Any insight as to whether more contractors will be getting the axe as well? I know it has been mentioned that contractors may replace employees in some aspects (you know, because they’re cheaper and unworthy of Exxon benefits🙄), but wasn’t sure if that was down the line or near future.
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This thread is a prime example of how employees view contractors, high cost & over-valued, without understanding that "removing that cost" affects people. I think what one of the commenters was trying to illucidate the contacting companies rates should be evaluated & renegotiated. But who cares right? Let's continue to treat them like third class citizens. Empathy isn't just for employees.
Why are you Comparing what the contractors take home pay is versus an employee? Exxonmobil PAYS the company costs. Plain and simple, to exxonmobil, contractor is more expensive than employee most of the time.
It doesnt matter if the contractor doesnt make the full $250k. ExxonMobil still is paying that.
@pbu
If the contractor COSTS $250k ($120/hr), that does not reflect their pay rate. Its some percentage substantially lower and all profit to the vendor. A 25% margin has the contractor making $187k/yr with no benefits vs an employed engineer at $180k + benefits.
Seems like this post may have been more directed toward contractors that were on the road to employment, as opposed to consultant type contractors. You know, the ones who were too blind to see the false hope of being hired and undoubtedly get the shaft.
One poster mentioned exemption from employee reviews as a perk. How about the review we go through daily, where we are called contractor instead of a name, and are so untrustworthy that we can only come in one door to ensure that we get our temperature taken by security? Since you know, contractors get fevers and Exxon employees are too good for that. (And yes, I actually am thankful at least 90% of the site is checked.. since the site is populated by 90% of contractors... who actually have to go to work instead of the employees... who stay home, save their gas money, and “work” from their couch.)
Love,
A bitter contractor that wants to simultaneously cry and vomit at some of the salaries that have been listed 😭
- S. My contracting company probably gets paid double what I actually see, and they don’t even know how to answer emails. Or pay their employees for the Labor Day holiday.
Contractors don’t have to deal with yearly rankings. What would that be worth to you? Many of them were with the company for 10+ years.
This is not correct. Assuming a contractor costs $250k/yr ($120/hr), the equivalent salaried employee would have to be making ~180k (assuming 1.4x take home pay as true cost of an employee). There are few engineers at the company making >180k that can be replaced by a contractor.
Including all of the benefits in being an employee, the individual Contractor does NOT make more. Their pay rate is substantially lower than the individuals pay rate. Contractor Vendors have been getting $ hand over fist while EM gladly pays them.
Not sure about additional cuts to Contractors, specifically EMIT. Heard that they've cut >75% as of end of September.
The union trades in Clinton (annandale) would love to be treated as well as the contractors local 102 and 475 . They beat the employees to the cafeteria maybe 5.5 hours a day out of them ... Hey YL give them a dam pay increase already what a sin settle this already. Over two years without a contract really . can't wait for the Eii christmas party woo hoo!!!!!!
Looking at some of the contractors we work with, they charge $120~200/hr (this is for safety work with some employees in low cost countries). That's $250~400k/yr. Yeah, no way contractors make less than an employee.
Contractors are much cheaper than employees, much better, and it is a way to go....You pay for top notch engineer or geologist $200/hr or max $250. This is all, no insurance, no 401k, pension, training, nothing. They dont complain, they do their work. And yes, they dont ask the second day like employees do what is my next job, why my ranking is so low, etc. I think XOM will hire contractors in future until oil is stable. You can lay them off anytime and they dont question and cry like employees.
Contractors can be expensive. As an employee, I worked along side contractors (we called them consultants). In my area (Drilling) the top contractor was getting north of $2500/ day. I alway thought that was a lot of money (albeit, I live in a small world). I am pretty sure that exceeded most of what EM engineers were getting at the time. However, these highly paid contractors had specialize operational skills working mega international projects.
Some companies have the rule (especially with unions) that the contractors has to be canned before the ax dropping to regular employees, otherwise it will become a loophole.
Contractors usually negotiate higher pay to cover benefits, so they aren’t necessarily cheaper than employees. Most of the ones I worked with were quite expensive.
Ask yourself if an EM employee can do your job with minimal-moderate hand over. There’s your answer.
Contractors are rarely cheaper than an employee. You pay the staffing company a premium for flexible staff.
I heard that for contractors to stay on, the approval has to come from VP level It's going to be a rare manager that will want to present to a VP why a contractor should be kept. Therefore, it's likely only contractors with very highly specialized skill sets will be kept.