From a Clients perspective....

[Bluebird]

How do they compare a "contractor" with a "permie" role?

I've heard talk that a Permie role for say £35k, actually costs a client £50k when all the costs are loaded in [ pension, sick pay, holiday etc ].

Is there a rule fo thumb whereby you can say " for the client £x for a contractor is equivilent ot £y for a permanent member of staff" ?

Cheers

[TykeMerc]

How do they compare a "contractor" with a "permie" role?

I've heard talk that a Permie role for say £35k, actually costs a client £50k when all the costs are loaded in [ pension, sick pay, holiday etc ].

Is there a rule fo thumb whereby you can say " for the client £x for a contractor is equivilent ot £y for a permanent member of staff" ?

Cheers

Having done the analysis for a client, employing a permie on £35k costs appreciably more than £50k in practice. There are an awful lot of variables of course, but in that particular clients case the cost was £72k.

I'm certain that most managers (and HR departments) don't actually appreciate the real cost of hiring permanent staff so trying to draw up a rule of thumb that hirers will apply is tricky and bound to be inaccurate.

[NotAllThere]

In my industry, for a senior, you'd pay £50,000 to £80,000 for a senior, depending on location, for permie, and £500-£800 for a contractor for 5 days a week, several months. For shorter term, part-time, and/or call-off contracts, then £700-£1200.

[malvolio]

To compare contractor to permie very roughly, the permie's annual gross is pretty much 1000 times the contractors hourly rate, assuming a half-decent package.

To employ a permie the overheads value (which is what you're asking about) varies with all sorts of things ranging from work-based social benefits to package additions like bonus to mundane things like office occupancy costs. It can range between 40% and 200%: a good working average is around 120% (and you wouldn't really want to work somewhere where they can get away with 0%...). However quite a lot of those costs will also apply to contractors working on site, hence the suggested rate comparison above.

[tim123]

(and you wouldn't really want to work somewhere where they can get away with 0%...). .

I worked there once. They bought their office furniture from a jumble sale FFS.

It sucked, I was glad to leave.

They went bust a couple of year's later because their products were crap. All that cost saving didn't help them be a better company.

tim