Oh dear - permie redundancies - this never ends well

[BrilloPad]

Sometimes contractors and permies fall into different budgets so you might be okay.

[SueEllen]

Yes but I find it depends on the reasons for getting rid of permies. If its for financial reasons alone (as I think it is for current client) then the contractors get looked at at some point.

One client the permies were dumped for financial reasons and another went part-time.

They had budgeted for me for a year but decided the permies weren't cost efficient.

Edited to say: The only permie who could do my work was the part timer but he went part-time so he could share looking after his children.

[Support Monkey]

Jeez NLUK mun.....

YMMV but IN MY EXPERIENCE if a client is looking to cut costs by making redundancies then its often not very long before they work out that getting rid of contractors is a good idea too. Surely you can see this?

Not always because sometimes a client will value you staying because you're an easily removable cost at some point in the future.

Worked at several client when they made departments/people redundant, contractors are normally the last people out the door, I find that a contractor is brought in to do a project the permies either can't do or won't do, the pay for the resource is a project cost and so already paid for, if the project continues so does the contractor.

In my case redundancies have always worked in my favour and created more work for me due to decreased permie headcount.

I see it as an opportunity, Every Cloud?

[NotAllThere]

Usually not long before some bean counter notices that, even though they're saving a few pennies shoving the odd permie out the door, that theres a much larger bottom line with the contractors.

Nope. Companies announce a headcount reduction, the stock market likes this, so the share price goes up, and the board get bonuses. However, work must continue, so contractors, who are not part of head count, do rather well out of it.

Seen it many times.

Only when things get really tough do contractors also get reduced - even then, it's after the permies, since contractors can be got rid of at short notice.

[northernladuk]

Nope. Companies announce a headcount reduction, the stock market likes this, so the share price goes up, and the board get bonuses. However, work must continue, so contractors, who are not part of head count, do rather well out of it.

Seen it many times.

Only when things get really tough do contractors also get reduced - even then, it's after the permies, since contractors can be got rid of at short notice.

Absolutely this and the different way permies are budgeted for on both costed and wooden money budgets. Totally different to contractors..... Unless some contractor is daft enough to be working on a BAU budget.

[westtester]

Nope. Companies announce a headcount reduction, the stock market likes this, so the share price goes up, and the board get bonuses. However, work must continue, so contractors, who are not part of head count, do rather well out of it.

Seen it many times.

Only when things get really tough do contractors also get reduced - even then, it's after the permies, since contractors can be got rid of at short notice.

Saw this at Lloyds, they have a regular (every couple of years) sweep out of lifers looking for early retirement and useless bums. Productivity is rarely affected and contractors get to carry on with their projects. We usually get a rate cut instead.

[oracleslave]

sweep out of useless bums.

Doesn't apply in this case as psychocandy is apparently unaffected.

[barrydidit]

PC is right to be worried. There will be fewer forgotten passwords now ergo fewer accounts for him to unlock on a Monday morning.

[original PM]

Indeed - but also to get rid of permits can sometimes take sometime if done properly in terms of consultancy periods etc.

And contractors you can get rid of at the drop of a hat so you may find that nothing happens for 6 months then you all get the finger.

[northernladuk]

PC is right to be worried. There will be fewer forgotten passwords now ergo fewer accounts for him to unlock on a Monday morning.

Yeah but those tapes don't change themselves so he's got a gig for life.