you really are interested in becoming a paid consultant, then taking a bit more time to help on this case might be a way to help you get a paid job. I had a few feelers like this when I left my job and it was pretty easy to make it clear that I wasn't interested in any consulting, paid or not and the questions stopped fairly fast.

The original post sounds more like an employee just looking to get some information/help/advice from someone knowledgeable to me and was just taking advantage of the situation.

 

[unno2002]

[FONT=&quot]Hmmm… If you are no longer an employee, is it even ethical for an existing employee to mention any aspect of a case to you?[/FONT]

 

[MRG]

[FONT=&quot]Hmmm… If you are no longer an employee, is it even ethical for an existing employee to mention any aspect of a case to you?[/FONT]

Wouldn't be from where I w*rked. I'd have to be bonded again, confidiality forms signed etc.

 

[gauss]

For me, it would probably depend on that terms that I left the employer.

Did I resign on my own regard or did they ask/push me to leave.


-gauss

 

[In-control]

If it were me and I was contacted to assist, answer a few ?'s, during the transition of a new employee then I would just be a nice dude and consider it professional courtesy.

Anything else is work and I would no longer be working for them so expecting compensation for my effort is reasonable. They should have offered that when they contacted you. Laughing at the idea is pretty insulting and I would end the conversation.

 

[daylatedollarshort]

If you do want a contract it is good to network and have people owe you favors. If it were me I would offer to give an hour of so of free advice and anything beyond that just say I had other part time work so if they want more time it would have to be for my hourly rate.

 

[MBAustin]

I got a call recently from a former colleague. Our former client (this goes back more than 5 years now) has refused to pay some more recent invoices because ostensibly he just learned that we didn't do some work we were supposed to do way back then, which is a load of horse hockey. Colleague asked if I would be willing to make a statement to lawyers on the matter. Said client generated a huge amount of stress in my life back then, so I am more than happy to help out for an hour or two. Mostly for revenge, if I'm honest.

 

[Ally]

I stayed home sick the last couple of days and heard my husband (retired) answer the phone. I noticed that although he started out friendly, he became terse with them and hung up quickly. I asked what it was about. It was the man they hired for his job, a previous outside contractor with whom my husband never got along. He always tried to cut corners, hide mistakes, etc. So he was calling to ask if my husband would volunteer his time to come in for a few days and help him understand some of the regulations. My husband was so burnt out when he quit and has no desire to ever go there again, much less to volunteer to teach someone something he should know, in that supervisory role. My husband advised him to take some refresher courses.

 

[Sunset]

Having done this once, suggest you be sure to gross up your previous rate to cover your share of the FICA as well as any state employment taxes, as well as what they were paying to cover your benefits. As a rough guideline, 25-30% over your actual pay rate.
Nwsteve

Good advice, as most folks don't realize the directly paid extra taxes when self employed, as employers hide it from employees.
30% is minimum increase needed.

 

[Senator]

30% is minimum increase needed.

Actually, 30% is the minimum, just to keep even. I would not do it for less than double. Find out whet the going consulting rate is, then charge that.

Most companies would have to pay their own 7.65% for FICA, a federal unemployment tax, FUTA, they would have to also pay a state unemployment tax, have a workers compensation policy. They would also have to pay benefits, like sick pay, vacation and holidays, pension and healthcare. And even benefits like tuition reimbursement and the like.

Add them all up, and it gets expensive. Unless you want to work, do not be the cheapest worker that they can find. They need you, they are the ones that need to pay.

 

[RockyMtn]

I have consulted off and on for the last six years. I don't even get out of bed for less than 2x my former hourly salary. Yes, it might be high but it serves to weed out the folks I don't really want to work for in the first place. I also find that with a higher rate the client tends to listen more carefully to what I have to say.

 

[Al in Ohio]

Twice your salary rate per hour is what I have charged. Considering they don't in effect use an internal OH multiplier for you as a contract employee, the project will usually still be showing your rate as lower on the budget than when you're in internal employee. It's a win win financial deal. Use the extra income to open an SEP IRA and pay expenses you now are responsible for.

The general rule is something between 2 and 3 time what they would pay you as a company employee. So twice is basically a bargain price for them. Anything less is a fire sale.


Sent from my iPad using Early Retirement Forum