RE: Midrange Jobs National Discussion

"Are the employees being paid the same or more than the consultants?"

This is a fair but quite easy thing explain.  Consultants take quite a bit of 
risk in that they do not have the benefits associated with being a permanent 
employee therefore the pay rate is and always should be slightly higher for 
contracted personnel.  Consultants if used for specific projects are beneficial 
for corporations to use considering the cost associated with the consultant is 
only temporary (duration of the contracted project) as opposed to hiring 
permanent employees.

Permanent IT employees typically represent an expense to employers with no 
expected return.  Obviously if you are an IT person who works on an application 
that generates revenue for the company you work for then the employer can 
easily justify the expense associated with hiring the IT person on a permanent 
basis.

One problem that I've seen in the consulting industry over the past 10 years is 
a shift in how contractors are used as well as the technical proficiency, or 
lack of technical proficiency of the contractor.  More and more I see 
contracted resources with average technical skills used as warm bodies in IT 
shops, versus the knowledgeable and highly technical skilled consultant.  Part 
of the problem with the iSeries platform is that there aren't enough highly 
skilled professionals who can adequately promote the versatility of 
iSeries/AS400 servers and therefore the majority of companies that use the 
midrange platform have no concept of all that it can do.

On my second contract as a consultant I stepped into a position where all the 3 
permanent programmers and 1 project manager had found other jobs and I was 
tasked with providing full lifecycle application support for the plant the 
former employees supported.  The company soon realized that having 1 highly 
motivated IT resource with above than average technical skills at a slightly 
higher cost than for a single resource, overall they had cut their expense in 
half for IT resources at that facility.

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<<I was, and now have

several consultants who are, one of the most senior people in a shop
based on time working there.

Are the employees being paid the same or more than the consultants?  If
so, that would be very unusual in my experience. Why would an employee
stay with an employer that pays more to consultants than they are their
own employees?  This happens often and should explain why the lack of
loyalty from employees. To find a loyal employer...  well, honestly, that
is laughable. A rare bird that is.
-- 


Tammara

On Tue, January 30, 2007 9:17 am, Walden H. Leverich said:

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OK, I know, "speaking like an employer" again... But....

...would prefer to out-source and use contract programmers rather
than hire full-time programmers and keep the knowledge in-house.

Employment loyalty is a two-way street. Perhaps you're one of those that
gets a job and sticks there forever, but many employees are just as
likely to hop to a new position as consultants. I was, and now have
several consultants who are, one of the most senior people in a shop
based on time working there. We've seen employees come and go and we're
still there. So who's keeping the "knowledge in-house?"

I honestly think the fact that I've worked since 1980 as an RPG
and now RPGLE programmer is pretty good.

Spectacular... But to expect that to continue is a problem. What other
industry is like it was 27 years ago?

Last time I checked, there was ONE company hiring contract
programmers in the SF and East Bay area.  Makes it tough to find a

job....

I did read the first paragraph of your email, and I applaud your
commitment to your ex and your sons education/social life, but you've
got to be employed too. If you want to put bounds on your employment
prospects that is your choice, and your right -- heck, I even applaud
it. But you can't then complain about the lack of employment prospects.

-Walden

--
Walden H Leverich III
Tech Software
(516) 627-3800 x3051
WaldenL@xxxxxxxxxxxxxxx
http://www.TechSoftInc.com

Quiquid latine dictum sit altum viditur.
(Whatever is said in Latin seems profound.)


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