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I’m currently in a tough job market and the typical communication I get from recruiters is ‘Contract’ roles. These are positions that pay near market rates (but offer no benefits or PTO); they typically last up to 12-18 months. The main issue I have with contract work is that you’re essentially at will, and if a project is finished early or some other budgetary concern transpires, you are just a phone call away not to come back to work. This is while performing above average or satisfactory work.
Even if the contract is extended, the temp is rarely converted to full-time. This is because of a high conversion cost and no incentives to either the employer or staffing agency. The staffing agency makes money off of each hour your work, and the employer has a disposable severance-free workforce.
I have held permanent roles before, but currently “on contract”, with no stipulation that it will ever go full time (even during a temp-to-perm assignment where a changing business climate prohibited the conversions). When applying to FTE employment I’ve recently have had great difficulty in getting any response in the direct application process. This has nothing to do with me or my ability. I have years or experience in technology and analytical related fields, 3 college degrees (including a Masters) and excellent skills/references. My main concern is job security and I am tired of having to look for work after the engagement is over (not to mention lose all the connections and seniority).
Everyone and anything is "at will" and it doesn't matter if you're a full-time employee or on contract. If you really are after the security of not being fired without a bunch of warnings and documentation as your primary concern, you should look into federal employment where past the probationary period it is very difficult to fire you.
Everyone and anything is "at will" and it doesn't matter if you're a full-time employee or on contract. If you really are after the security of not being fired without a bunch of warnings and documentation as your primary concern, you should look into federal employment where past the probationary period it is very difficult to fire you.
Contractors don’t have to receive warnings or get write ups. Since there is no liability for a corporation to dump their contractor (ie no UI, turnover, severance, threat of lawsuit, or payroll expense), it’s much easier for the organization to dump the contractor for no legitimate reason vs a regular employee. Also the employer usually has to go up the chain of command for a dismissal of an employee vs just the hiring manager of the temp.
I think the only way out is to develop a unique skill that the employer judges to be critical.
I was in a similar position. I had worked for 15 months as a contractor. But I had a unique skill: I'm an expert engineer in the area of analog and microwave electronics. They have a hard time finding that skill set.
So I played "stick 'em up." I told them on a Monday that I would be leaving in one week if they did not offer me a full time career position.
Contractors don’t have to receive warnings or get write ups. Since there is no liability for a corporation to dump their contractor (ie no UI, turnover, severance, threat of lawsuit, or payroll expense), it’s much easier for the organization to dump the contractor for no legitimate reason vs a regular employee. Also the employer usually has to go up the chain of command for a dismissal of an employee vs just the hiring manager of the temp.
This is what happened to me a couple years back. I was working as a W-2 contractor and got a call one day that I was fired. Neither the agency nor the client provided any explanation.
Unfortunately, if you stay in the contingent labor force for too long then you brand yourself as "not good enough for a real career." Contingent staff are like 2nd-class citizens at the companies they work at (as distinct from for).
Pocketing-LOL. The agency pays Employer FICA, Employer Medicare, Employer Unemp insurance which is never set at 0%, Workers comp as state mandated, etc. So the $35 cost at least $39. Leaves $11 (22% margin as denominator is $50 revenue -not cost) to cover agency payroll, cost of office, advertising, etc.
Few contract positions pay that much. I've seen the contract that the client signed with the staffing agency, they were getting $50 a hour per person they were providing, and were paying as little as $16 a hour, no one I knew was making more than $22 a hour. Even with FICA, Medicare, etc, that's a healthy profit. The cost of converting a temp to full time depends on the contract the client has with the staffing agency. A larger company that uses lots of temps has considerable more leverage than a smaller company has. It's not wise for a staffing agency to risk angering a large client to get a few more bucks by charging a premium to let them convert a temp to perm.
. A larger company that uses lots of temps has considerable more leverage than a smaller company has. It's not wise for a staffing agency to risk angering a large client to get a few more bucks by charging a premium to let them convert a temp to perm.
True my last employer had subsidiaries who were told, up front per their specs, the employees payrate, the agencies markup, the fee % and when it would drop to a flat $500 to convert, and the client (our corp) was given copies and receipts of all ads placed for our positions.
The agency was making a small % of profit, but we gave them continuous volume, converting the good temps after 90 days, deep sixing the others, and trying new ones. We used that M.O. for both blue collar and professional clerical roles, while using a different agency for straight hire professional degreed positions.
Contractors don’t have to receive warnings or get write ups. Since there is no liability for a corporation to dump their contractor (ie no UI, turnover, severance, threat of lawsuit, or payroll expense), it’s much easier for the organization to dump the contractor for no legitimate reason vs a regular employee. Also the employer usually has to go up the chain of command for a dismissal of an employee vs just the hiring manager of the temp.
From what I've seen, contractors are the first to go. If a job is getting near the end and of ten people on it they will only need five, they will let the contractors go. That's the theory. But to any rule there are exceptions.
That is natural. Employees that are laid off have to be paid UI by the company's claim file and are often given severance. Contractors are not paid UI against the client company, don't get severance, and the agency will often try to F them out of UI compensation.
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