The shocking real reason why companies hire IT contractors revealed

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Real Reason IT Contractors are Hired
Real Reason IT Contractors are Hired - you'll be surprised

Real Reason for Hiring IT Contractors

This article, on the real reason for hiring IT Contractors, was posted as comments after one of our articles

Two Real Reasons

Did you know, I bet you didn’t, that there are not one but two reasons they hire us.

The first one, evasion of employment law, you know about, and presumably embrace it for the extra tenner it nets you.

The other one is more subtle.

IT Contractors on Balance Sheet

If you were an employee then your wages – such that they are – are counted as a liability.

Contract Rate Cut
Contract Rate Cut by Client

They have to pay your wages, so it shows up on the balance sheet as a cost.

When they hire contractors we are counted as an investment.

Our ‘wages’, if you will, then show up as an asset.

This allows them to transfer, for each and every one of us, around a quarter of million quid per year from loss into profit.

Cutting Your Pay

It must be a real dilemma for your bosses when they cut your pay.

On the one hand they are dipping in to your pocket in order to line their own, and this, for them is a good thing, particularly as they – your bosses – can be fairly certain that enough of you will sh*t yourselves and the thought of being out of work and sign up to anything (except what you are entitled to, naturally).

On the other hand, by cutting your pay, it makes the balance sheet look like investments have shrunk, with all the negative implications viz-a-viz the executive bonus.

You should be more concerned about your own money than ‘other peoples’, but, if you’re unable to support yourself while out of a precious job, whatever else can you do?

So, there you have it, the real reason for hiring IT Contractors.

It makes you think!

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