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Silicon Valley's Dirty Secret: Using a Shadow Workforce of Contract Employees To Drive Profits (cnbc.com)

An anonymous reader shares a report: As the gig economy grows, the ratio of contract workers to regular employees in corporate America is shifting. Google, Facebook, Amazon, Uber and other Silicon Valley tech titans now employ thousands of contract workers to do a host of functions -- anything from sales and writing code to managing teams and testing products. This year at Google, contract workers outnumbered direct employees for the first time in the company's 20-year history. It's not only in Silicon Valley. The trend is on the rise as public companies look for ways to trim HR costs or hire in-demand skills in a tight labor market. The U.S. jobless rate dropped to 3.7 percent in September, the lowest since 1969, down from 3.9 percent in August, according to the Bureau of Labor Statistics. Some 57.3 million Americans, or 36 percent of the workforce, are now freelancing, according to a 2017 report by Upwork. In San Mateo and Santa Clara counties alone, there are an estimated 39,000 workers who are contracted to tech companies, according to one estimate by University of California Santa Cruz researchers. Spokespersons at Facebook and Alphabet declined to disclose the number of contract workers they employ. A spokesperson at Alphabet cited two main reasons for hiring contract or temporary workers. One reason is when the company doesn't have or want to build out expertise in a particular area such as doctors, food service, customer support or shuttle bus drivers. Another reason is a need for temporary workers when there is a sudden spike in workload or to cover for an employee who is on leave.

177 comments

  1. Reconcile... by xxxJonBoyxxx · · Score: 4, Interesting

    From TFA:

    >> Contract workers tend to fill more "grind it out type roles" that need manpower or less senior roles

    >> workers with jobs in higher wages are more likely to have their services contracted out than jobs associated with lower wages. Such "alternative" work arrangements are becoming more common among older and more educated workers.

    1. Re:Reconcile... by Anonymous Coward · · Score: 0

      Shut up you moron.

    2. Re:Reconcile... by Marxist+Hacker+42 · · Score: 2

      In an effort of course to break the trust between labor and management and save money on retirement programs.

      --
      SJW: a person who perceives an injustice, and while correcting it, commits a greater injustice.
    3. Re:Reconcile... by Anonymous Coward · · Score: 0

      The second one used "jobs" in the sense of "fields", not "positions".

    4. Re:Reconcile... by Anonymous Coward · · Score: 0

      The problem is that many employers want "flexibility" from their employees. What that means is that at one month they are desperate for an OpenGL ES developer (with C++ and linear algebra knowledge) to work on a new feature. The person they find to do this, also has device driver experience from decades ago. Next thing they need someone to patch some hardware interface. It's impossible to find anyone on the marketplace with that experience, so they just grab and shove their OpenGL ES developer straight onto that work and hire a new contractor to do the OpenGL ES work. Other times, it might be that the directors of a startup decide they need to get someone to handle management of some aspect of the company. The simplest solution is to grab a senior engineer and reassign them.

      Working as a contractor is the only way to stop this from happening in the first place and secure the work long term.

  2. And... by cre1mer · · Score: 0

    If you're a contract worker, you're not going to get stock options.

    1. Re:And... by Anonymous Coward · · Score: 0

      Or job security, or retirement. If you can't get a job after your contract expires, you will be sleeping on the street :(

    2. Re:And... by Anonymous Coward · · Score: 0

      Creimer's survival strategy is to aim as low as possible. The same strategy adopted by mold and mushrooms.

    3. Re:And... by Anonymous Coward · · Score: 0

      Since Obamacare got passed, contracting agencies offered full benefit packages, including healthcare and 401k plans, to stay competitive in the employment market. If you're professional contractor, you're already prepared for the worse.

    4. Re:And... by Anonymous Coward · · Score: 0

      If you're professional contractor
      Some contractors have almost no retirement savings :( When they lose their job they will end up sleeping on the street :(...

    5. Re:And... by Anonymous Coward · · Score: 0

      " contracting agencies offered full benefit packages,"

      Offered, past tense? But they don't anymore?

      " If you're professional contractor"

      You often skip the indefinite article, almost like a native Russian speaker.

      "you're already prepared for the worse."

      The worse what, Chris?

  3. Um... it's not just Silicone Valley by rsilvergun · · Score: 1

    _everybody_ does this. It's a quick and easy way to get H1-B workers for one thing. It lowers tech wages too since you don't have long term employment. Plus it dodges taxes.

    Thing is, what are we (/. techies) gonna do about it? Nobody wants to vote for strong worker protections. It pisses us off when somebody abuses them. So we'd rather give them up for ourselves than risk somebody else getting them.

    If you want this to change you're going to need help from the government. By ourselves we're too weak. We don't have any solidarity for one thing. And there's so much cheap, overseas labor we can't hope to compete. It's Ok to want nice things, and to take steps to get those things. And it's OK if you can't do it on your own.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
    1. Re:Um... it's not just Silicone Valley by Anonymous Coward · · Score: 0

      You support the DNC. You support unlimited illegal immigration. You support unlimited H-1B visa.
      Why are you complaining about polices from people you vote for? They don't even pretend to care about middle-class, their platform is to screw the middle class in order to get more dependent on the government.

      In fact this guy, rsilvergun, just yesterday was supporting violence against those running on stopping this kind of thing. He thinks attacking, shooting, punching, etc. politicians running against policies hurting middle class are not only good, but to be encouraged.

      You must be a complete retard to be complaining about problems created by the DNC that you support when you also support violent attacks against those attempting to stop these policies. Perhaps if you would stop voting things might get better for you.

    2. Re:Um... it's not just Silicone Valley by ShanghaiBill · · Score: 2, Insightful

      It's a quick and easy way to get H1-B workers for one thing.

      The US issues a fixed number of H1-B visas each year. Whether those people work as direct employees or employees of a contractor makes no difference. The number is the same.

      It lowers tech wages too

      No it doesn't. It increases wages. It lowers non-wage benefits.

      you don't have long term employment.

      Many of the people discussed in TFA are regular W2 employees working for a contracting company, not individual contractors.

      Plus it dodges taxes.

      No it doesn't. The taxes net out the same. It just shifts who pays them.

      Nobody wants to vote for strong worker protections.

      No, not stronger, nor better. Just different. In many ways, 1099 workers get a better deal than W2 workers.

      If you want this to change you're going to need help from the government.

      No thanks.

    3. Re:Um... it's not just Silicone Valley by LynnwoodRooster · · Score: 2

      Lower wages? I guess pulling down $200+/hour lowers the wages of the rest of the team?

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    4. Re:Um... it's not just Silicone Valley by Aighearach · · Score: 1

      _everybody_ does this.

      For the past 30+ years, all the local manufacturing jobs use "temp agencies" for new workers. They do get hired on as real employees after 90 days. But it is generally not possible in many trades to participate in the economy as an employee without first being a contractor. And you might have to stand out as a great and loyal worker while merely a contractor to even get considered as an employee.

    5. Re:Um... it's not just Silicone Valley by fermion · · Score: 1
      And it is nothing new. In 2000 MS paid like $100 million to workers who sued the in around 1990 for miscatogorization of thier job. MS hired temp workers and contract workers to do what normally would be full benefit work. This is different from amazonn subcontracting to protect itself from liability. We will see if it is the same as Uber drivers.

      Contract work has specific requirements and can be useful and lucrative. I have made good money in contract work. However many young managers do not know the law, or think the US provides a third world labor force. This why bill gates always sounded like such an idiot when he threaten to move to Canada. The US does let companies play fast and loose, but Canada is definitely first world Kazan or with first world benefits.

      --
      "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
    6. Re:Um... it's not just Silicone Valley by Waffle+Iron · · Score: 4, Interesting

      LOL. Do you really think that Google contracts out more than half of its workforce so that it can pay them anywhere near $200+/hour?

    7. Re:Um... it's not just Silicone Valley by LynnwoodRooster · · Score: 1

      I dunno - maybe they do? When I was consulting 30+ hours a week at Microsoft in the mid 2000s I was billing $175/hour. So I'd assume that well over $250/hour would now be fine, given inflation and the tighter labor market. Or maybe they are mainly contracting out "menial" jobs like CSR, janitorial, etc.

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    8. Re:Um... it's not just Silicone Valley by Waffle+Iron · · Score: 1

      Right. I'm sure that more than half of Google's workforce is pulling down $400K per year.

      The place must be like Lake Wobegon, where all the women are strong, all the men are good-looking, and all the workers are in the top 1%.

      But back to reality. Here's a hint for you, which you would probably already know if your story were true: Most contract employees work for middlemen and make jack shit.

    9. Re:Um... it's not just Silicone Valley by Anonymous Coward · · Score: 0

      ("Silicone Valley"??? Are you sure you don't mean 'silicon'? Silicone is more likely found on Broadway in San Francisco.)

      It's everywhere. So-called contract employees, and more commonly, job shop or temp agency employees are used in many industries, even in agriculture--Field workers are no longer hired by farmers, they are temp agency employees. This started just before Obamacare went into effect on 2014 Jan 1. The reason? Obamacare increased employee costs. The new expenses, plus the indirect costs resulting from Obamacare's mandates and the loss of tax credits made hiring a lot of full time employees too expensive. Temp agencies can afford to hire people because not everyone will be allowed to work full time and temp agencies get substantial tax credits for hiring people.

  4. They use us like a toilet then throw us away by Anonymous Coward · · Score: 2, Insightful

    Ever want to know what it feels like to be a $20 whore? Get involved in one of these 'contracting' deals. They have no investment in you, you're paid what you're paid, and if you're stupid enough to let them alter the deal so you hang around longer than 6 or 12 months, you'll NEVER get paid another penny more, no matter how much the economy changes in the meantime, and if you complain too much, all it takes is a phone call and you're FIRED, with no consequences for them, they'll get another $20 whore in your place, to be used like a toilet. You wonder what 'capitalism gone bad' looks like? This is part of it. Hire people outright? Give them a reason to hang around? LOL that's so Last Thursday! The NEW HOTNESS is just treating people like the robots everyone keeps talking about taking everyones' jobs. We've truly become a degenerate society when shit like this is going on.

    1. Re:They use us like a toilet then throw us away by Anonymous Coward · · Score: 1

      California is an at will state. Full time employees can be fired just as easily as a contractor. If you want a raise, change jobs.

    2. Re:They use us like a toilet then throw us away by ShanghaiBill · · Score: 1

      Full time employees can be fired just as easily as a contractor.

      Legally, employees can be fired for almost any reason, or for no reason, at any time. But psychologically it is difficult to sit down with a worker who has a family and a mortgage, and tell them to their face that they are fired. So managers tend to avoid or delay firing people, even when it is against the best interest of the business.

      It is much easier to just let a contract expire.

      If you want a raise, change jobs.

      Indeed. A typical annual raise is about 5%. In tech, the median salary boost from changing jobs is about 20%. To maximize income, you should plan to change employers every 3 to 5 years.

    3. Re:They use us like a toilet then throw us away by Bobartig · · Score: 1

      While true, companies are still usually composed of humans making decisions. Companies are less likely to fire permanent position individuals because they've typically been through more vetting, training and personal development, tend to carry more responsibilities, and the company has invested more in them. This is not rational behavior, mind you, just another form of sunk cost fallacy, but it still plays a part. Companies tend to work much harder to 'make it work' with perm employees than the contractors that fill the gaps with less permanent ties.

      --
      This is where I get my recommended daily allowance of "Foot in Mouth."
    4. Re:They use us like a toilet then throw us away by LynnwoodRooster · · Score: 1

      Funny, I make quite a bit more than $20/hour (between 10 and 15X that rate). I guess maybe I'm a high-priced escort, not a whore? I also get a pick of contracts, decide when I want to work, get to do quite a bit of work from home, get paid to travel to my client (including hotel, Lyft, air, food), and have zero issues with corporate politics. And when I tire of a place, I just leave - and take a different contract, to learn new skills and further increase my bill rate.

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    5. Re:They use us like a toilet then throw us away by Anonymous Coward · · Score: 0

      Companies are less likely to fire permanent position individuals because they've typically been through more vetting, training and personal development, tend to carry more responsibilities, and the company has invested more in them.

      I had contract positions where I was doing the same job as an "permanent" employee and making 40% more money.

    6. Re:They use us like a toilet then throw us away by LynnwoodRooster · · Score: 1

      Somebody's jealous of the well-paid consultant working around the US and the world!

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    7. Re:They use us like a toilet then throw us away by Anonymous Coward · · Score: 0

      More like chump, maybe even chimp, spending his time in hotels and second rate ride share cars.

    8. Re:They use us like a toilet then throw us away by Aighearach · · Score: 1

      "My rate is increasing ______ starting on the __th day of ______ month."

      Done.

      What you need is to do is take a class on negotiation at the local community college. As a contractor, you're in charge. If you're not, you're doing it wrong.

    9. Re:They use us like a toilet then throw us away by Aighearach · · Score: 1

      Full time employees can be fired just as easily as a contractor.

      Legally, employees can be fired for almost any reason, or for no reason, at any time. But psychologically it is difficult to sit down with a worker who has a family and a mortgage, and tell them to their face that they are fired. So managers tend to

      ... hire HR staff to do that part. Once they decide you're out the door, telling HR should mean the person making the decision doesn't have to deal with the full psychological stresses. And the HR person isn't the one making the decision, so they shouldn't feel the same stress; it is already decided and out of their hands. They're just doing the paperwork.

    10. Re:They use us like a toilet then throw us away by PrimaryConsult · · Score: 1

      If the client likes you they can have the contracting company over the barrel. It can be as simple as "well, we really like person X. The previous people you sent were borderline useless. If we can't have him, maybe we don't need this position at all". Halving their cut to increase person X's pay makes more business sense than calling client's bluff...

    11. Re:They use us like a toilet then throw us away by PrimaryConsult · · Score: 1

      Presumably the rate is in the... well, contract. A well run business will have a plan to counter such tactics at contract renewal time.

      Of course not many are that prepared, and it's entirely possible they were either foolish enough to allow the rate to be variable, or (more likely) are royally screwed if they don't renew your contract, and yes at that point you have them by the balls.

    12. Re:They use us like a toilet then throw us away by Anonymous Coward · · Score: 0

      While true, companies are still usually composed of humans making decisions.

      True.

      Companies are less likely to fire permanent position individuals because they've typically been through more vetting, training and personal development, tend to carry more responsibilities, and the company has invested more in them. This is not rational behavior, mind you, just another form of sunk cost fallacy, but it still plays a part. Companies tend to work much harder to 'make it work' with perm employees than the contractors that fill the gaps with less permanent ties.

      Hey, the 1980's called, they want their SOP back.

      That crap hasn't been true in years. Permanent employees are just as fungible as anyone else because of so called "Right to work" laws. In reality, they can fire you for any or no reason and there is nothing you can do about it. Even if it's a legally prohibited reason, such as race discrimination, all they have to do is say "You're fired." and that's it. The onus is on you to prove otherwise and even then, even if you are successful in suing them, they can turn around the next day and fire you all over again. Nevermind the lack of wisdom in trying to stay with an employer that wants you gone....

      The employers have screwed over the labor. That's why wages have been stagnant for decades despite massive gains in productivity in the so-called richest country in the world. That's the reason why when the government says "you have to provide health coverage to your full time employees", all of the employees suddenly weren't considered "full-time" anymore. That's the reason why no matter how good you are at your job, you're always looking for the next replacement job because you know they'll fire you the second the whim comes to them. That's also the reason why quality has dropped off like a rock, because no-one wants to put in more effort knowing they will never see a return on it. (All those code-monkeys out there: Their shitty "who-gives-a-rats-ass-as-long-as-it-makes-deadline" coding is what causes your CVE list to grow exponentially. Not that anyone else gives a shit either.)

      The US is full of shitty employers, but given your ridiculous five digit UID, I guess you've been around long enough to be able to look at the situation through rose-colored glasses. Unfortunately for the rest of us, we're not so lucky to have known a time like that.

    13. Re:They use us like a toilet then throw us away by Aighearach · · Score: 1

      Well, if they aren't smart enough to make the increase happen at contract renewal time, they should really think about getting a "real job." lol

  5. Not a secret by Anonymous Coward · · Score: 0

    just sayin’.

  6. Does not dodge taxes by SuperKendall · · Score: 5, Insightful

    It lowers tech wages too since you don't have long term employment. Plus it dodges taxes.

    Hi, consultant here. I don't see it lowering wages, or dodging taxes.

    That's because if you want short term help, a company will mostly be paying HIGHER wages than they would real employees. And those employees (or a consulting firm) will be paying all those taxes you think are somehow being "dodged". Which is why the wages are higher...

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
    1. Re:Does not dodge taxes by Anonymous Coward · · Score: 0

      Also these idea's ignore the MBA schools teach that you should contract out parts of your business as a rule of thumb. I mean this isn't just large tech companies being greedy per se. Some contract companies employ >100,000 employee's and have been around for a long time.

    2. Re: Does not dodge taxes by Anonymous Coward · · Score: 1

      i do ninja work (contracted to fix one thing anderen go away) and see this all the time, employees with minimum wage are burned without compensation, work hours stealed and pinned down with micromanagement, staffing is the worst.

    3. Re:Does not dodge taxes by Anonymous Coward · · Score: 0

      It depends on the contractor.

      A typical highly skilled I9 self employed contractor, this is true. (Or even one running through a contracting firm that specializes in engineers.) You're not paid benefits, and you have to pay both sides of the employment tax, but the difference wage more than makes up for both points.

      W2 contractors and temps, not so much. These contractors lower wages, benefits, and everything else for low and even mid tier jobs. They're the "work for 2 years as a contractor, and if you're really lucky, we'll hire you on as an employee." So, if you're lucky, at the start of your third year working for a company you start to accrue sick time, vacation time, retirement plan, stock options, etc.

      Some of these are for low skilled jobs, but not all of them. The number of W2 contractors for "non-core" work seems to be increasing every year. This puts a further squeeze on anybody who's not high up in engineering or management.

    4. Re:Does not dodge taxes by fluffernutter · · Score: 4, Interesting

      I used to contract. At first I thought I was getting paid more, but then I found out I needed to pay an accountant $2K a year and health coverage for my family was easily $600/month. And I'm in Canada so that is basically for dental coverage. Add to that the stress of always having to worry about 'the next gig' and contracting definitely wasn't worth it for me.

      --
      Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
    5. Re:Does not dodge taxes by Marxist+Hacker+42 · · Score: 1

      I got nearly 30% raise to go permanent. After 15 years of contracting.
      They're lying to you.

      --
      SJW: a person who perceives an injustice, and while correcting it, commits a greater injustice.
    6. Re:Does not dodge taxes by Anonymous Coward · · Score: 0

      Not true. All of the contract work here on my part of the east coast pays less than permanent work. Forget being paid enough to survive a month between six-month contract after six-month contract.

    7. Re:Does not dodge taxes by sarren1901 · · Score: 1

      I'm sure I am not understanding something correctly, but I was under the impression healthcare in Canada was free. How is it you spend $600 a month on healthcare? I could see if you had premiums, were actively going to physical therapy multiple times a week and had numerous prescriptions you needed to fill, but isn't that part of free healthcare that Canada provides?

      I only ask because while I only have my wife and I to cover, she does go to PT bi-weekly but we don't spend half as much on healthcare. We don't have any needed drugs though and I have pretty good insurance through my work, but we live in USA. Genuinely asking.

    8. Re:Does not dodge taxes by fluffernutter · · Score: 1

      Dental is not covered in Canada so you need coverage for that. Also, health coverage will do things like top you up to a guaranteed private room in the hospital, coverage for financial loss while ill (beyond employment insurance), things like that. But the biggest cost is dental coverage for sure.

      --
      Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
    9. Re:Does not dodge taxes by Anonymous Coward · · Score: 0

      I live in Canada, do contract and don't have a health care plan. Unless you family has some health issues, there is no way to spend $600 on health and dental.

      You pay for medicines and dental in Canada and depending where you live and the age, you may not pay for medicines (In Ontario, under 25 years do not pay for medicine from the government list- 4K meds)

    10. Re:Does not dodge taxes by PrimaryConsult · · Score: 1

      $600/month for dental is insane. Because it's usually negotiated separately here in the states, the uninsured cost comes out to $600... in a year. And that's if some non-surgical work needs doing (fillings, etc). So unless you have a family of 12 you might be overpaying a smidge there...

    11. Re:Does not dodge taxes by fluffernutter · · Score: 1

      three sets of braces, three root canals, an implant in the future.. it's paying off for me.

      --
      Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
    12. Re:Does not dodge taxes by fluffernutter · · Score: 1

      Oh and a porcelain crown. Those are ridiculously expensive.

      --
      Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
    13. Re:Does not dodge taxes by fluffernutter · · Score: 1

      The trick is knowing whether your family will have health issues. As I found out, the day you get diagnosed with cancer is too late to consider applying for coverage.

      --
      Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
    14. Re:Does not dodge taxes by Anonymous Coward · · Score: 0

      But now, you are the king, with your porcelain crown, sitting on the porcelain throne.

    15. Re:Does not dodge taxes by PrimaryConsult · · Score: 1

      Ah, at least you're getting your money's worth. I've gotten a lot of work done (wisdom teeth removal, caps, fillings) now that it's included with my current job (no additional cost or co-pays). The 5 years of deferred maintenance before then took a toll on the 'ol chompers, though (I couldn't even afford the low out of pocket).

  7. In my experience, it's a management problem by jeff4747 · · Score: 5, Insightful

    The vast majority of the times I've seen a company use contract workers, it's a management problem.

    Manger has work that needs to be done, and all existing employees are busy. This work is not some sort of short-term bump in the road, there will be work for years.

    Manager asks for another employee.

    Executives and/or HR say "No", because it would violate some arbitrary rule on number of employees or number of direct reports or something similar.

    However, the manager is allowed to hire a contractor at 150% the cost of an employee, because that doesn't violate the arbitrary rule. Contractor ends up as de-facto employee, and everyone desperately hopes that doesn't bite them in the ass.

    1. Re:In my experience, it's a management problem by Kjella · · Score: 1

      The thing is it solves everyone's problem in the short run, on the false premise that during this time with extra resources you'll become more efficient so by the end of the contract they'll be redundant. The manager gets staff to fix the immediate problem. Manager+1...n didn't sign off on a permanent expansion. Kick the can down the road and hopefully it's not your problem next time.

      --
      Live today, because you never know what tomorrow brings
    2. Re:In my experience, it's a management problem by Anonymous Coward · · Score: 0

      Intel, Nike etc.. List goes on that these companies abuse the CW system. CW's take jobs because companies dont always hire full time employees that get all the benefits. For example, the job at company B.. I.E Intel is meant to be a temp job until its finished.. thus the reason for a CW. The fact is that the job never ends.. Its a job that should be for a full time employee but the company does not hire someone full time, but makes them a CW.. gives them less pay, they dont get the benefits, the bonus, and all of the other perks of being a full time employee. There is a complete ABUSE of the CW system in this country. The diversity quota is a joke. I dont care what color of skin you have, or your sex. If you cant do the job, you should not be hired. Lots are hired because of their skin color or sex and cant do the job.

    3. Re:In my experience, it's a management problem by Aighearach · · Score: 0

      Manager asks for another employee.

      Executives and/or HR say "No", because it would violate some arbitrary rule on number of employees or number of direct reports or something similar.

      However, the manager is allowed to hire a contractor at 150% the cost of an employee, because that doesn't violate the arbitrary rule.

      The rule isn't arbitrary. The employees only have to follow directions, and you need somebody giving those directions. A contractor is, or should be, or at least might be, an independent expert who doesn't need a lot of directions. They only need documentation of the business and technical needs of the project. That's why paying them more than an employee is allowed, even when the manager already is giving directions to the max number of people they're considered able to supervise.

      As a contractor, I'm responsible for the success of the project. I'm expected to operate as a whole department, including leadership. In a tight labor market, that can easily save the company money compared to trying to get enough managers for more employees. When you get bad managers, not only might your project fail, but you might even end up on the news and have six months of bad twitter hashtags next to your brand.

    4. Re:In my experience, it's a management problem by jeff4747 · · Score: 1

      A contractor is, or should be, or at least might be, an independent expert who doesn't need a lot of directions

      And here's the point where you didn't read the last sentence in my post, making everything you're talking about here moot.

    5. Re:In my experience, it's a management problem by Aighearach · · Score: 1

      A contractor is, or should be, or at least might be, an independent expert who doesn't need a lot of directions

      And here's the point where you didn't read the last sentence in my post, making everything you're talking about here moot.

      Nope. That's how weak your claim was; it is refuted merely by my opinion! Whoopsie. lol You choose your words, don't bother trying to choose mine. That's a task for some sort of pushy Sisyphus. I'm not sure what you'd get out of it, but I know you'd be systemically prevented from ever having success.

      In the end though, you probably just didn't comprehend what I said, so you didn't comprehend that rather than mooting it, it was a basic premise repeated in my words. Notice that I said, "That's why paying them more than an employee is allowed..."

      Stop being aliterate. Knowing how to read words is not enough to be fully literate; you have to follow that knowledge with the actual act of reading the words to be literate. If you know how but still can't do it, then you're still functionally non-literate, ie, aliterate.

  8. Re:Before you commies get you panties in a bunch by jeff4747 · · Score: 4, Interesting

    Perhaps you could explain why it's a good thing first.

    And if you use the words "self-employed", you are disqualified. >90% of these contractors work for staffing firms.

  9. Re:Before you commies get you panties in a bunch by Anonymous Coward · · Score: 0

    Mass layoffs have timing/pay requirements. Not renewing 10,000 people via contracts bypass these requirements entirely. Having large groups of people in an area all lose their jobs at the same time is horrible on the area, which is why those requirements were instituted. Just brings me to the conclusion that laws aren't meant to be followed, they are meant to be ignored or gotten around.

  10. erm... by gDLL · · Score: 1

    guilty if not proven innocent much ?

  11. They aren't the root of the problem. by bistromath007 · · Score: 5, Interesting

    I am one of these contract workers. I like it fine. I'm getting a better rate per hour than I ever did in any other job, I work from home, and I have complete control over when and how much I work. I suspect my client is willing to put up with this precisely because I don't cost them anything when I'm not working.

    However, I like it fine because I'm disabled. I get government money to help me along when my paycheck isn't enough, and I get (currently) zero copay healthcare from the state I live in.

    People worry quite alot that small businesses are dying, because many kinds of them are. The "mom and pop" store can't do shit against Amazon. The thing is, Silicon Valley startups are also small businesses, and the fact they sometimes manage to sucker in venture capitalists sometimes doesn't make them not small businesses. They're 3-5 dudes who know how to code who have an idea about how use code to make something easier or more marketable. Because they're paying Silicon Valley rent, they can't afford real employees until such time as they do happen to land that VC money. Even then, that money isn't theirs to fuck around with, and I'm sure the field is littered with startups that were too good to too many people.

    The upshot of this is that the kind and amount of work that is best available today isn't enough to sustain a person by itself, and it's not solely because of exploitative employers. This is why universal healthcare and universal basic income will be important ideas going forward. The commodification of labor isn't going to be around forever, and while it persists, it's going to change alot. More automation means more people who do work at all do it the way I do. I can tolerate this arrangement because I basically already have the benefits of universal healthcare and basic income. I'd like them to be universal. People need to be free of the fear of homelessness and starvation for work to legitimately be anything but slavery. I want other people to be free the way I am, and I'd like them to not need to be some kind of cripple to get it.

    1. Re:They aren't the root of the problem. by Anonymous Coward · · Score: 0

      "Universal healthcare" and UBI come from the government. They take money from other people and give it to you (or pay your bills with it).

      "I want other people to be free the way I am". Sorry, buddy. You're not free. You're just a slave with a different master.

    2. Re:They aren't the root of the problem. by Anonymous Coward · · Score: 0

      "Even then, that money isn't theirs to fuck around with"

      Oh sweet summer child.

    3. Re: They aren't the root of the problem. by bistromath007 · · Score: 1

      If my "master" doesn't tell me to do anything, how are they not simply my benefactor?

      Currently, that isn't the case. The structure of the disability program is such that working part-time is a significant risk that I'm still waiting to see the precise form of. My master does give me an order: "live in poverty." I disobey it at my peril.

      If the only string that income came with were that it requires a source, it'd be a different matter. A matter of tax reform, which we also need.

    4. Re: They aren't the root of the problem. by Anonymous Coward · · Score: 0

      >If my "master" doesn't tell me to do anything, how are they not simply my benefactor?

      You're right, they just hold a gun to your fellow citizens' heads in order to fund your "freedom."

    5. Re: They aren't the root of the problem. by bistromath007 · · Score: 1

      Dude, taxes will be collected no matter what. That's how shit works. I would like for a greater portion of that money to directly benefit the people.

    6. Re: They aren't the root of the problem. by lgw · · Score: 1

      If my "master" doesn't tell me to do anything, how are they not simply my benefactor?

      The cat thinks she's the master of the house until her kittens are given away. If you can't live without the monthly check from X, X can become your master whenever they decide to.

      --
      Socialism: a lie told by totalitarians and believed by fools.
    7. Re:They aren't the root of the problem. by Anonymous Coward · · Score: 0

      "Universal Healthcare" is paid by taxes, which GP probably pays. Private healthcare is paid by sending the money to a profit-based insurance company. The main difference is that the latter is going to skim your money, at risk of your health and life, to make a profit. So, guess what? They are taking your money and giving it to other people. Also, if they had a choice, the company would keep your money and let you die anyway. Yeah, that does not sound awesome.

    8. Re: They aren't the root of the problem. by bistromath007 · · Score: 1

      That would be the case if we were talking about pretty much anything other than money. You can't give somebody money without increasing their net liberty. You can put strings on it which curtail them in particular ways, but they'll gain more options elsewhere. The money I get basically says "don't get work that could actually sustain you." So, I don't do that, but because I can contribute *something* to a household I'm part of, I am more welcome to be part of one. I don't think I need to explain to you how sleeping in a bed makes a person more free than sleeping in a park, or how having a fridge is liberating compared to only buying food you can carry each day. Because I can only work part-time, I also have most of every day, forever, to do whatever I want with it. Is that not liberty? I'm not a model self-actualized civic participator, but I was never going to be anyway, and neither are any of you able people. That kind of freedom is really expensive.

    9. Re: They aren't the root of the problem. by lgw · · Score: 1

      As soon as someone needs your check, you own them. Doesn't matter that they didn't need your check before you started giving it to them. People will disregard other opportunities which could have been liberating if your check is easier.

      --
      Socialism: a lie told by totalitarians and believed by fools.
    10. Re: They aren't the root of the problem. by bistromath007 · · Score: 1

      I am well aware of the tendency of startups to behave without fiduciary responsibility. Hence the aforementioned "littering."

    11. Re: They aren't the root of the problem. by bistromath007 · · Score: 1

      That sounds a great deal like what we currently call "employment," as opposed to any form of work where workers have more control over their time. For as long as the labor market has existed in its current form, we've been telling people who don't like their job, with bloody-minded stubbornness, to get a different one, as though everyone can afford to take half a year off to find something better. They choose to work long hours for decreasing benefits! That makes it not slavery!

      That sector of the market has now been trashed to the point that many non-senior workers are forced into stitching together a shitty and unstable life out of a never-ending series of gigs. As there is more automation, this will happen more. For a time, there will be more work, but companies will be less willing and able to give full benefits for that work, because it doesn't flow the way it used to.

      Those benefits aren't luxuries. They have to come from somewhere, or people can't support themselves. If the bosses can't pay workers directly, they've got to start pooling their resources via taxes, or there won't be any fucking labor to exploit.

    12. Re:They aren't the root of the problem. by bistromath007 · · Score: 1

      Getting alot of this, so before you reply to the above post, please ask yourself: "am I about to behave as though this person has never heard of taxes? Alternately, am I about to behave as though taxes are somehow avoidable if the government provides no services?" If you answered "yes," do us both a favor and find something else to do.

    13. Re:They aren't the root of the problem. by Anonymous Coward · · Score: 0

      So you are a contractor and a leech.

    14. Re:They aren't the root of the problem. by antdude · · Score: 1

      Which company is this? I am also disabled and cannot find a job. :(

      --
      Ant(Dude) @ Quality Foraged Links (AQFL.net) & The Ant Farm (antfarm.ma.cx / antfarm.home.dhs.org).
    15. Re: They aren't the root of the problem. by bistromath007 · · Score: 1

      No idea whether my current client still needs help, but if you put together a profile on upwork.com and wade through crappy and scammy postings for a week or two, you're pretty likely to find something legit. I don't have any of the networking necessary to be a truly independent entrepreneur, so that website has been really transformative to my job search process.

    16. Re: They aren't the root of the problem. by antdude · · Score: 1

      Ahh, freelancer type of job.

      --
      Ant(Dude) @ Quality Foraged Links (AQFL.net) & The Ant Farm (antfarm.ma.cx / antfarm.home.dhs.org).
    17. Re:They aren't the root of the problem. by Shaitan · · Score: 1

      "precisely because I don't cost them anything when I'm not working."

      In my experience most of these tech companies still pay you a standard 40hr minimum week regardless.

  12. Re:Before you commies get you panties in a bunch by ElVee · · Score: 5, Interesting

    I see the gig economy as an opportunity for older tech workers like me. Most companies don't want to hire a near-60-something as a permanent employee, but have no problems with signing me to a contract. I'm not ready to retire yet, but I do have, to quote a movie, "...are a very particular set of skills. Skills I have acquired over a very long career."

    Most companies need my particular skills for a big project maybe up to a year, two at the outside. At the end, I train a lower-paid permanent employee to manage things, then I move on having added whatever new skills I picked up during the gig to my resume. Since it's always a short-term gig with a deadline, I can charge extortionate hourly rates and work lots of overtime and everybody's happy. Then I can add another blurb to my resume "Implemented widget sorting system at BigCo" and add another 5 bucks an hour to my rate. Win-win.

    I do work for a staffing firm. It's sort of a pimp-hooker-john relationship. They're my pimp and do a good job of finding me another john (job) when I'm done with the current contract.

    --
    - Pithy comment goes here.
  13. Sometimes its easier to hire overseas contractors by GWBasic · · Score: 2

    In my team, it's much easier to hire overseas contractors. It's not about internal office politics; it's that we work with a contracting firm that makes a big effort to screen candidates well. I find that American recruiters are so focused on being salesmen that it's very hard to pre-screen candidates. They work hard to convince us that a candidate is awesome, when in fact the candidate is a poor match. In contrast, when our contracting firms present a candidate, there's a good chance it's a good candidate.

  14. Re:Before you commies get you panties in a bunch by LynnwoodRooster · · Score: 2

    More pay, varied work environment/experiences (no golden handcuffs), no repercussion from deciding to take a few months off between contracts (try to arrange a 2-3 month sabbatical at most companies), typically you're opinion is respected more (you're the hired gun/expert for the issue, so they will listen to you more - at least, that's been my experience). And easier to work remotely.

    --
    Browsing at +1 - no ACs, I ignore their posts. So refreshing!
  15. Both parties quite guilty by Tablizer · · Score: 2

    You support the DNC. You support unlimited illegal immigration. You support unlimited H-1B visa.

    BOTH parties do in practice. GOP only gives curbing undocumented workers lip-service. Biz bribes GOP to not do anything because they want cheap labor. (Bribery is via campaign donations.) And Democrats tried to hire more border guards roughly 4 years ago and were blocked by GOP, citing debt concerns. (Now GOP doesn't seem to care about debt.)

    As far as the "violence", you are cherry-picking incidents and individuals. I can do the same with conservatives.

    1. Re:Both parties quite guilty by Anonymous Coward · · Score: 2, Interesting

      As far as the "violence", you are cherry-picking incidents and individuals. I can do the same with conservatives.

      No you can't.

      Steve Scilise was shot
      8 other GOP members were shot at in same incident
      Rand Paul's ribs were broken
      Rand Paul was attacked at airport and has been given death threats
      Sarah Sanders was attacked going out to eat
      Ted Cruz was attacked going out to eat, twice
      Mitch McConnel was attacked going out to eat
      One GOP candidate was attacked with a knife at an event

      Response from DNC. Maxine Waters says to do more of it, Corey Booker says do more of it, Eric Holder says to do more of it.

      Show me DNC members being shot and GOP congressmen saying they support it and there should be more of it. You can't because you lied. You can't help lying because you are a liberal.

    2. Re:Both parties quite guilty by Anonymous Coward · · Score: 0

      Steve Scalise deserves to be shot again. McConnel, Sanders, Paul, all of them haven't even tasted what they deserve, or what's coming to the nazi cowards soon.

      You back nazis and you hang from your faggot neck with the nazis, we're bringing it back now.

    3. Re:Both parties quite guilty by Anonymous Coward · · Score: 0

      Faggot/nazi. That's a new combo.

    4. Re:Both parties quite guilty by Tablizer · · Score: 1

      "Attacked". LOL. Con snowflake.

      Yip, the Drama-Knob is cranked to "11" on that guy. Mitch's take-out carton was violently attacked. Commie Animals!

      I was going to list conservative-based attacks and threats as a counter, but it won't likely do any good: he's stuck in a mode.

    5. Re:Both parties quite guilty by Anonymous Coward · · Score: 0

      See, attack members of Congress and the DNC supporters crawl out of their shitholes to encourage more of it.

      Like I said, No you can't say the same. In fact YOU are making the point that the DNC and its supporters are the complete assholes that probably sholdn't be given any power over anyone.

      Glad you could come along and make my point for me... against your own argument.

    6. Re:Both parties quite guilty by Tablizer · · Score: 1

      Hey Cherrypick Bob,

      Right on cue, your "fireworks" buddy is making news with mail to about 4 Dems and to Orangeman's favorite news org.

  16. Re:Before you commies get you panties in a bunch by HornWumpus · · Score: 5, Insightful

    The more they pay for an opinion, the more weight they place on it.

    Which is why I have the clients best interests at heart when I extort...er...negotiate my rate. It's so they get full value, if I let them get away with paying me less, they'd be liable to ignore my advice.

    --
    John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
  17. Re:Before you commies get you panties in a bunch by LynnwoodRooster · · Score: 1

    Precisely! And the more you charge, the more they want you as well...

    --
    Browsing at +1 - no ACs, I ignore their posts. So refreshing!
  18. Its the economy stupid.. by bodog · · Score: 1

    'The U.S. jobless rate dropped to 3.7 percent in September, the lowest since 1969'

    Guess Trump gets a second term?

    1. Re:Its the economy stupid.. by harrkev · · Score: 1

      Nope, this is the result of Obama's policies. Obama was clever enough to make sure that the real results of his policies did not really kick in until two years after he was out of office.

      --
      "-1 Troll" is the apparently the same as "-1 I disagree with you."
    2. Re:Its the economy stupid.. by Anonymous Coward · · Score: 0

      If I spent a trillion dollars on the credit card I could employ a few people also....

  19. The military ... by CaptainDork · · Score: 4, Interesting

    ... shares a similar dark secret.

    There are more contractors hired by the military than there are actual military headcount.

    --
    It little behooves the best of us to comment on the rest of us.
    1. Re:The military ... by Anonymous Coward · · Score: 0

      Military doesn't build things or write code. Federal employees are all insane. So that leaves contractors to do the work.

    2. Re:The military ... by CaptainDork · · Score: 1

      Because you spent 9 years in the military and you're dismissing the Sea Bees and all of IT, right?

      --
      It little behooves the best of us to comment on the rest of us.
    3. Re:The military ... by Anonymous Coward · · Score: 0

      Use the term DoD instead of military, then it encompasses a much bigger bunch of contractors.

  20. OT: I support LEGAL immigration by Anonymous Coward · · Score: 0

    You support unlimited illegal immigration.

    I support greatly expanded legal immigration. Yes there will be a "hit" to wages and living standards for those of us already here but our children and grandchildren will inherit a much richer economy as a result.

    Currently we accept a few million legal immigrants each year. When the economy is good like it is now we can easily accept several times this number, even if many don't yet speak English and may be a drain on the economy their first few years here and/or will drag down wages in the short term.

    Let's bring back the 19th century rules that said if you weren't sick or a criminal we'll let you in. Adapt them for the 21st century by requiring an economic sponsor - typically a family member or immigration-supporting church or non-profit - to guarantee payment of a return trip home if you become de-portable and to demonstrate that you will have living expenses paid for you for up to a year if you are not employed or are under-employed. Also allow communities to temporarily say "no more for now" if their local unemployment rate is very high or they have taken in a very high number of immigrants in the last year or two.

    Only say "no more for now" if the entire country is in a recession or we've taken in a huge number as a nation in the last year or two and we need a "time out" to get everyone settled.

    1. Re:OT: I support LEGAL immigration by Anonymous Coward · · Score: 1

      If you are going to bring back 19th century immigration rules, I want my 19th century social plans and tax rates back as well. Open boarders would be a lot more viable if we didn't have to pay for healthcare, education, housing and food for everyone that shows up. That's why it doesn't work.

    2. Re:OT: I support LEGAL immigration by Anonymous Coward · · Score: 1

      Let's bring land grants back too. Oh, wait, there's no more free land left to give out? Maybe this place isn't what it was in the 19th century. Maybe we're full. I'd like all the basic shit that was cut from public schools added back before we open the flood gates any further.

  21. Re:Before you commies get you panties in a bunch by Marxist+Hacker+42 · · Score: 1

    How about RETIREMENT? They're replacing the workers who traditionally earn the most, putting more stress on the already overburdened Social Security system when these people are forced to retire due to illness.

    --
    SJW: a person who perceives an injustice, and while correcting it, commits a greater injustice.
  22. Re:Before you commies get you panties in a bunch by Marxist+Hacker+42 · · Score: 1

    And in the meantime, take 50% to 75% of your rate, and provide you with really crappy benefits.

    --
    SJW: a person who perceives an injustice, and while correcting it, commits a greater injustice.
  23. Re:Sometimes its easier to hire overseas contracto by Anonymous Coward · · Score: 0

    Huh? This makes little sense; overseas firms want their consultants staffed on a project just as much as US ones - how honest they are at this has nothing to do with the companies location, you'll find variance all over the place.

  24. Nothing secret about this. by WindBourne · · Score: 2

    It is the H1Bs and these companies are able to get not just contractors, but contractors are some of the lowest rates going.
    This is why we need to kill H1B progran and instead increase the greencards. In addition, we need to require that anybody that comes to America on a tech visa, not be allowed to contract out for say 5 years. IOW, they can work for contract shop for 5 years.

    --
    I prefer the "u" in honour as it seems to be missing these days.
    1. Re:Nothing secret about this. by Anonymous Coward · · Score: 0

      It looks like you don't have a clue about how H1B program works, who get these visas, home many of them actually are in the US.

  25. They are not lying by SuperKendall · · Score: 1

    At most of the places I've contracted for, I know what the employees make and know what I make.

    I assure you, I make more than the employees - sometimes am offered a permanent position, but it's always at a lower rate because I would get "benefits".

    I don't doubt what you are saying but it really means you should have set contracting rates a lot higher, or increased them through the years.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
  26. Still doesn't dodge taxes though. by SuperKendall · · Score: 1

    It is true there are two different kinds of contracting for sure, and in some cases like the ones you mentioned maybe the wages can be lower for what is kind of unskilled programming work...

    However like I said, in those cases taxes are still not being evaded, the consulting firm providing the workers is paying the taxes for them (since that was the original point of discussion).

    I have seen some people use that lower platform as a way to actually become more a real worker... but you have to have drive to do so. I don't think it's a good way for someone to try entering programming as a carrier.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
  27. TFS title by Anonymous Coward · · Score: 0

    TFS title should've read "Silicon Valley's Dirty Secret: Using a Shadow Workforce of Contract Employees To Drive Profits with Plausible Deniability"

  28. Seen this in the UK for a while... by bradley13 · · Score: 1

    In recent years, I'm more familiar with the UK labor (um...labour) market than the US, and there the situation has really developed into a class-based society. You have the "nobility", who have jobs with benefits. And you have the "serfs" who are technically "temps" - short-term contract positions with no benefits. I know of cases where only upper management are actually employees - everyone else, from middle management on down, is a temp.

    The advantages of this are obvious, at least to pointy-haired types: reduced costs and flexible labor - you can hire-and-fire on a whim.

    The disadvantages are numerous. For the temps, life is insecure: jobs are short, typically somewhere around a year. They have no benefits, and if they don't manage to hang jobs seamlessly together (and how are you supposed to do that?), they wind up spending their savings surviving the frequent times of unemployment. Or else, this racket get subsidized by the taxpayer, when they wind up on benefits.

    There are also downsides for the businesses that the spreadsheet-driven managers don't seem to understand. If you have any business with face-to-face customer service, customer loyalty is seriously impacted, because there's always someone new - you never see the same person for an extended period of time. There is also a lack of loyalty within the business - if you're just temporary, why should you actually give a sh*t? Difficult issue? Just shove it aside - by the time it become critical, you'll be gone anyway.

    Lastly, consider training, and errors. The UK is a seriously chaotic place to do business. At least part of this is due to the fact that everyone is always new, always just learning the job. By the time they know what they are doing, they're gone, and next temp is hired.

    Sad to hear that the US is going the same way.

    --
    Enjoy life! This is not a dress rehearsal.
    1. Re:Seen this in the UK for a while... by DaMattster · · Score: 1

      Yes, it is indeed sad. Do you remember Jeff Bezos tweeting out the wage increase to 15.00 per hour? What was left unsaid was that in order to work at Amazon, you basically work through a staffing agency in a so-called temp-to-hire capacity. However, Amazon makes no guarantees of a conversion at all so you work as a temp. My guess is it is cheaper for companies to bring in contract labor because there is no cost of hiring, terminating, or even benefits associated with said labor. It's an underhanded move when the company is wildly profitable and it has made me more and more anti-capitalist as I get older.

  29. Time to raise salaries by Anonymous Coward · · Score: 0

    Housing prices skyrocketing
    Stock market at record highs
    Time for salaries to double.

    1. Re: Time to raise salaries by Anonymous Coward · · Score: 0

      +1 reality

  30. Difference between employee and contractor by FeelGood314 · · Score: 1

    Contractor vs Employee is about the level of control and independence. Control is: Who sets the hours, who owns the work place and the tools, who decides how a task will be solved, can you work for more than one person.
    Uber driver, picking his own hours, driving his own car and even to some extent choosing the route to drive - contractor.
    Cube dweller payed $150/hr, working 9 to 5, using a company computer - employee.

    Most western governments use degree of control/independence as the measure for employee vs contractor and they can't enforce it because they are often the worst offenders for breaking it.

  31. Superfag Ken Doll has been unemployed for a decade by Anonymous Coward · · Score: 0

    This nazi cunt Ken Doll spends all her time giving life advice on slashdot to anyone dumb enough to listen, obviously it hasn't had a real job in over a decade and now pretends to be a contractor, lol.

  32. Re:Before you commies get you panties in a bunch by Anonymous Coward · · Score: 0

    Drives down wages. If you are someone who works, rather than employs others to work, you want high wages, not low.

  33. a gig is not a job by originalGMC · · Score: 1

    a gig is not a job. This percentage is incredibly wrong.

  34. Nazi faggot Ken Doll you don't know jack, sorry by Anonymous Coward · · Score: 0

    It's so obvious what a lying faggot you are Ken Doll, nobody should take any single bit of bullshit that falls out of your bitch mouth seriously, jobless nazi coward.

  35. Re:Before you commies get you panties in a bunch by Anonymous Coward · · Score: 0

    How about if I use words like 'faggot' and 'asshole' and phrases like 'fuck you'?
    You probably work directly for whatever company you work for and aren't even affected by this, in which case you can STFU.

  36. If you do this by Anonymous Coward · · Score: 0

    I will never work for you. I cant be bothered to waste time with an organization who isnt serious about retaining talent. If you do this, then fuck you.

  37. Workaround for 'only rockstar ninja' hiring. by Average · · Score: 1

    At least at a couple of those firms mentioned (Alphabet, Facebook), they've boxed themselves into a crazy level of "only the best" multi-day intense interviews hiring. Can't remember every IPv6 header on a whiteboard? Can't rattle your Linux syscalls for a SRE job? Don't fully know the internals of a dictionary in Python? Don't have any TEDx talks? Out the door. Meanwhile, they backfill a lot of those very same roles with contractors who, while they don't last as long, don't go through *near* the rigor in getting in.

    1. Re:Workaround for 'only rockstar ninja' hiring. by PrimaryConsult · · Score: 1

      They're also a good "try before you buy" option, where they directly hire the best of the contractors after seeing how well things go for a few years. The huge companies (and governments) basically point at contract companies' non-compete section where the contractor can't work directly for the client for x years, laugh, and say "yeah strike that or not a penny of our multi-million dollar contracts will go through you".

  38. Re:Before you commies get you panties in a bunch by Aighearach · · Score: 1

    The game fails though if you're allowed to say "gig economy" but not "union."

  39. You mean like Uber? by Qbertino · · Score: 1

    Not really surprising. Google and Co. are large computers with large pieces of software on them - not much more. What are humans supposed to do in that context? Come up with Google Chat App #11? The novelty effect of silicon valley is wearing off and two decades from now the party will be in the far east or somewhere else. This is just how things like this go.

    --
    We suffer more in our imagination than in reality. - Seneca
  40. Re:Before you commies get you panties in a bunch by Anonymous Coward · · Score: 2, Informative

    Depending on the industry this can be good, or extremely bad.

    It also depends on the long term goals of the individuals, companies, and societies at large.

    I work as an engineering consultant. We have an older colleague who does exactly what you describe. He comes in to work on some heavy hitting projects and then he's out the door.

    This is great for us as a consulting company, it works well for our clients and solves the immediate problem.

    The bigger issue is the other side to my collegues story. He used to be a full time engineer at a chemical plant. They typically hired in a cycle of having one "old timer" and then a middle aged guy, and a young new engineer working all the time. That way they trained up the new people, always having three engineers in any role, one with a LOT of experience, one who did the main work, and a new guy to train and learn the ropes.

    As time went on they dropped the new guy-- why waste money training a new guy when they'll have the forty year old around for another 25 years? And who needs the old timer full time when he can go part time? Gotta save those dollars!

    Fast forward and you get my colleague, who left his company in the hands of an engineer fresh out of school with no training. When he announced he wanted to go part time they quickly hired someone and told him he had to stay full time and train him. He wanted to retire though, did his best to impart 40 some years of knowledge onto the new kid and then jumped ship for our consulting company where he could work part time (like he expected). When his old company realized they couldn't possibly function without an engineer with intimate knowledge of their plant and systems they reached back out to him. We then billed him back out to his old company... at a higher rate...(part time, of course).

    The problem with the gig economy is that while it's great for everyone's bottom line, it isn't usually very good for company or product long term. Sure if you have some unique difficult project work, hire a contractor (or hey! Hire an Engineering Firm like us!), but if your goal is to build and progress knowledge and to make a long term product or company successful, it's a losing proposition.

    It's also a losing proposition for anyone NOT in the position to hop job to job making tons of money off their already existing experience. Gigs make sense when you have 20-30 years in a field. When you have 2-5? Good luck bringing in those big dollars, and good luck paying for your healthcare. It's also not a friendly place for someone with any type of continual health costs or disabilities, as gaps in healthcare or high cost care is going to negate the dollar gains from the contracting work.

    Even worse is when everyone is fighting for those gig jobs, prices are going to drop, and the tradeoff of "high dollars for unstable work" vs "low dollars for stability" is going to disappear in lieu of just "low dollars for unstable work".

    People seem to think their job is immune to this type of thing. If we let it happen we're all just going to be fancy day laborers. It was good while it lasted I guess.

  41. Re:Before you commies get you panties in a bunch by cayenne8 · · Score: 4, Interesting

    And in the meantime, take 50% to 75% of your rate, and provide you with really crappy benefits.

    If that is the case, then you either are not good at negotiating your rates/work rules with the contracting house....or you don't know enough about the business to know to move onto the next one.

    One thing to do, however, is to incorporate yourself, it is much easier to contract as an individual 1009 if you are incorporated and do corp-to-corp. Contracting 1099 to an individual scares the shit out of companies, as they can get stung like MS did years back by contractors coming back to sue to claim employee-hood.

    If you incorporate, even the contract houses will often work with you and take a smaller finders fee cut....sometimes just a cut for first few months of contract, then, the whole bill rate is yours.

    This can be a lucrative business, but you have to put on your "big boy" pants, and learn to manage yourself, promote yourself, do paperwork, taxes AND how to budget your negotiated bill rate to cover your pay, time off, and retirement funds yourself.

    It isn't rocket surgery, but along with higher dollars and more freedom, comes more personal responsibility.

    --
    Light travels faster than sound. This is why some people appear bright until you hear them speak.........
  42. Re:Before you commies get you panties in a bunch by Anonymous Coward · · Score: 0

    OK. It's a bad thing because they're lying. From TFA:

    "One reason is when the company doesn't have or want to build out expertise in a particular area....Another reason is a need for temporary workers when there is a sudden spike in workload...."

    bullshit. I work for one of these companies. They use contractors for one and only one reason: NO BENEFITS. No company car/phone/tablet/gas card/etc., no health insurance premiums (that's a big one), no pension, no savings matching, nada. You can save millions of dollars this way if you're a big company.

    The result? one third of all Americans now without health insurance or retirement savings. our future = dark

    so please explain to me how this is great, and how it helps Americans to engineer a system in which NOBODY gets the THINGS THEY NEED TO LIVE?

    i'm waiting for any logical arguments not based on a fallacy. (crickets chirping). hello? (tumbleweed rolls by)

  43. Mercenaries are useful by TJHook3r · · Score: 1

    Long term employees can become stuck in a rut and lose their motivation, especially if there are peaks and troughs of interesting work. On the upside they develop unrivalled domain knowledge on that business. Sometimes though you just need an experienced person who will do a solid 3 month stint, enthusiastically. They usually don't get involved in internal politics and will hopefully know their stuff - for a price.

  44. Nothing new by Anonymous Coward · · Score: 0

    There is nothing new here. This has been going on since the late 70's. So welcome to the party. The only difference is that since the early 2k's using and abusing Temps has spread out to all sectors in the US economy including the public sector.

    I post Anonymous because I could care less!

  45. Re: Before you commies get you panties in a bunch by Anonymous Coward · · Score: 0

    Nobody gets the things they need to live? This is the richest society in history, even when viewed from the bottom. If your adult memory goes back more than ten years, you are not a child of privilege, and didn't grow up in coal country, you probably know this from the facts of your own life.

  46. Company that rhymes with Hell by smeghmeh · · Score: 1

    I was a direct employee for a company that rhymes with Hell. During my 5 years there, about half of my team consisted of contract workers on a continuing rotation. These were not telecommuters. By keeping only half staff direct, continuity was maintained, and by rotation of contract workers, benefit costs stayed low. Once a contract was up, the contractor would be shifted to a "sister" company until that contract ended. Rinse and repeat. There are people who have worked years this way without benefits.

  47. Re:Before you commies get you panties in a bunch by ranton · · Score: 1

    And in the meantime, take 50% to 75% of your rate, and provide you with really crappy benefits.

    10% - 20% is far more common.

    --
    -- All that is necessary for the triumph of evil is that good men do nothing. -- Edmund Burke
  48. the industry is simply gunshy by Anonymous Coward · · Score: 0

    The use of contract workers in tech at the moment is predominantly driven by a need to be prepared for the coming bust.

    The great recession was so huge that it still feels like yesterday. It left a much longer lasting fear imprint.

    It is widely believed in economic and business circles at this moment that we will hit another recession within the next 18 months. Many actually see it as a "the sooner the better" deal because the higher we climb before it happens, the worse the fall.

    The tech industry is revving much higher and faster than most. When the recession hits (nobody says "if"), they will have a much better chance of scaling back quick enough to survive through letting contract workers go than letting employees go.

    In the case of the FANG companies and some of the other big ones, they have additional reasons. Success brings attention. They are all in the sights of regulators. At any moment, they can suffer huge losses via fines or regulation. Maintaining a nimble employment profile helps to survive those losses in the same way it helps to survive recessions.

    This is an industry that has been hit by bust more than once practicing prudence in the wake of still recent trauma.

  49. Re: Before you commies get you panties in a bunch by Anonymous Coward · · Score: 0

    What sort of $$$ are we talking about though ? Where I am (smaller capital city in Auatralia) the average IT security contracting rate is about $125/hr to the contractor... that goes up a bit in places like Sydney etc...

    What sort of rates are infosec contractors in there ? I mean..GRC type stuff, not a neckbeard doing firewall rules all day.

  50. Re:Before you commies get you panties in a bunch by Anonymous Coward · · Score: 0

    "Explain" this to me clearly, but you can't use certain words I don't like to do so and you won't be able to convince me no matter what you say. Nice.

  51. Re:Before you commies get you panties in a bunch by Anonymous Coward · · Score: 0

    That relationship is particularly toxic to younger workers, if everybody had niche skills, would there still be niches?

  52. Re:Before you commies get you panties in a bunch by Anonymous Coward · · Score: 0

    Foreign H1-B holders trying to form unions. Management will not stand for this sort of behavior.

  53. In what way is this secret? by smoot123 · · Score: 1

    This has been common practice at every high tech company I've worked at over the last 30 years. They all had a mix of permanent and contract employees.

    There are any number of reasons to do this, some good, some misguided. It's like buying versus leasing a car, or buying versus renting a home. Depending on the circumstances, you might want a temporary relationship.

  54. Re: Before you commies get you panties in a bunch by Anonymous Coward · · Score: 0

    "Auatralia" is that a country? Is not being able to spell not a problem in Australia?

  55. Re:Before you commies get you panties in a bunch by BradMajors · · Score: 1

    Illegal aliens. They are doing this to hire illegal aliens. There is no e-verify for illegal alien contractors.

  56. Re:Sometimes its easier to hire overseas contracto by Guppy · · Score: 1

    This makes little sense; overseas firms want their consultants staffed on a project just as much as US ones

    I'm guessing the headhunters in parent poster's US contractor firm function as something like temporary contractors themselves as well -- the headhunter's goals are much shorter-term than the corporation they work for.

    Maybe they even get a commission (which is a terrible incentive structure that ensures their goals don't align with the customers').

  57. Re: Nazi faggot Ken Doll you don't know jack, sorr by Anonymous Coward · · Score: 0

    Wow, I hope I can get my own personal troll someday too.

  58. Re: Before you commies get you panties in a bunch by LynnwoodRooster · · Score: 1

    I do technical engineering (not SW or IT) and have no problem asking for - and getting $250+ per hour. If it's an interesting project I want to work on, I'll lower my rate to $200 to "buy" the deal. A few clients I really don't like, I quoted $375/hour - and one took it. I may not enjoy the 10-15 hours per week - but at least I earn decent pay.

    --
    Browsing at +1 - no ACs, I ignore their posts. So refreshing!
  59. When it's done at scale it's not management by rsilvergun · · Score: 1

    it's a tax/benefits dodge. The 150% cost is still less than paying the various benefits and taxes to the employee. For one thing contractors don't have unemployment benefits. Plus upper management likes being able to fire on a moments notice if they need a quick stock bump. Most jurisdictions require a few months notice.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
    1. Re:When it's done at scale it's not management by jeff4747 · · Score: 1

      The 150% cost is still less than paying the various benefits and taxes to the employee

      The 150% includes that. It's not like the staffing firm does not have costs when their employee works as a contractor.

      Plus upper management likes being able to fire on a moments notice if they need a quick stock bump. Most jurisdictions require a few months notice.

      Zero in the US do. And since Silicon Valley is the subject of the story, US rules would seem to be the most relevant.

  60. That's because you're a consultant by rsilvergun · · Score: 1

    not a contractor. Most contractors are really full time employees. They're doing work critical to the business on a routine schedule. Companies hire them explicitly to get out of paying unemployment insurance, health benefits and payroll taxes.

    The problem isn't actual contract gigs or consultancies. The problem is when the company hires contractors to do stuff like tech support of key, long running products or monitoring of base systems. That's the bulk of your "contractors". It's the IT equivalent of Uber.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
  61. Your assuming they won't hire the 60 year old by rsilvergun · · Score: 1

    if he/she's not a contractor. Facts not in evidence. It does not follow from "company A hired a 60 year old" that they wouldn't have hired them without the advantages from contracting.

    There is one big advantage to a contract when hiring 60 year olds: You can fire them and hire somebody younger and it's not age discrimination, it's just that their contract was up, and they just happened to give a guy in his 20s the permanent position.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
  62. The job market isn't as good as you think it is by rsilvergun · · Score: 2

    not when companies can just say "Oh well, we tried, time to get an H1-B" any time they can't find somebody willing to take a job for $20/hr, weekend graveyards, $220/week health insurance and you need a 4 year degree and 8 years experience in tech for this senior position that is somehow critical enough that we get an H1-B but not so critical that we can't have a contract worker do it.

    Workers have lost virtually all bargaining power in the global economy. It's why Donald Trump is our president. He ran on fixing that and it resonated for a reason.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
    1. Re:The job market isn't as good as you think it is by cayenne8 · · Score: 1

      "Oh well, we tried, time to get an H1-B" any time they can't find somebody willing to take a job for $20/hr, weekend graveyards, $220/week health insurance and you need a 4 year degree and 8 years experience in tech for this senior position that is somehow critical enough that we get an H1-B but not so critical that we can't have a contract worker do it.

      Well, if that's all that company is wanting to offer, I'd not want to work for them.

      There ARE plenty of other opportunities out there, right now it is more of an employees market as that unemployment is low, and economy is booming.....

      If you have talent, you can name your price in most cases. You do still have to shop around and be willing to move to where the best jobs are...but that's nothing new over past decades.

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    2. Re:The job market isn't as good as you think it is by Anonymous Coward · · Score: 0

      Maybe you haven't notice but in Trump's America, its getting harder and harder for them to pull the H1B and L1 bullshit.

      For all of its problems, Juche-Trumpism is making a lot of these businesses scared to abuse the system.

      Long-term, it is bad, as the rising wages and prices are going to lead to a hyper-inflationary spiral due to insane spending, when we've had price and wage deflation with cheap overseas labor and products, but in the short-term, you can milk the system for all its worth.

      I am working two jobs right now, and about to take a third, just to bank the money. All you have to do is pretend to breath. Is it unethical? Yes, its unethical as hell. But it is where we are.

  63. Re:Before you commies get you panties in a bunch by Anonymous Coward · · Score: 0

    Agreed. Plus many companies treat you like a full on salaried employee having to follow full time rules (inflexible hours, dress code, a desk you have to sit at) with the added bonus they can dump you any time without notice.

    The worst part is "all" (and I am not exaggerating) of the big staffing agencies like manpower/experis are on the employers side. They aren't going to burn a bridge with the employer to clue you out if they know something bad is going to happen (they know they can find another person, having clients on the other side is what they want)....its really a joke, and its one of the reasons I went for a fulltime gov job as soon as I found a good one.

    Its just one of those rules, when costs are cut, often someone has to pay the price....nothing is free. Someone has to pay the piper.

  64. NC Is plagued with this by Anonymous Coward · · Score: 0

    All the big tech companies in the Triangle do this: IBM, Lenovo, Cisco, on and on. I couldn't tell you the difference between myself and the full time employees when I worked for these places.

    I suppose the only difference is they weren't getting shafted in compensation.

  65. Re:Sometimes its easier to hire overseas contracto by Anonymous Coward · · Score: 0

    I'm guessing the headhunters in parent poster's US contractor firm function as something like temporary contractors themselves as well -- the headhunter's goals are much shorter-term than the corporation they work for.

    :-) So contract worker (headhunter) has shorter term goals & so doesn't provide a good service to their employer. I'm not disagreeing, but I find it ironic given the context.

    Maybe they even get a commission (which is a terrible incentive structure that ensures their goals don't align with the customers').

    Right. Perhaps being told we won't use your company anymore if you send us junk candidates would rectify this (/put poor performing firms out of business).

  66. Are you Ivan? by Anonymous Coward · · Score: 0

    Are you a Russian troll?
    An Indian living in America?
    Either way, English has articles, learn how to use them to blend in better. It will help with your trolling.

  67. HYPOCRISY!!!!!!! by Anonymous Coward · · Score: 0

    How about you do US a favor and stop being a hypocrite. I know for a fact I have gotten into several arguments on this site with you, and you are a hard right conservatard. And yet, NO SURPRISE, you're sucking off the governments teat, collecting your free money while voting to fuck the rest of us over. You can FOAD.

    1. Re: HYPOCRISY!!!!!!! by bistromath007 · · Score: 1

      I'm not sure what you think is "hard right" about somebody who advocates for UBI. Is it the fact I don't fuck with identity politics? My apologies for being a socialist with a personality.

  68. Re:Not lazy, just don't care by Anonymous Coward · · Score: 0

    https://www.youtube.com/watch?v=BTdOHBIppx8

  69. When they say "36% of Americans are freelancing" by Anonymous Coward · · Score: 0

    Is that "only" or "partly?"

  70. I contract. I get paid a *ton* of money. by Anonymous Coward · · Score: 0

    I'm a contractor.

    I get a paid a *ton* of money - far, far more than I ever did working full-time.

    As such, I work a three months every two years.

    I don't have to worry about the company or management being idiots, because I leave in a few months.

    A full time job is hell.

    It's death come early - you work *all* the time, and then on the weekend, you do the things you must do, so you can work *all* the time the rest of the week.

    I think most people do it because they don't know about the alternative.

  71. Re:Before you commies get you panties in a bunch by Anonymous Coward · · Score: 0

    Who cares. When I make $350/hour, do I care how much the pimp make, given that I wouldn't be making that without them?

  72. My expierence by damonlab · · Score: 1

    I work in IT for a large manufacturing company that has nearly 100 manufacturing and retail locations across the US. Most of the locations are remote (surrounded by cornfields). The company has been in aggressive growth/acquisition mode since I hired in a few years ago. I have been in charge of IT infrastructure for the new sites we turn-up. We utilize an outsourced contracted company for network cabling. That company employs contract workers. The reason for this is twofold: my company does not want to deal with 1099 forms for every contract worker, and my company wants a single vendor for all sites. In addition to this, my company has an outsourced (in-shore) helpdesk, which I also manage. The reason for this is that my company does not want the helpdesk people to be regular employees with benefits, that burden is shifted to to the outsourced company. As a direct employee for the company, I get the company benefits and perks, so it works for me.

  73. Re: Before you commies get you panties in a bunch by Anonymous Coward · · Score: 0

    Only 9% of people in the US are uninsured. Also, you are way off on the reasoning ....

  74. If there are all these opportunities by rsilvergun · · Score: 0

    why aren't wages rising?

    I'm not buying the productivity numbers either. Tesla became a top 5 car dealer in less than 10 years. That's crazy. Manufacturing output continues to rise with less workers.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
  75. Re:Before you commies get you panties in a bunch by Marxist+Hacker+42 · · Score: 1

    I find that when I figure my hourly rate as a 1099 after doing all of that, I fall below minimum wage.

    --
    SJW: a person who perceives an injustice, and while correcting it, commits a greater injustice.
  76. Re:Before you commies get you panties in a bunch by Marxist+Hacker+42 · · Score: 1

    When the pimp is making $700/hr, I sure bloody well do.

    --
    SJW: a person who perceives an injustice, and while correcting it, commits a greater injustice.
  77. So you'd rather by gDLL · · Score: 1

    so you rather your kids go hungry just to spite those ev111L capitalist exploiters.....If i can't have it nobody can !

  78. Re: Before you commies get you panties in a bunch by Anonymous Coward · · Score: 0

    Don't be a total fuckhead. It's obviously a typo.

    Moron.

  79. Re: Superfag Ken Doll has been unemployed for a de by Anonymous Coward · · Score: 0

    Look everybody - it's a cowardly anonymous Progressive Nazi asshole, stalking someone who dared challenge the big money Establishment narrative. Look at the Nazi! Hahahahaha, what a loser!