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United States Businesses

The Rise Of The Contract Workforce (npr.org) 229

An anonymous reader shares a report: A new NPR/Marist poll finds that 1 in 5 jobs in America is held by a worker under contract. Within a decade, contractors and freelancers could make up half of the American workforce. Workers across all industries and at all professional levels will be touched by the movement toward independent work -- one without the constraints, or benefits, of full-time employment. Policymakers are just starting to talk about the implications.

[...] It's not just business driving the trend. Surveys show a large majority of freelancers are free agents by choice. John Vensel is a contract attorney at Orrick who grew up a few miles from Wheeling, on the other side of the Pennsylvania state line. In his 20s, he was a freelance paralegal by day and a gig musician by night. "I actually wanted to be a rock star," he says. But these days there are no edgy vestiges of a former rocker, only a 47-year-old family man cooing over cellphone photos of his children, Grace and Gabe. In the two decades in between, Vensel worked full-time corporate jobs. But he was laid off in 2010, on the eve of his graduation from his night-school law program. He graduated with huge piles of debt, into one of the worst job markets. For a time, Vensel commuted three hours round-trip to a full-time job in Pittsburgh. But more recently, he quit and took up contracting to stay near home in Wheeling.

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The Rise Of The Contract Workforce

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  • by Anonymous Coward on Tuesday January 23, 2018 @02:30PM (#55988005)
    I've worked hard, lived below my means, and saved ferociously for two decades now and I'm getting ready to retire with a 7 digit investment portfolio in a year or two before I'm 50. I feel sorry for the young people just entering the workforce, what a different scenario they will be facing with the Republican destruction of the social contract and delivering all power to corporate America. It's a much more lopsided equation than it used to be. As my late dad used to say, BOHICA. Bend Over Here It Comes Again.
    • by houstonbofh ( 602064 ) on Tuesday January 23, 2018 @02:34PM (#55988027)
      The social contract has been deteriorating for a long time, and it was not only republicans doing it. Loyalty from both sides (employers/employees) has faded to almost nothing now. A friend and I were working the same job in 2000. He is still there and has more vacation then he is allowed to take, and good money. But I have time off whenever I want and also good money. Contracting works for me!
      • by cayenne8 ( 626475 ) on Tuesday January 23, 2018 @03:13PM (#55988315) Homepage Journal

        Loyalty from both sides (employers/employees) has faded to almost nothing now.

        This has been going on for a LOOOONG time.

        At least a couple of decades ago, I realized that there was no loyalty of the employer to the employee.

        The W2 employee is JUST as readily fired/let go as the 1099 contractor.

        I figured, hey, if you have the job security of a contractor, you might as well get the bill rate of a contractor.

        Just make sure to incorporate yourself...makes life easier.

        I went the S-Corp route, never looked back.

    • Congratulations on achieving financial independence but I fail to see how it's only the Republican fault that the wealth gap has increased. I can't even lay the blame on both parties because the global economy allows the wealthy more avenues to maximize their assets.

      I also fail to see why people entering the workforce today can't follow the same process. Live below your means, save like a bandit, and assume the government is incompetent and rely on them as little as possible. The recipe works. If the econom

    • you shouldn't feel so safe. It wouldn't take much to wipe out that investment portfolio. 7 figures isn't a lot by today's standards and rest assured someone out there is already thinking about how to swindle you out of it.
  • by houstonbofh ( 602064 ) on Tuesday January 23, 2018 @02:31PM (#55988011)
    For the last 15 years, I have been contract with short "real jobs" in the middle. But after 6 months to a year I have fixed the issues and it is maintenance. I do not like it, and they do not like paying my salary for it, so on to the next. Feeds my ADD. :)
  • try before you buy (Score:2, Insightful)

    by js290 ( 697670 )
    Contract workers is effectively "try before you buy" on an employee. It's getting increasingly difficult to fire poor performing employees. Contract is a good bet for employers.
    • by AF_Cheddar_Head ( 1186601 ) on Tuesday January 23, 2018 @03:26PM (#55988411)

      It's getting increasingly difficult to fire poor performing employees. C

      With the proliferation of "Right to Work" laws and states it has gotten much easier to get rid of any employee for practically any non-discriminatory reason, including their politics.

      Non-union employees have essentially zero job protections and with the death of unions we have fewer and fewer union employees.

      • Best option is to find a unionized government job; I hear they pay even more than equivalent private sector now (due to stalled wages) and benefits and pensions are good.

        Overall, though, with automation and off-shoring we're headed for a train wreck.
    • Contract workers is effectively "try before you buy" on an employee.

      I prefer "rent to own"...

      Actually, my favorite story was that a certain place wanted me to start earlier, so they moved money out of their furniture budget to pay me. So there was a running joke about my name being "Otto Man" or "Chester Field".

  • by H3lldr0p ( 40304 ) on Tuesday January 23, 2018 @02:35PM (#55988033) Homepage

    The situation sucks. Not only in the present but it was make the future suck as well because everyone caught in it are going to feel a crunch come retirement, if they ever do get to retire. There's no guarantees with the mighty 401(k) and IRA that are tied to market forces which we have no command or control over.

    There are structural problems with our society that allow this to happen. It's not only coded in our employment laws but also in the anti-union bent of corporate profit imperatives. We want people to take responsibility for their own success but remove every single tool that might be used for that through black-letter law or through making it so expensive in seeking redress of wrongs it become untenable, even in principle, to see it done. We allow for unilateral NDAs to be upheld. We allow for so much to be hidden away that even if I were to invest the time (as if I had the time to invest) looking into a potential employer, I wouldn't find be able to find the problems they have.

    So what do you want us to talk about here? We know about it. We work as well as we can within it. There's public outcry but no political will to do anything. This is the endpoint of 40 years of corporate political influence. What's there to be surprised about it?

    • Re: (Score:2, Insightful)

      by El Cubano ( 631386 )

      The situation sucks. Not only in the present but it was make the future suck as well because everyone caught in it are going to feel a crunch come retirement, if they ever do get to retire. There's no guarantees with the mighty 401(k) and IRA that are tied to market forces which we have no command or control over.

      I disagree. It allows tremendous freedom to those who prefer that sort of employment arrangement. For example, if you only want to work 6 months out of the year, that is sort of difficult to accomplish with a traditional full-time job. However as a contractor or gig worker, you can easily do that if you want.

      Also, if you are concerned about the markets, then invest your IRA or 401(k) in something other than stocks. You do know that you can invest in precious metals, government bonds, real estate, foreig

      • by imgod2u ( 812837 )

        The way the current law is heavily favors the 9-5 employee over contracting. Which I would venture distorts the number of jobs that could and should be contracting gigs out there.

        Someone choosing to contract over being a W-2 truly is disadvantaged in many ways. This includes taxation (pays the full FICA tax), benefits (no individual health insurance market worth a damn), worker protection, vacation/sick/parental leave and retirement savings (401k's way superior to IRA's).

        Even if the hourly rate is 2x, it st

        • by cayenne8 ( 626475 ) on Tuesday January 23, 2018 @03:42PM (#55988539) Homepage Journal

          Someone choosing to contract over being a W-2 truly is disadvantaged in many ways. This includes taxation (pays the full FICA tax), benefits (no individual health insurance market worth a damn), worker protection, vacation/sick/parental leave and retirement savings (401k's way superior to IRA's).

          Even if the hourly rate is 2x, it still isn't quite enough to close that gap.

          I'll agree that independent contracting is NOT for everyone, but if you want the freedom and wish to put in the extra work, it can be quite lucrative and satisfying.

          First, with regard to the FICA (and medicare, the "employment taxes"). Yep, you have to pay both sides of this, HOWEVER there is a way around this somewhat.

          You can form a S-Corp. With this you pay yourself (as sole employee) a "reasonable"salary, and you only have to pay the employment taxes on that "reasonable salary".

          Example: Say you bill out $100K annually.

          You pay yourself a "salary" of $40K. Throughout the year, you pay fed and state taxes and both halves of the FICA/Medicare taxes ONLY on that $40K.

          At the end of the year, the remaining $60K, you deduct your business expenses, etc....and then the remainder falls through on your personal taxes, and you only pay federal and state taxes on that. That is your "disbursement".

          Yep, takes some paperwork shuffling, but can be done.

          For vacation/sick and health and retirement, well, you have to know what your bill rate is to negotiate.

          And it is likely quite a bit more that double as you'd mentioned.

          Over the years, I've been quite happy with my insurance I buy..I get a "high deductible" policy, usually with like $1300 deductible. With this I can open a HSA (Health Savings Account) that I fund fully each year Pre-tax. I pay my routine medical costs with this and the insurance policy is there for emergency care. Actually, after Obama care, the insurance part got MUCH more $$...due to the requirements to have stupid coverage I don't need (I don't ever need prenatal or maternity coverage, I'm a guy and not having kids)....but even so, you do your bill rate to cover that. It's not that difficult, and the coverage MORE than serves me well with my medical needs. And I am a bit older now, some pre-existing stuff, but still...is not that much a strain.

          I have investment accounts set up and I put money way pre-tax to the max, and some that is post tax. I have in my bill rate enough to cover me to take off about 3 weeks a year sick/vacation.

          Yes, it takes more of my time, but I get the benefits of making my own hours, taking off when needed. I'm fortunately enough to work remotely, so I can really set up shop wherever I want..I can be working from a bar in Key West if I wish....

          :)

          But no, it isn't for everyone....but it can be a nice and rewarding way to work. You bring in a LOT of $$, but you have to be disciplined enough to save for taxes, retirement and expenses....but even after that, you can make enough to have a good bit of disposable fun money too, depending on the field you are in.

          It helps if you have people skills too...to get and KEEP longer term gigs.

      • Agreed..

        But most of the complainers out there live beyond their means and work as contractors to collect that extra bit of cash to spend now, instead of saving it for the future. I know because I've had people tell me that's why they contract.

        Too few people take responsibility for planning for their financial futures and end up looking at trying to live the 20 years after retirement on Social Security alone. When they get there, the suddenly realize that what Social Security pays doesn't scratch the sur

    • Re: (Score:2, Insightful)

      by bobbied ( 2522392 )

      There are structural problems with our society that allow this to happen.

      What the.... Seriously?

      You DO remember from history class that Social Security, Medicare, 401ks and pension plans didn't exist for the bulk of the USA's history. Seems to me that prior to the great depression folks lived pretty well and dealt with retirement just fine, caring for their own families, not just letting government do it.

      The ISSUE in society is the "I have to have it now" bent we generally all have and a total lack of discipline in financial planning for rainy days. It used to be that being

      • by fluffernutter ( 1411889 ) on Tuesday January 23, 2018 @03:49PM (#55988593)
        Yes it's the same old 'sock your money away until you die' philosophy. People don't know when they will die. My wife has been seriously ill twice, should we be living an ultra-frugal life now and basically making our lives miserable and never doing anything fun together as a family so I can have a big pile of money once everyone has gone their own separate way? I understand that there are over spenders, but what I am saying is that there are under spenders too.
        • Re: (Score:3, Insightful)

          by bobbied ( 2522392 )

          There is a whole lot more over spenders than under spenders.

          My wife almost died a couple of times too when my kids where very young. Once from pancreatitis when a retained gall stone blocked her bile duct even though her gall bladder had been removed 2 years before and the second time when she came down with sarcoidosis stumping her doctors for almost a week. My kids where both in grade school at the time. So I know what you are talking about.

          Not knowing when you are going to die is only an excuse to sp

          • by fluffernutter ( 1411889 ) on Tuesday January 23, 2018 @04:55PM (#55989025)
            What if saving for retirement is beyond this balance for many people? There are a lot of people who don't make enough to both save for retirement and live a comfortable life. Just because they haven't socked money away doesn't mean they are financially irresponsible.
            • I'm calling BS on this for most people.. I dare say MOST people CAN and should save for retirement.

              If your earnings don't allow for saving for retirement, then you are living at the subsistence social security level for your whole life and won't be shocked when retirement happens. So if you think "comfortable" is something above what you could do on SS when you are old and your current income allows you to spend more than that, you are trading today's "comfort" for decades of uncomfortable poverty if you

              • Most people are not addicted to credit cards. Most people are just trying to make the bills from month to month.
                • Most people are not addicted to credit cards. Most people are just trying to make the bills from month to month.

                  Living paycheck to paycheck has little to do with income and a lot to do with spending. I know people making $200K per year and living paycheck to paycheck. I know people making $30K per year who have healthy savings.

                  • We're not talking about those people.
                  • by Uberbah ( 647458 )

                    Living paycheck to paycheck has little to do with income and a lot to do with spending.

                    Sounds like the "up from your bootstraps" mantra. Except you look at statistics and the #1 correlation to how far you get in life is "how much money my daddy had". When people can't make a living wage, they have no choice but to spend what they make.

                    Bourgeoisiesplaining to the poor is incredibly obnoxious. "Hey poor person, eat Ramen for two meals a day for four decades straight and you can afford a house you can enjo

                    • Living paycheck to paycheck has little to do with income and a lot to do with spending.

                      Sounds like the "up from your bootstraps" mantra.

                      Nonsense. It's certainly true that there is an income level below which things become impossible. But that is actually not the case for most people in the middle and lower-middle class in the United States.

                      Bourgeoisiesplaining to the poor is incredibly obnoxious.

                      And so is inventing assholish words like "Bourgeoisiesplaining", as is using them with people who didn't come from anything remotely like "Bourgeosie". I'm also not talking about those who are actually poor, but the large majority who do have enough to live, but just don't manage it well.

                      Please actuall

                  • Living paycheck to paycheck has little to do with income and a lot to do with spending. I know people making $200K per year and living paycheck to paycheck. I know people making $30K per year who have healthy savings.

                    True, but there is a limit. If you pay $500/month rent, that's 6K a year. Big chunk of that 30K just for one thing. And many places don't have rents or house payments that low. Add a car, utility bills, phone bills, and there's not much left. Then the car breaks, your roof leaks, you get sick. You're in trouble even if you haven't screwed up financially.

      • Re: (Score:2, Insightful)

        by Anonymous Coward

        Except prior to the Great Depression, half of all Americans lived in poverty, and 80% of seniors did too. Let's not go back to the Gilded Age.

        • Again that's BS.

          DURING the great depression we had those numbers, but not before the stock market crashed.

          Most people lived in rural society and could grow their own food on the family farm for most of our history. Poverty based on income doesn't usually measure barter or what you can grow on your own. So it's kind of hard to describe "poverty" in terms of per capita income back in the day.

  • Oh, the horrors!

    Sounds like a typical commute into London, rather than some extreme bad case.

    One of the reasons that I have worked for myself for all but ~6 weeks out of the last ~30Y is to have a bit more control over commuting...

    Rgds

    Damon

    • by jez9999 ( 618189 )

      A typical commute into London IS an extreme bad case.

      • by DamonHD ( 794830 )

        Well, more subtly, I believe research suggests that the maximum tolerable one-way commute across many countries/cultures is 90 minutes, and in the case of expensive places such as London people move just far enough away, saving on property prices, to make that close to the typical commute for the area. And people do indeed commute in from a long away away from London, such as Brighton (and the reaches of Essex and Kent).

        From where I am now I can be from my desk at home to a desk in the City of London in 75

  • First job I had out of school was a lab where nearly everyone was "permanent contractors", where they were just using it as a way to avoid paying benefits. Interviewed another place where the lab had a 3 month opening because they had a 'permanent contractor' they really liked but couldn't keep her year round (unspoken: because then she'd have cause to sue for benefits, as I understand things). I don't know if it is still that bad but it sure led to high turnover and low morale at those places.
    • by mtmra70 ( 964928 )
      And the article needs to clarify a little. They mention "under a contract" then they mention "without benefits/full-time employment/etc'

      Here are the different types of "contractors": -Traditional full-time employees who also have a contract with the company. Probably less common in the US, but more common elsewhere. Could also be considered union workers. They receive full benefits from the company, but have a little extra positioning when it comes to not getting fired for no real reason.

      -Staff augmen
  • by Quantus347 ( 1220456 ) on Tuesday January 23, 2018 @02:46PM (#55988105)
    The dirty little secret of this trend is that it's happening because the employers increasingly getting away with policies that in past times would have been called mistreatment of their workforce. The American workforce has increasingly moved out of the blue collar industries that had fought long and hard for Regulatory and Union protections, to the comparatively unregulated and unprotected world of white collar drudgery. Things like Union protections and Pension Programs are a things of the past, and loyalty (in either direction) has been entirely removed from the equation.

    The vast majority of people would not cast off the security of a large organization and take on all the risk of going freelance while there are alternative. But increasingly the Companies are asking for more and more from their employees and giving less and less in return, to the point where the Hassle&Restriction of a large organization out weights diminishing expectation of Job Security that is the whole point.
    • Comment removed based on user account deletion
    • by Greyfox ( 87712 )
      Yeah, and being a full time employee doesn't really guarantee you any safety. The usual suspects around here are legendary for their layoff cycles. You'll run into people here who've been laid off two or three times by the same company. Corporate benefits have been going to crap lately too -- you might get an extra bonus a year out of them, that might help with the difference between the FTE and contractor salaries. I made the mistake of accepting a stock grant, which accidentally made a decent amount of mo
  • by RyanFenton ( 230700 ) on Tuesday January 23, 2018 @02:46PM (#55988107)

    ...if we had a basic floor by some mechanism, where someone couldn't fall below, leading to a semi-permanent drain on society, and a society that was unwilling to have people die for their own benefit.

    You know, something closer to the biblical ideal espoused in the 'new testament' part of the most consistently referenced book in this nation, but with the freedoms espoused in the other largely revered document, our constitution.

    A 'basic income' system would work, but some mix of unions/safety net if that wasn't possible could at least mitigate those falling through the cracks.

    Education also helps - but everyone can be suckered, or just have the bad luck to be taken advantage of for too long. Even the smartest folks can live most of their lives in abject circumstances for the sake of loved ones, or ideals where that intelligence doesn't help them.

    A more ideal case would be if everyone had some base line, could be sure that everyone they loved would at least survive in some level of comfort, and were free to help, not in the confines of a arbitrary-hour work week, but could use tools to be available whenever made sense, without fear of becoming bankrupt later in life for pursuing whatever they felt helped others the most.

    Money should still matter - what folks are willing to reward more or less can still matter... but it shouldn't be increasingly the ONLY thing that matters, above life, death, and everything else.

    Shared social value should matter for SOMETHING, shouldn't it?

    Ryan Fenton

    • by DMJC ( 682799 ) on Tuesday January 23, 2018 @02:53PM (#55988157)
      heh you just described literally every other country in the western world.
      • I know - and I agree - but most Americans are completely unaware of, or told vehemently wrong things about every other social system in the world.

        Asked about the same ideals that make those other industrialized nations work objectively better towards those ideals - like healthcare, social mobility, education, etc - they would agree wholeheartedly with the ideals and even mechanisms - but then turn away at the labels and identity politics.

        It's a silly, confused little pocket of perspectives we've built up in

      • Comment removed based on user account deletion
    • Re: (Score:3, Interesting)

      by Anonymous Coward

      You mean every other country in the developed world?

      Yes, money is important, but there becomes a point where a country should decide to be more than a fiefdom, a place where a few people live off other people's labor, and the rest know nothing but "let them eat cake" replies and despair. This makes for a great sci-fi dystopia setting, but not a place where one wants to send their sons and daughters to live in. Capitalism needs some type of sanity checks, or else there will be nothing left but polluted air

      • The problem is you call any system with 'sanity checks' socialism or communism like it's a dirty word, without stopping to think about how to optimize the advantages and get the most out of them.
    • it's about 6 feet. You're guaranteed to get at least that far.
  • it sucked. Very inconsistent pay. He'd be on 9 months and off 3. Which is fine if you're in your 20s but not so much when you've got kids to raise. You're always playing catch up. I forget why but you can't get for unemployment.

    The other problem was he could never get a raise because his contract agency had established how much he was willing to work for, so even if the job paid more the contract agency just pocketed the difference. He didn't have a degree so he needed a contract agency to get past the
    • it sucked. Very inconsistent pay. He'd be on 9 months and off 3. Which is fine if you're in your 20s but not so much when you've got kids to raise. You're always playing catch up. I forget why but you can't get for unemployment.

      You do not get it because you do not pay it. Unemployment insurance is taken out of your paycheck when you are full time, but not when you contract. One of those things you have to allow for when you negotiate the rate.
      As for the gaps... They come. Every time. You know they are coming. If you do not have 3-6 months of expenses to draw from, you are asking for pain. And if you do not make enough to save that, cut your expenses or raise your rate.

      The other problem was he could never get a raise because his contract agency had established how much he was willing to work for, so even if the job paid more the contract agency just pocketed the difference. He didn't have a degree so he needed a contract agency to get past the HR filters.

      Get a new pimp! I work with several IT firms, and pic

      • One of those things you have to allow for when you negotiate the rate.

        This is why these jobs go to 20-30 year olds that can always live in their parent's basement again if they have to and don't care about EI.

    • The other problem was he could never get a raise because his contract agency had established how much he was willing to work for

      That's why you do direct, independent 1099 contracting...you incorporate yourself and subcontract yourself out. This way YOU negotiate the bill rate you want to work for. Never be a W2 employee to a contract house, that's the worst of both worlds.

      You may do it for awhile to get contacts, but that's it.

      Well, him not having a degree was a hindrance...but that's a problem he shoul

      • Most people just want to do a job and don't want to spend their lives negotiating for a better deal.
        • Most people just want to do a job and don't want to spend their lives negotiating for a better deal.

          Then, those are people with no motivation, and they will likely NEVER excel in life, make enough money to be comfortable and save for retirement, etc.

          Part of life and succeeding IS being able to stand up for yourself, and fight and win.

          This is a competition out here for all of us. Its been that way ever since there was man on this planet....its the same game, just the parameters have changed.

          Those who don

  • we need single payer health care!

  • we need crack down to the fake 1099'er where if you don't have the level of control that an true 1099'er gets then they must put you on the W2

  • Some of the Slashdot commenters seem to take the stance that this is a bad thing; a result of a workplace environment that's gotten so bad, you'd rather just risk going it on your own as a freelancer.

    I'm not so sure?

    For example, I work for a company that employs maybe 100 full-time people, but also keeps about 200 additional freelancers on a list of people they use on a contract basis for projects. Some of these folks were former employees who decided on their own to go freelance.

    Having worked with a number

  • Did my time there in Orrick's Wheeling office as a central system architect supporting their worldwide offices, as an employee, not a contractor. They are one of the law firms encouraging and enabling large corporations to do this, one of their prime business lines is corporate human resources legal work, finding legal ways to remove benefits from employees, protecting corporations in labor disputes, etc. etc. Using a law firm that is one of the drivers of the growing contracting work force for the NPR feat
  • I've had several headhunters contact me about positions with manager or director in the title, but they're rent-to-own: Start as contract, and if we like you, we might hire you in a year or so.

    I have been in this industry for over 30 years, and I'm well known in the business -- I do industry conference presentations, blogging, loudly volunteer on standards development, etc.. If you can't actually hire me, I don't want to work for you.

    Part of the problem is that the headhunters are the contract agency, so it

    • >> "Start as contract, and if we like you, we might hire you in a year or so."...If you can't actually hire me, I don't want to work for you.

      ^^^ This IS the right attitude. I do listen to the occasional recruiter, but only if it's a velvet-rope, interviews-are-formality path into a high-paying directly-employed-by-corporate-with-benefits position.

      Contracted managers are also a strange message for corporations to send THEIR employees. "We're not really sure if YOUR DEPARTMENT manager is worth keeping
    • One note: with the recent mostly-vile tax revisions, independent contractors get significant tax breaks.

      You say this like it is a bad thing?

      There a LOT of us 1099 contractor types, doing real jobs (not uber)....what's wrong with us catching a break for once?

      • by DogDude ( 805747 )
        what's wrong with us catching a break for once?

        Because it comes at the expense of people who can least afford to give you tax breaks.
  • Does it matter if Bob Cratchet is a contractor or FTE? Either way, Scrooge is looking to get rid of him as soon as he can. It's the power imbalance in the system that's the problem, not the specifics of the employment contract.

  • The rise of contract labor versus permanent employment has been an ongoing issue globally [un.org], ranging from Canada [theglobeandmail.com] to France [reuters.com] to Japan [japantoday.com] and even India [ideasforindia.in]. There are differences and nuances market by market, but a lot of it comes down to employers demanding workforce flexibility in the face of uncertainty, competition, and plenty of desperate underemployed people. France is a case where labor regulations are so tight, that contract labor is an easy loophole. Maybe the only place that this trend is beginning to rever
  • An Unfortunate Trend (Score:5, Interesting)

    by The Snazster ( 5236943 ) on Tuesday January 23, 2018 @03:56PM (#55988637)
    So far as IT goes, I can say this highlights a very unfortunate trend. There is now an expectation that highly skilled workers in a very specific discipline are available to come out of the woodwork when they are called, that they will be grateful for whatever they can get, and then will quietly slink away to try to find and compete for an opportunity to work somewhere else. We are not talking about salaried contractors hired through a contracting firm, or about the traditional contract jobs of yore, where a self-employed contractor could expect to get the big bucks and make more than enough to carry them through the gaps until their next gig, swapping the job security for financial remuneration. The expectation now is that they will take these jobs, many paying no more than what is comparable for full-time employees (and with no benefits), and like it. In general, unless the remuneration is high enough to offset many other factors (such as the uncertainties and income insecurity, lack of benefits, and the lack of employer provided training) these contract engagements should only be taken as last resort. They tend to be bad economic choices for the worker in the same way that "rent-to-own" is a bad way to furnish your home.
  • by ErichTheRed ( 39327 ) on Tuesday January 23, 2018 @04:06PM (#55988711)

    I'm one of those strange people who prefers a full time job, with a steady paycheck. I know the absolute dollar value for contracts in my field is higher than I get as an FTE, but everyone I know doing contract work is constantly hustling for a new job and never knows where their money will be coming from. I work for an IT services company so I get tons of exposure to different projects. I'm not sure I'd feel the same way if I didn't get work that varied often, but knowing you're going to be paid and can cover your expenses is a relief. I'm not a natural salesman, and really don't want to be looking for work again 2 weeks into a 3-month contract. We employ contractors in some positions where I work, and it's not exactly a ringing endorsement of the contracting lifestyle overhearing them calling headhunters, juggling bills, etc.

    People with families, houses and other fixed committments tend to favor steady income. Companies want a disposable, nomadic workforce that never puts down roots and can load their belongings into their car at a moment's notice. I'm strange in that I think it's a good idea for people to stick around, see their projects through, and get involved in the communities they live in. I know employer/employee loyalty is at an all-time low but it doesn't have to be. I think well-run companies that think long term (a minority, I know) don't really want a payroll full of mercenaries that they can't really count on. One of the best things that could happen through the tax code and accounting rules would be to encourage employment of FTEs over contractors. Right now, companies do everything they can to avoid hiring people because there's no incentive. If you made it so that retaining and paying employees is cheaper than a bunch of hired guns, lots of people would be much less stressed.

    • and you feel invincible. Things like health care, retirement and child birth & rearing feel too far off to be real. The way most companies implemented this is by doing it to the young employees or by outsourcing/offshoring. Divide and conquer between the old and young. Break up worker solidarity. That sort of thing.
  • This is a fairly common flow of events, and often goes a little like this:

    CEO doesn't like wage bill on balance sheet.
    CEO looks at workers and can't figure out what they all do.
    CEO decides to downsize.
    CEO hires a consulting company to conduct interviews and tell CEO what s/he wants to hear.
    Consulting company recommends firing workers, and CEO acts.
    Time passes.
    CEO doesn't like sales figures on balance sheet.
    CEO discovers they actually need workers to get stuff done.
    CEO hires back workers as consultants on co

  • Many free agents aren't free by choice. There is just no other way to earn money.

A committee takes root and grows, it flowers, wilts and dies, scattering the seed from which other committees will bloom. -- Parkinson

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