2 ms·
> Contractors can be cheaper than employees, despite paying a higher salary. The reason is that they don't need to do so much legal work or pay their insurances
by Amezarak 12y ago
> Contractors can be cheaper than employees, despite paying a higher salary. The reason is that they don't need to do so much legal work or pay their insurances and etc, etc.
Unless they're independent contractors, I've never understood how this can be true. Sure, the company paying the contracting company doesn't have to directly pay for that kind of thing, but the contracting company does, and on top of that, has to earn a profit, and that should all be included in the billing rate.
- busterarm 12y agoHaving worked for several subcontractors, I can tell you there's a vast difference between the cost of Microsoft doing HR and a much smaller company doing HR. Microsoft probably keeps good records and actually has good HR staff. A lot of subcontractors don't keep very good records, outsource their HR staff to India and aren't against closing up shop and reincorporating with a new name. Edit: Out of 5 of these companies that I actually needed employment verification from after leaving, only 1 of them could actually locate a record saying I worked from them. I always have to go to pay stubs.
- mcguire 12y agoThere are flexibility issues as well. I have contracted with IBM many times over my career, and when the project goes belly-up, the company reorganizes, the division you were working in disappears, and employment contracts aren't renewed. No muss, no fuss, no layoffs.