Its a simple question - why do contractors can get up to $100/ per hr for doing the same job year after year in the same organsiation but the perm does not even come close. Does not matter whether in OZ or lOndon
A straight forward answer with one or 2 lines will do.
A straight forward answer with one or 2 lines will do.
Again, you keep talking about the rates per hour. There's cost associated with hiring a perm staff should not be ignored. It might work up about the same (though the pay component to employee is much less), talk to a HR professional and you will get more insight.
Why pay more? Many reasons -
1) Fill up a project position which needs to be addressed quickly.
2) No headcount to hire a perm. Easier to justify hiring a contractor and quicker to get approval.
3) Specialised skillset can't get from existing pool.
4) Someone to be 'blamed', contractor is a good target if things do not work up. No string attached, hire and fire easily ( I have seen this happened b4 by the way)
Bottomline, no hiring managers would want to keep a expensive contractor for long, sooner or later the senior executive will go after him to reduce cost. (unless they have absolutely no choice). During downtime, contractors are told to lower their rates or keep the rates the same. Perm still get some increment and bonus.
Is it better to be a contractor or perm - up to you to judge?
If its in london, gaps between contractors and perms are so much more, then is worth to be a contractor. in OZ, contractors and perm gap are not a lot, minus gov job which pays by rank.