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I guess US fire-at-will system should make contracting even more attractive option for good engineers: you do not get any social protection from being fired at

I guess US fire-at-will system should make contracting even more attractive option for good engineers: you do not get any social protection from being fired at any time unlike say Germany. One solid benefit less to justify pay difference. Is it the case?

ghaff 6y ago
Yes and no. First of all, you get benefits as a full-time employee that contractors don't get, like healthcare, disability insurance, and paid time off. (This all mostly boils down to money of course.) Probably more importantly, yes, a company can in general simply tell you your services are no longer needed one morning. However, in reality, absent either company downsizing or a documented performance issue, that is unlikely to happen out of the blue. Whereas not renewing a contract at the end of some project is commonplace. Employee status vs. independent contractors is actually something of a political football at the moment as contractors include both the stereotypical gig economy workers and freelance writers who want to freelance as well as contractors of other sorts.
- alistairSH 6y ago
  Health-care and other benefits would be priced into any contractor's fees. IE, for a full-time job that paid $100k + benefits, you'd need ~$160k on contract to make up for the additional taxes, self-paid benefits, etc. Looking at peers who struck out on their own, you can make good money as a contractor, but you typically need to be top of your profession and able to command massive fees. And like any business owner, the pressure to always have too much work usually ruins any chance at using the money for longer, more extravagant vacations.
dghlsakjg 6y ago
Not quite. If you are let go "without cause", meaning they fire you for no fault of your own, you are entitled to unemployment pay from the government. In my case it was around $800/week for about 4 months while I looked for a new position. It didn't replace my salary, but it was more than enough to pay my bills. Most large US companies also have a policy of not giving references beyond answering if the person worked there for the time claimed in the position claimed. There are a number of benefits to full time employment that good engineers appreciate. Healthcare (in the US), known reliable income (this can be a big factor for financing a house mortgage/car), various other benefits (I get massage credit, dental, vision/glasses, acupuncture, physiotherapy). The biggest for me is just avoiding the stress of feast or famine, managing business/taxes, etc..
- deleted 6y ago
  [deleted]
Mauricebranagh 6y ago
US contractors don't seem to be able to charge the premium I would expect in the UK.

ghaff 6y ago

Yes and no. First of all, you get benefits as a full-time employee that contractors don't get, like healthcare, disability insurance, and paid time off. (This all mostly boils down to money of course.) Probably more importantly, yes, a company can in general simply tell you your services are no longer needed one morning. However, in reality, absent either company downsizing or a documented performance issue, that is unlikely to happen out of the blue. Whereas not renewing a contract at the end of some project is commonplace. Employee status vs. independent contractors is actually something of a political football at the moment as contractors include both the stereotypical gig economy workers and freelance writers who want to freelance as well as contractors of other sorts.

alistairSH 6y ago
Health-care and other benefits would be priced into any contractor's fees. IE, for a full-time job that paid $100k + benefits, you'd need ~$160k on contract to make up for the additional taxes, self-paid benefits, etc. Looking at peers who struck out on their own, you can make good money as a contractor, but you typically need to be top of your profession and able to command massive fees. And like any business owner, the pressure to always have too much work usually ruins any chance at using the money for longer, more extravagant vacations.

dghlsakjg 6y ago

Not quite. If you are let go "without cause", meaning they fire you for no fault of your own, you are entitled to unemployment pay from the government. In my case it was around $800/week for about 4 months while I looked for a new position. It didn't replace my salary, but it was more than enough to pay my bills. Most large US companies also have a policy of not giving references beyond answering if the person worked there for the time claimed in the position claimed. There are a number of benefits to full time employment that good engineers appreciate. Healthcare (in the US), known reliable income (this can be a big factor for financing a house mortgage/car), various other benefits (I get massage credit, dental, vision/glasses, acupuncture, physiotherapy). The biggest for me is just avoiding the stress of feast or famine, managing business/taxes, etc..

deleted 6y ago
[deleted]

Mauricebranagh 6y ago

US contractors don't seem to be able to charge the premium I would expect in the UK.