working for a third party

[2dye4]

In my part of the US there is an increasing trend of
companies hiring their engineering and tech staff through
a contracting company. The problem is that there are very
few of these contracting companies serving the industry.
And they are getting all the contracts.
This has a notable destructive effect on competition for
jobs from the tech person side.
There is a positive feedback to this cycle. As contracting
gains a foothold with more payroll pricing power and
thus lower rates for industry then more industry will hire
this way and thus reinforce the trend.

We will be forced to compete ourselves into this mess I am
afraid.

 

[Slugger926]

Well, I bet a lot of these engineers do not have Proffesional Licenses, and the contracting companies do not have a Certificate of Authorization from the State Boards to offer engineering to other companies.

Just report the contractors and their companies to the Board.

 

[ewh]

It depends on the industry and the skill set. Agencies handling mechanical and aerospace type jobs are very numerous. When I learn through the grapevine what companies are hiring contractors, I pick the agency that I want to submit me. The rates in aerospace today that the client companies pay are nearly obscene, and companies often "clean house" for this reason. They refuse to pay those rates for mediocre workers, and keep the best and brightest.

 

[BillPSU]

I am working as a contractor right now and I am being paid substantially above my normal salary expectations. Do I have benifits? My employment agency pays the social security, unemployment, and workman's comp. I pay for everything else. Do I have job security? No, but what is your job security? Do I have a chance at employment? Yes, and it is better than coming in cold from an outside source. The other choice is unemployment which I have already experienced and want no part of at this time.

 

[moltenmetal]

How do you get engineers to become a commodity?

Voila!

Working for an engineering temp agency is far equivalent to being your own boss.

Better make sure you make these people pay for the "flexibility" you're offering. If you're doing so in terms of a higher rate of pay once benefits are figured in, fantastic- knock yourself out. But this "flexibility" comes at a cost- if employers have a zero cost rather than merely a low cost of downsizing, expect them to do it more rapidly than ever before- and expect the next economic downturn to be a very hurtful experience indeed!

 

[GregLocock]

I enjoyed contracting. I find it interesting that there is a huge kudos around here attached to being your own boss, but that if you pay someone else to do the paperwork suddenly you become the cause of all that is wrong in engineering.



Cheers

Greg Locock

Please see FAQ731-376 for tips on how to make the best use of Eng-Tips.

 

[2dye4]

I have to buy my own insurance. Am getting paid well below
experience level.
If I complain they will tell me don't let the door hit
your butt on the way out.
Maybe it is my region of the country.
I just think it is alarming that this contract agency can
seem to get 50% of the jobs in this area greatly limiting
my ability to find other work.

 

[GregLocock]

So, set up your own agency.

Cheers

Greg Locock

Please see FAQ731-376 for tips on how to make the best use of Eng-Tips.

 

[ewh]

Or go to where the work is. That is the biggest downside of contracting for me. I like going home at night.