3 ms·
FTA: "...about one third of the companies that had laid people off subsequently rehired some of them as contractors because they still needed their skills." Th
by phpnode 17y ago
FTA:
"...about one third of the companies that had laid people off subsequently rehired some of them as contractors because they still needed their skills."
This happened to me a few months ago, I was made redundant by my employer only to be immediately rehired as a contractor because they need my skills. Now they have to pay me more than before and I get to work from home and use the saved commuting time on bootstrapping my startup. I'd never go back as an employee now. So it was a pretty inefficient cost cutting scheme on their part.
- holygoat 17y agoYou might be surprised at the amount of money they save by not having you as an employee. They save a few thousand a year on your desk; thousands on unemployment taxes in many states; SS and income tax contributions; healthcare benefits, stock awards, and bonus schemes; etc. Regardless, it's not necessarily intended to be a pure cost-cutting scheme: switching you to being a contractor essentially improves their liquidity. It's a little like someone with lots of cash getting a mortgage to buy a house: they could afford it, but they'd rather pay a little more over time to get additional flexibility.