By Will Sturgeon, 29 March 2004 15:45
NEWS Companies have reportedly been getting around the issue of slashed recruitment budgets by hiring staff with money intended for stationery and other office 'essentials'.
While the money hasn't always been available for temp staff and contractors during widespread recruitment freezes many companies have found a way to raise a little extra cash for necessary skills and staff when needed, according to IT services firm Parity.
The desperation associated with such redistribution of funds within the enterprise is almost the workplace equivalent of checking down the back of the sofa for 50p pieces to feed the meter.
And such a random approach to hiring isn't good news for contractors. After all, claims Joe Kelly, MD of Parity, if a company is paying you out of the stationery budget then it's unlikely to turn out to be a long-term prospect.
Departments in charge of their own expenses, who choose to bring in staff rather than spend on travel, stationery or other incidental costs, may think they are being masters of their own budget but the bypassing of the HR department can also throw up tricky legal issues.
Kelly added: "We came across one team that had employed over 100 contractors and succeeded in bypassing the HR department completely."
"His finance team must think he uses an awful lot of paper and pens," he added.
Comments
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1. anonymous
Some contractors are doing/claiming 8-12 days a week too, to get around the maximum daily rates available to them - the managers desperately need them and support this - CFO's and the have got used to being so draconian recently, they know nothing other than to say 'no' - which is the reason for the downturn, i suppose
2. Simon Allen
When working on a project for a new telephone system at an American bank in the City, we found that we did not have enough extensions.
So we counted the number of people actually working and found that it was nearly 100 more than the company thought they had. HR sent out a nasty memo to everyone but we got the money for the extra equipment.
Just to show that nothing changes, my experience relates to 1986 ... As the French say, "The more things change, the more they stay the same."