By Jo Best, 28 April 2004 17:35
NEWS Contracting is once again back in fashion, with more and more permanent staff eyeing up a move to freelancing, according to silicon.com's sixth annual Skills Survey.
From a permanent employee's point of view, it seems, contracting is the place to be. This year's survey showed a drop in the number of people describing themselves as a permanent member of staff who wants to remain so in 2002, 61.8 per cent didn't want to go freelance, in 2003, it was 69 per cent and this year, the number dropped to 63 per cent.
Dave Pye, MD of Spring Technology Staffing Group, said that he's seen a rise in the number of bigger names opting to use contractors as well as a rise in the length of the average contract position both of which could be tempting to permanent staff.
In parallel, the number of people who wanted to swap from permanent to contracting work rose in 2002, 9.7 per cent wanted to make the change; in 2003, that percentage dropped to 7.2 per cent and rose again to 10.8 per cent this year.
Contractors themselves, however, were less certain about their rosy prospects. While the percentage of those who described themselves as a contractor who doesn't want to change their employment status was up so was the amount of workers who said they wanted to become permanent.
So is it all good news or bad news for the contractors?
Pye told silicon.com that the split attitude towards contracting could be down to uncertainty over the market and the ever-cynical UK IT worker not quite believing the recovery really is here to stay.
"Some people are not 100 per cent sure the market has picked up. We've seen evidence there's been a growth in the number of contractor positions but not everyone has. People are waiting to see," he said.
Comments
There are 9 comments. Join the discussion
1. anonymous
No training , no career paths, no job security ?
Contracts ? No I'm talking about permanent jobs. All the perceived disadvantages of contract work now apply to many permanent IT staff. You may as well go contracting, the conditions are now very similar and the Money's better when compared to permanent positions.
2. Brian Burkill
I will NEVER return to the contracting market.
I refuse to be reliant on agencies or "Recruitment Consultants" for the supply of my work, having to convince them time and time again that I am able to do a job, redrafting my CV to meet the current fashions, making endless phone calls that do not get returned, sending emails that receive no reply other than the bog standard automated response.
Never again will I risk losing my house, home, marriage and everything I have built up over 25 years on the swings and roundabouts of the contracting market.
Gone are the days of continual studying just to keep up with Microsofts latest fads and trends, or to be on top of the game.
The money may not be as good in the permie sector, but at least its steady money, and the work is steady and not so much pressure to perform.
The market may be on the up, but I suspect it is a short term blip. Wait for the next stock market dip and then lets see how good it is then.
Sorry, I have a chip on my shoulder, but I lost the lot through contracting. It isnt going to happen again.
How many other ex contractors feel the same way, having been forced into permie due to reduced rates, outsourcing, graduates going straight into contracting and cutting prices accordingly??.. Lets wait and see..
3. anonymous
I totally agree with Brian, although I still contract because at the age of 54 I am considered "past it" by arrogant youngsters in senior positions.
Beyond what Brian said some of the disadvantages of contracting are;
- It doesn't pay better by the time you've paid accountants, training etc. Don't forget under IR35 you cannot claim for any training, books and many other thing permanent staff expect.
- You spend most evenings and weekends keeping up with developments in the industry
- Most insurance companies will not cover contractors for mortgages etc.
- Many organisations treat contractors like dirt/people not to be trusted
- Most agancies do not know what they need in a contractor and therefore go for the glib talker rather than the worker
Contracting used to be challenging and dare I say fun but not any more.
4. John Rutter
I agree with much of the views listed too.
But I had contracted for many years, then went into a startup as a permie for a couple of years before that was canned.
Went into another, much smaller, startup as a permie, then got crapped on there after doing all that had been asked of me.
Trying to find a suitable permie role in the job market at that time was really frustrating, so I have ended up contracting again.
If the right position came up in a permie job, at the right pay, etc. then I would like to put in my contribution to the technical and comemrcial side of a business, but I don't see that happening somehow.
So what is a guy to do?
Continue contracting while work is around, but get stitched-up by the Govt with stealth taxes and dodgy Tax commissioners.
Permies have little concern for contractors moaning about tax and so on, but they should try doing the maths before jumping ship...
5. Brian Burkill
John Rutter has made valid points,
I do have sympathy for the current tax regime imposed upon contractors. And any permie thinking of going into the 'Bright lights and big money (Where???)' of contracting should think again. It is not all that it is cracked up to be. 3 month contract here, 3 months off, 4 month contract, 3 months off.. Money works out equivalent to permie without the hassle.
In my last year of contracting, I earned £5000 more than what I am on currently.. Is it REALLY worth it??
As and when the time comes that I need staff, I shall look favourably on the contract market and do my upmost to ensure that they get most of the money (as opposed to the agent) and I wll make sure that the contract definitely lists them as self employed, with everything being as IR35 friendly as possible. I shall also be looking for contractors who are seasoned and experienced.
I was lucky, I obtained a post on good money, good job where my opinion is valued. I appreciate some are not so lucky and some employers do tend to take the mickey. Go for the smaller firm.
6. anonymous
I've been reading a lot of comments lately, mostly the ones from IT professionals.
I'm a developer who is currently undergoing a career break and studying for a Masters degree. My experience of the industry is that up until about 2001 working as an IT pro was satisfying but then I saw the ugly spectre of globalisation and offshoring.
Once I've finished my Masters I will be emigrating. Lets face it working in the UK as an IT pro is pretty frustrating these days and will only get worse. We have become just numbers like the rest of the work force who get treat like shit from their employers. As long as the bean counters are running the show EVERYBODY apart from senior management and the senior accountants are just a resource that can be replaced by a cheaper resource to increase the stock price.
The people at the top get rich, everybody else gets shafted. Orwell's Animal Farm warned us all about this when we were still at school.
Wish I had something positive to say about the plight of UK IT workers but I think its a bad career these days. You can earn the same money without the stress in other occupations.
7. anonymous
Anonymous in England,
How VERY VERY true your words are.
Spend years at university, study continuously, work hard, then discover that the salary for a carpenter, plumber, electrician or any of the skilled trades is actually higher than yours. Is it worth the effort, when a young lad can go on a modern apprenticeship and be earning more within a year of qualifying, without a student loan to pay off.
Companies are run by Accountants nowadays, who simply see balance sheets and expense forecasts, as opposed to the value that real skilled people bring to their company.
The government shafts any would be entrepreneurs, by taxing and penalising them out of existence. The accountants hired to do your books do not save you a great deal, as there is nothing left to save.
In my opinion, the downturn started just after Y2K and it will NEVER, ever recover.
My best wishes for your emigration, how many others have or will follow suit.
GREAT britain (lower case intentional).... PAH. Great Brain Drain.
Contracting back in fashion.. Not in this once great nation. Try Australia, the States or Canada.
8. Anita
It's interesting to me to hear the perspective from the other side of the pond. I contracted from 1992 up until last year, when I took a perm job after 18 months out of work (they were the only ones offering and one has to pay the mortgage somehow). I can't wait to jump back into contracting. I made twice the money with half the hours. At my current job, I am underpaid and expected to put in many hours of unpaid overtime. The benefits don't even come close to what I used to make. And I miss all the time off. The stress is just too much. Now that the job markets are picking up, it's back to contracting I go.
Tax issues aren't too bad here in the US, if you use agents. I do it just to avoid tax hassles and to be eligible for unemployment compensation between gigs.
9. James
As someone who has been a permie for over a decade - the last 8 years with a leading European consultancy - I must say making the leap into contracting at the beginning of this year was one of the best moves I have ever made.
I have more control over the hours I work (no unpaid overtime), where I work (nobody telling me I have to be in City X in country Y next week) and I actually get to see my family. Plus better off financially!
The consultancy I worked for was GREAT, until we were in a merger 18 months back. With the markets, the last couple of years were bad, but 2003 was hell.
No training, no career, no care for staff and definitely no job security. Many of us left - some voluntarily, others pushed - and guess what, they are hiring again.