Companies trying to get contractors on low permie wages or fixed term salary

[contractor79]

Have you noticed the latest tricks that companies do to try and secure contractor calibre people for a fraction of the cost?

Let's say you can contract your services on £400/day.

Instead of offering you a £400/day contract for 12 months, they offer you a 'fixed term contract' where they would pay you say £40k salary plus allow you to enjoy their company benefits for 12 months.

Do the maths- this is much cheaper for them. Instead of paying you potentially £400*5*40 = £80k they pay you salary £40k plus 'benefits'. Benefits at these companies have been seriously downgraded over the years. You're lucky to get an use of an outdated gym now. Forget free parking space, cheap lunch, free cups of tea etc.

Obvious downsides is that you get paid less plus you are taxed more on PAYE and can't offset expenses.

Surely self-respecting contractors should avoid these offers.

Furthemore, some companies are now offering 'permanent' jobs paying less say £30-35k... but who's to say they will not make you redundant in 2-3 years? Then you would have worked for 70-90k salary over that 2-3 year period when you could have raked in £250k+ contracting. Not forgetting paying much less tax.

Surely self-respecting contractors should refuse these bogus offers and demand adequate daily rate. Stay strong contractors, don't give in to bogus 'stable' offers. They're a con.

[eliquant]

£30-35k in IT in the UK per year isn't worth it, its ok if you are single and inexperienced and have no family but otherwise you may aswell go abroad and have a higher standard of living doing something else more intersting.

[scooterscot]

I've noticed it happening more in the UK than the rest of Europe. Germany's labour market seems a lot stronger than the UK's at the present time.

Same jobs advertised year in year out at low rates, 27 - 30 K or 25 p/h the advert reads. Meanwhile projects are getting the chop left right and centre.

[MarillionFan]

I don't think there is anything new here. There have always been misleading adverts or contracts. You just learn to avoid them

[cojak]

It's been like this for the whole of 2010.

[ChimpMaster]

Is it 2008 again?

[Sysman]

Is it 2008 again?

Is it 1997 again? IBM tried this trick on me and seemed to think I'd be attracted by a company car.

[AtW]

Furthemore, some companies are now offering 'permanent' jobs paying less say £30-35k... but who's to say they will not make you redundant in 2-3 years? Then you would have worked for 70-90k salary over that 2-3 year period when you could have raked in £250k+ contracting. Not forgetting paying much less tax.

Well, if you think you can just "rake in" that amount, then why won't you just do it and spend your time counting the money rather than whining on here?

There is no trick in offering fixed term contract - if you don't like the terms then don't take it, simples.

Even better - if you are that ****ing great at generating value then maybe you should create your own company and do that whilst providing employment or contracting opportunities to others.



P.S. Two new IT staff starts this month and one more next, not counting "high calibre" contractors ...

[Zippy]

Yay AtW

[DimPrawn]

Well, if you think you can just "rake in" that amount, then why won't you just do it and spend your time counting the money rather than whining on here?

There is no trick in offering fixed term contract - if you don't like the terms then don't take it, simples.

Even better - if you are that ****ing great at generating value then maybe you should create your own company and do that whilst providing employment or contracting opportunities to others.



P.S. Two new IT staff starts this month and one more next, not counting "high calibre" contractors ...

Happy happy happy happy talk.......

PS I was getting £50K pa in IT in early 90's when I was permie.

Crikes. £30K pa. That's new grad in media studies in NE England salary surely?