If the plan is to layoff thousands over the next few years, it wouldn't surprise me if those same positions were later filled by contractors. Target will get virtually the same amount of work done, and will have no healthcare costs, no benefits, no time off to pay.
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72905, for one, I was talking about what company spends per head and not what you get. Was there an employer in between ? I worked in IT. The cheapest contractor I ever had was $62 an hour. The expensive ones are around 200 an hour. Most of them have standardized at around $70 an hour. Thats minimum $124k-400k(max) a year, compared to about 75k target pays entry level it positions. I am not in for an argument. Maybe the middle man employer gets a cut and that's where maybe you made a loss . I still hire people. And I don't contract out any long term needs. Short term scale ups and likes, yes I get contractors.
Dear Anonymous72892, you are totally clueless. Contractors make less than their Target counterparts. The point that I was making is that the leading cost of any corporation is healthcare, and if you can avoid that cost, which is increasing by double-digits every year, corporations save tons of money. I was a procurement analyst contractor at Target and made far less than my Target employee counterpart.
Get your facts right - really? Contractors are more expensive, but they get more done. They also make a lot more than employees even when you factor the benefits. Target is WAY too top heavy.
Also contractors don't show up on headcount for wall street. It is all about stock price
I hear ya. I was talking about the "skilled workforce"(like the engineers, buyers, IT etc).
The last time they did 500 jobs (in 2009 i guess ?), DC was most impacted I think. But i doubt if they kept on like that for long. I am sure they hired people back. I have seen atleast one come back into the HQ about a year later.
Get your facts straight.
For one, they have already outsourced what they can.
Then again, I don't contract out a position unless it is a short term need. because contractors(local) are always expensive compared to employees(Irrespective of race).
I am sure the VP positions cannot be contracted to offshore locations.
I had a 5 year stint with Target in the past. I loved it there. Had to move because of family priorities and effing 2 ft snow every 2 weeks. Now that's not exactly what I would call a lean organization. I have worked with companies who work with a fifth of the workforce to get the same level of work done. Everyone @ Target is busy, with meetings ofcourse. I doubt if they would offshore/outsource that.
That is what they are doing in the DC When people leave they said they will just fill the position with temps, it is cheaper
and easier to get rid of them