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How does that work out? I mean, it seems like if someone went to their employer and said, "I'm going to stop working for you, but if you pay me more than you a
by javert 14y ago
How does that work out?
I mean, it seems like if someone went to their employer and said, "I'm going to stop working for you, but if you pay me more than you are now, I will sell you software," they would say, "No thanks."
- jacques_chester 14y agoI quit my job for family reasons; they asked me to stay on as contractor. It's a surprisingly common pattern, I'm told. I am developing a niche tool for business at the moment. To get my initial customers I expect I will go visit them in their offices, ask questions and show them the prototype. Old fashioned, but I've picked an area where improving performance by a few percent can mean millions of dollars difference in outcomes.
- tptacek 14y agoBusinesses are rational. If they need what you're selling, and buying it from you is more cost-effective (inclusive of risk) than building up an internal process to deliver it themselves, they'll buy it. This apart from the fact that transforming an employee to a contractor is often a net financial win for a company. Not just because of benefits, but also because when the contractor finishes, you don't have to find a way to fire them.
- jacques_chester 14y agoRight. Another thing that contractors are good for is mopping up the unspent money allocated to various line items. Most places with a union/enterprise bargain contract don't allow the employer to a project without a full time equivalent wage attached somewhere in the budget. So when there's a few thousand left, it might be difficult to spend. Enter, stage right, the contractor, to whom no such rules apply.
- andrewtbham 14y agoi have a friend who was laid off, but then a year later they hired him back as a contractor at a much higher rate.
- bdcravens 14y agoYou're assuming that because the contractor has a higher paycheck that it's more expensive. This isn't necessarily true.
- rmc 14y agoif someone went to their employer and said, "I'm going to stop working for you, but if you pay me more than you are now, I will sell you software," they would say, "No thanks." Instead what happens is: someone went to their employer and said, "I'm going to stop working for you, sorry, but I'm quitting to set up my own buisiness. I know about the business, I know about the technology. I know you and know what you're like to work for. You know me, and know what I'm like to work with. You know that I will know what you mean when you say 'The featured image for this works for a promoter, but not a sales client'. You don't have to take the time & effort to find someone new who might not work out, We can have a productive and mutually benefitial business relationship." The paycheck might be higher, but the company doesn't have to pay hidden costs like tax, pension, schedule maternity/paternity leave, sick days or pay holidays.