Direct hire v.s. contract (employment, profit, unemployed, temporary)
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This is a direct result of Obama's anti-business agenda. Hiring a permanent full-time employee is a risky move when you don't know what the federal government is going to do next, and it's expensive when you have to provide benefits (used to be customary, now it's mandatory under ObamaCare).
So, instead of more people getting health insurance, the result is FEWER people getting health insurance because of the health insurance mandates -- gee thanks, Democrats
I was wondering how long it would take before someone used this thread as an excuse to bash Obama. Companies hire based on market demand for their products and whether they can meet that demand, not on what the federal government does. Second, the idea of health insurance mandates is a Republican idea. In the 1970s, Nixon favored a mandate that employers provide insurance. In the early 90s, John McCain called for a mandate as an alternative to Hillary Clinton's plan. Around the same time, The Heritage Foundation which is a conservative think tank also supported individual mandates. In 2006, Mitt Romney signed into law such a requirement when he was governor of Massachusetts. In 2008, Tommy Thomson embraced the idea during his campaign for the Republican nomination. Isn't it funny how Republicans suddenly disavow one of their own ideas when a Democratic president embraces it? What's also funny is how you characterize Obama as being anti-business. So a President who bailed out the banks, the auto industry, created a mandate that gives insurance companies even more customers, and is getting ready to sign a financial reform bill that continues to let banks remain too big to fail and gamble with consumer deposits is somehow anti-business. By the way, employers were favoring contract workers long before Obama was elected. If you want to start an Obama-bashing thread, go to the Politics forum.
Direct hire means you either work for yourself or other who contracts for the work. A example is that the majority of government work is under contract by far.It actaully is one of the reson for so much small business growth in the economy since the 70's recession.It means more competitio at all levels than hired empoyees . All the people at the top work under contract and most is preformance based.
If contracting meant earning a higher salary so that you could buy your own health/retirement benefits, then I'm all for it. Unfortunately, I foresee employers abusing that, because it is human nature to get the most for the least.
The company I work for started me out as a contractor. Guess what. My pay as a contractor was no different than my pay as full-time W2 employee. My point is, if this becomes the norm (contractor vs. W2), I believe that employers will find ways to exploit the system. It's just in their nature.
Ah yes. This has become the rule, the Golden Rule. He who has the gold ... makes the rules. The rates for contractors in Houston in the Engineering field have DROPPED from 65-70 to 35-50 while the direct rates are still up there at 65-70. The contractors who were earning 65-70 have all been replaced by 35-50 contractors. They not only send American jobs overseas, but then turn right around and rape us again.
If contracting meant earning a higher salary so that you could buy your own health/retirement benefits, then I'm all for it. Unfortunately, I foresee employers abusing that, because it is human nature to get the most for the least.
The company I work for started me out as a contractor. Guess what. My pay as a contractor was no different than my pay as full-time W2 employee. My point is, if this becomes the norm (contractor vs. W2), I believe that employers will find ways to exploit the system. It's just in their nature.
That is exactly what is happening in science. Except it isn't just the companies abusing the system; it's the staffing agencies too. They end up taking about half your income so that in many cases not only are you getting no benefits you are earning less than an employee. Companies like having a middle man in between them and the "contractor" as If i challenge my status the IRS rules I am an employee of the staffing agency. Also the company can put me down as an expense rather than a labor cost/head count.
Frankly, I think this is going to wind up killing science as wages decline due to being forced to have a middle-man taking 1/2 your pay check most are going to opt to quit the field like I am doing. My current company just had 3 long term (one 3 years) contractors quit and it is disrupting operations. However, they are just too slimy and retarded to do anything about it.
To an employer, what's the difference between direct hire and contract? I don't quite understand why so many companies are only hiring under contract.
Contract employees are reported as an "expense" and so the cost is tax deductible. Also, they don't have to play your unemployment insurance when they let you go.
I started out as a temp and was hired on. I think they also do it to prolong the perks such as vacation time and such. What's also interesting where I work is let's say your a temp for 8 months then hired on, when your hired they don't take in account that you were there for 8 months so you would have to work a full year before you are eligible for vacation time.
But mainly I think it's to see if you work out. One slip up or any form of resistance and your gone.
I started out as a temp and was hired on. I think they also do it to prolong the perks such as vacation time and such. What's also interesting where I work is let's say your a temp for 8 months then hired on, when your hired they don't take in account that you were there for 8 months so you would have to work a full year before you are eligible for vacation time.
But mainly I think it's to see if you work out. One slip up or any form of resistance and your gone.
Some companies do this but other companies, particularly large corps such as Pepsi, Kraft, Apple, Microsoft, Abbott Labs just keep people for years as temps until they get an FTE and leave.
Some companies do this but other companies, particularly large corps such as Pepsi, Kraft, Apple, Microsoft, Abbott Labs just keep people for years as temps until they get an FTE and leave.
Wow never realized or thought of that . I was always under the impression ( I could be wrong ) that if a temp is hired on , the temp agency gets a bonus or whatnot for having one of their people get the job. I mean they have to get something I am assuming because when their workers get hired they lose a worker and money that worker made them..
Wow never realized or thought of that . I was always under the impression ( I could be wrong ) that if a temp is hired on , the temp agency gets a bonus or whatnot for having one of their people get the job. I mean they have to get something I am assuming because when their workers get hired they lose a worker and money that worker made them..
The temp agency usually does get a finders fee if you are hired on. But they also make a good chunk of change skimming off your paycheck as long as you are a temp. Some companies negotiate a no or low finders fee after working through them for a period of time say a year or two. Otherwise both the company and agency are perfectly happy to have you work as a temp forever. That is the nightmare myself and many other scientists face and why the field is dying.
There are laws regarding whether or not someone can be a 1099 employee hired directly by the company or not. Companies cannot just hire persons that are in fact de-facto employees as a 1099 laborer (independent contractor). That is illegal and companies can get fined over it. If an employee is hired by a temp agency for that company it is completely legal.
Whether or not it makes sense depends on each individual circumstance.
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