RE: Midrange Jobs National Discussion

I think it's pretty clear that consultants aren't "getting" over because of the 
moderate bill rates we charge.  Most permanent employees don't realize the cost 
or the expense associated with being a salaried IT professional, at least not 
in the same manner that a CIO or other business executive does.

It use to be advantage to work for a consulting firm however after you get a 
few years into a consulting career in addition to how consulting firms have 
made changes in order to maintain large profits, for many consultants, they are 
just getting buy on what's available.

Often times working for consulting firms means the employee picks up most or 
all of benefits like major medical.  I found that when I started my own 
company, I could purchase better insurance through my own company than I 
received when I worked for a consulting firm, that had consequently offered 
high cost medical insurance that had very strick plan limitations.

Mainstream consulting companies usually comprise of non-technical 
administrative personnel reaping the rewards of technical personnel.  Greed 
drives low compensation for the consultant and while companies like Wipro 
places consultants in-house on-shore and compensates their consultants with 
comprable pay, lower insurance cost, paid vacation, and paid holidays, American 
consultanting companies often offer lower pay and compensation just so they can 
under bid their competitors.  Good IT resources are getting out of the industry 
rather than to struggle in it.  What's leftover are the warm bodies.

I for one have learned how to survive as a consultant during both the good 
times and the bad.  Developing a strategy that includes continuous evaluation 
of the market, contingent plans, technical education plans, etc. are 
imperative.  Additionally, a good heart felt prayer does wonders (for those of 
us who are "Believers & Followers").

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Hmmmm...  think I might have to argue this one.  Consultants are usually
paid VERY well, and remain consultants because the money, in the end and
considering all their expenses, is far greater than they would make as an
employee.

Contractors, maybe not, but most probably work through a firm that
provides benefits, so in a lot of cases, probably a break even.

At least a contractor or consultant KNOWS when their last day is, an
employee, in most cases, does not.


-- 


Tammara

On Tue, January 30, 2007 10:37 am, Fisher, Don said:

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When you say "paid the same", how do you define "pay"?  Monetarily,
consultants are usually paid more than employees.  However, considering
that alone as pay requires a very narrow view of compensation.

Consultants pay their own health insurance, pay the employer's share of
F.I.C.A. and medicare, provide their own retirement plans, and make no
money while on vacation or sick.  This is not true for those working for
contracting firms, but those receive considerably less than what is
received by the firm.

Employees, on the other hand, get discounted group health insurance, 401K
plans with employer contributions, vacation pay, sick pay, and some other
things I'm probably forgetting.

If one considers the total compensation package, one will probably
discover employees are generally better compensated than contractors.
That's to say nothing of the reduced risk an employee has versus a
contractor.

Donald R. Fisher, III
Project Manager
RoomStore, Inc.
(804) 784-7600 ext. 2124
dfisher@xxxxxxxxxxxxx

<clip>
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?
<clip>

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