Why do companies prefer employees?

[SueEllen]

The official rules may be one thing, but from where I've been sitting the last 10 years or so on contracts, well... I feel like a stranger in a strange land; although that might be because I don't speak the language?

Learn some Urdu or Hindi and practise on them.

You will end up with a quiet office when they think you can understand what they are saying.

[stek]

Learn some Urdu or Hindi and practise on them.

You will end up with a quiet office when they think you can understand what they are saying.

My mate taught me a sentence in Hindi, I still remember it 'Vo bolta hai' I forgot what it means (I talk to him, I think) - but I practised it perfectly intonation wise and said it at work at the tea making oasis as it was called. All the Indian lads looked at me panic-stricken!

[beaker]

Recently I have had to decline a few lucrative offers, based solely on the fact that I would have to become an employee of a given company.
Normally, I wouldn't mind but it was a really cool project and I began to wonder what sort of perceptions prevent contractors and little Ltd from getting work.
I think is the notion of control - it seems many managers expect that they can bend an employee to do whatever in however many hours it takes. I think the only difference is that the Ltd would bill for the extra hours whereas employees often spend a few stressful month, fail to achieve the goals and quit or are let go. Here the issue lies with middle management - who have to deal with limited budgets and other formal constraints.

Do you think that after being approached by a large organisation, it makes any sense to try and convince them to take you on as a business rather than an employee?
Has anyone had any success with this, what arguments did you use? Were agencies of any use (potentially a higher margin for them)?

I think you're missing the point... if the hiring manager is looking for a permanent employee, there's not much point trying to convince them otherwise - unless you can do it cheaper.

After completing a contract I've often been asked to join (at half to 2/3rds the gross pay) and politely declined and offered to take on another project on a contract basis. You win some you lose some and move on.

[mos]

I have been taken on as a contractor for permanent job. The rate was £100 lower than my normal rate but the project was very interesting. It is likely that the company will be trying constantly to convert you to permanent.

[northernladuk]

I have been taken on as a contractor for permanent job. The rate was £100 lower than my normal rate but the project was very interesting. It is likely that the company will be trying constantly to convert you to permanent.

So you are through a brolly or are claiming yourself inside IR35 and doing your books to suit??

[mos]

So you are through a brolly or are claiming yourself inside IR35 and doing your books to suit??

Great point - to specify, this job was initially advertised as permanent, anticipating continuous flow of project work as well as some BAU. Suitable candidate for permanent position was not found and because the project "A" was very urgent - the company got persuaded to take on contractor - on the basis of clearly defined project work (A).

My contract was checked for IR35 compliance. Hope that the fact that the job was initially advertised as permanent will not be questioned by HMRC.

I gather from your earlier posts that you know about this stuff should I be worried?