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I can really only talk about the UK but I'd agree there has been a move away from better paid technical contract positions. Mostly this has been due to policy c
by NomDePlum 2y ago
I can really only talk about the UK but I'd agree there has been a move away from better paid technical contract positions. Mostly this has been due to policy change to remove tax advantages that can come with contracting.
For large scale organisations or government organisations navigating these sort policies just isn't worth it so they simplify it and apply the same policy to everyone, which means the risk/reward isn't quite as balanced as it used to be.
Ironically, for me at least this has increased what I make as I have years of navigating the landscape, but for others it's definitely less attractive.
The more insidious side of contracting is that there has been an enormous expansion in "outsourcing" contracts that are entirely about lowering organisational costs and employer responsibilities and are exploitative without any real benefits to those employed. The majority of those contracted in these cases are almost certainly made up of outsourced ex-employees or those that would in the past have been recruited directly by organisations. In the UK and local government departments are one of the worst, having been forced to make cuts to cope with diminishing budgets.
- disgruntledphd2 2y ago> I can really only talk about the UK but I'd agree there has been a move away from better paid technical contract positions. Mostly this has been due to policy change to remove tax advantages that can come with contracting. To be fair, the pre IR35 situation was super dodgy. To counterpoint that, I live in Ireland where there's absolutely no tax advantage to being a contractor (slightly less NI equivalent, way less benefits and a special dividend tax to prevent those kinds of shenanigans) and yet there appears to be a thriving contractor market, so it feels like there's more going on here. Now a bunch of those contract positions are far too low in terms of day rate, so maybe it's just an attempt to cut costs while giving naive people what looks like a good deal, because they don't account for all the costs.