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this post was submitted on 22 Feb 2024
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I think it's also very acceptable to have full time contractors on the payroll with no end date for the same reason.
why?
Contractors can be paid out of project budgets, they don't need benefits and other perks aside from cash and they can be hired and terminated quickly with no severance
And afterwards they discover the payroll is much lower while overall costs are much higher compared to the fixed employee era, and the same people they fired are back but now on s freelance base.
When the company's CEO cares more about cutting employees' bonuses than saving money and reporting more cost-saving measures to the board.
And that goes back to the engineer's original ask to show him what companies have employee loyalty.
Replacing full time employees who at least have a slight stake in the company with easily replaceable contractors there to complete a project doesn't put the best foot forward in the loyalty regard.
I make no judgements on the intelligence of these decisions, I was answering why companies do it.
Right on. I did ask why after all and even tho I wanted to know something specific from the post above mine I was generic with my question.
When you leave the car lot, you need to use regular words like 'request' or 'question'.
My work let all the contractors know that they can comvert or their contracts will not be renewed again. I know at least one guy that would be taking a 40k pay cut.
I was just hired on along with another guy. We found out that one of our team members who has been with the company for 10 years is making less than the new hires.
Another oddity of the situation: I worked with her in the same department 10 years ago as new hires. I left the company to double my salary and 10 years later came back and was hired at the same salary I had left for (took a pay cut for a better life).
I get so pissed off on her behalf. 8 years of mysoginistic managers screwing her over for raises, and now that she finally has a good manager, his hands are tied to give her a decebt, an deserved, raise or even salary parity with new-hires.
My old job did this with me. Let me go for "personnel reasons" (playing well with others, specifically an older cranky guy), and hired me back as a contractor now making about 6x what I made while there. Old guy left, and a management spot opened up about the same time, they lowballed the shit out of their offer, to which I laughed and said I'm happy where I'm at.
Classify it as non-recurring professional services and it's an EBITDA addback.