Every company goes through phases...and each industry follows the leader in that field...
So...a major market leader will exist on Contractors because their Head believes that it ensures the best expertise, provides flexibility to match skills to work, and keeps the headcount low which the City like...
Then, new fella (or lass) takes over...(s)he has a major deliverable to cut cost and immediatly aims for reducing the contractor bill...so, kicks out the contractors and recruits permies (many of these will be contractors who have made themselves indespensible and as such cause a hike in Permie salaries...however, their time is limited because the City will get upset about lack of productivity (caused by Permies) and will get nervous about FTE count (generally considered a bad thing as it doesn't allow fluid movement in line with market forces)...
So...new guy, gal takes over and brings back contractors who charge more than before to make up for time lost sitting on the bench waiting for the market to change...also helped by the contractors who went Permie before on a big salary, now commanding even more by returning to being a contractor (normally with a healthy payoff from their Permie role as they are the most expensive Permies so first out the door)...
So basically...be grateful for the way this all works as it sends market rates up...and enjoy the golf!
So...a major market leader will exist on Contractors because their Head believes that it ensures the best expertise, provides flexibility to match skills to work, and keeps the headcount low which the City like...
Then, new fella (or lass) takes over...(s)he has a major deliverable to cut cost and immediatly aims for reducing the contractor bill...so, kicks out the contractors and recruits permies (many of these will be contractors who have made themselves indespensible and as such cause a hike in Permie salaries...however, their time is limited because the City will get upset about lack of productivity (caused by Permies) and will get nervous about FTE count (generally considered a bad thing as it doesn't allow fluid movement in line with market forces)...
So...new guy, gal takes over and brings back contractors who charge more than before to make up for time lost sitting on the bench waiting for the market to change...also helped by the contractors who went Permie before on a big salary, now commanding even more by returning to being a contractor (normally with a healthy payoff from their Permie role as they are the most expensive Permies so first out the door)...
So basically...be grateful for the way this all works as it sends market rates up...and enjoy the golf!



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