Dear Bob ... I've been my department's IT Director for 3 years, after being promoted from within the IT department. I've enjoyed my job - but with the pending birth of my child, my wife and I agreed that what is best for our family is for me to join the ranks of the Stay-At-Home-Dad club (which is reportedly over 2 million strong). While I will miss many aspects of my job - I'm definitly looking forward to Dear Bob …I’ve been my department’s IT Director for 3 years, after being promoted from within the IT department. I’ve enjoyed my job – but with the pending birth of my child, my wife and I agreed that what is best for our family is for me to join the ranks of the Stay-At-Home-Dad club (which is reportedly over 2 million strong). While I will miss many aspects of my job – I’m definitly looking forward to the many challenges that my new role will present.My boss is happy for me on a personal level – but sad to lose me as an employee. We have discussed in vague terms that it would be mutually beneficial for me to work in some sort of part-time or contractual basis, both during the transition period and beyond. While the specific projects and tasks that I may perform will largely depend on how the new director chooses to run the department, my question for you concerns how best to negotiate for a fair and equitable working arrangement. For instance, is it better to be a part-time employee who works from home 10 hours per week – or an independant contractor? When negotiating compensation – should I work from my current yearly salary and come up with an hourly rate – or is there some other basis upon which compensation should be determined? – Soon to be Full-time DadDear Soon …Whether to stay connected as a contractor or part-time employee depends on how you want your current employer to think about your relationship. If you want them to think of it as a temporary, transitional situation, become a contractor. If, on the other hand, you want them to think of it as an ongoing role, you should remain an employee. There’s another benefit to you of remaining an employee. If you change your mind – especially, if you decide to return to the workforce once your new child enters school, already being a part-time employee will make it much easier if all you’re doing is increasing the number of hours you work.On the other hand … if you’ve always had the itch to try your hand at independent work, this could be just the opportunity to let you give it a try without much risk. If you do so, make sure you define your new relationship contractually. Yes, they know you and you know them. Yes, you’re operating in an environment of mutual trust and respect.That’s fine: As a contractor you need to establish an air of professionalism. That means a bit more distance and formality (not a lot, but a bit). And, by establishing a contract you create a framework for discussing and reaching agreement about expectations, instead of the vaguer “we’ll figure it out as we go along” that’s very tempting under these circumstances. It’s tempting, and it can work. It also, though, can lead to serious misunderstandings that can cause hard feelings that damage your ongoing relationship. There’s another dimension to this, which you’re probably aware of already: Your employer doesn’t have an entirely free hand in the matter, and neither do you. The IRS has guidelines for what constitutes an employee and what constitutes a contractor, whether or not the two parties involved prefer the contractor/client relationship. Among the tests are whether you use your own equipment, whether you have other clients, and how long the relationship has been in existence.A word on pricing, since you asked: I assume you’re going to be a full-time Dad because your wife has a lucrative position someplace that includes full benefits. That being the case, you have two alternatives. The better is to ask your soon-to-be-former boss, “What do you think would be fair?” You’re always better off if the other guy starts the negotiation.If that doesn’t work, your suggestion was on target: Just figure your current hourly wage and ask for it. Charge future clients a higher rate. I’d suggest double what you’ll be charging your current employer to cover downtime and the cost of sales, but ask around first, and find out what your competitors are charging. Good luck. And congratulations on becoming a Dad. It’s great work if you can get it.– Bob ——– Technology Industry