Can someone help me make sense out of this:
Chief Financial Officer Michael Bell said last month that State Street aims to replace outside consultants with full-time staff
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I work for an Oil and Gas company and I've randomly stumbled upon your thread (we've had monthly layoffs since 2014) - over last 10 years we've hired using a 3:1 ratio, so for every one employee, we'd hire three contractors.
Often they are more expensive (even with all the savings you outlined) but they are very easy to let go and you typically get a ton of value from they as they work like crazy to keep extending their contract.
All of them lack loyalty and do not 'live the brand', if you are a high growth company, you really need to be in that frame of mind, that's hard to pull off with contractors. I've had some good ones, many sucked as well. Hard to say. I think what your execs are doing has more to do with freeing up the cash flow than anything else, that's typically it....
I agree with you discarded worker. Many companies are hiring contractors since it saves them from paying benefits. It isn't just State Street either. I have a good friend that has been working at JP Morgan as a contractor for about 2 years. He will probably never get hired permanently.
He had to make a mistake no way is State Street going to replace a temp,contract worker with a fulltime worker. Temps , Contract workers have saved State Street millions by not having to pay the following
Health Insurance, Social security tax, Unemployment tax, Workmen comp tax
For the last 12 years State Street has laid off at least 4,500 workers . And any new hires are temps ,contract workers.
I known people who been working there at least 4 years a temp.
It seems to me like many companies only hire contractors so that they can save on benefits. The only way this would be advantageous for State Street is if they are going to be paid a much lower salary than what they are paying the consultants. Just ask anyone who is currently looking for work. Many of the open jobs are contract positions. A company can hire you for anywhere from 3 to 6 months or maybe a little longer and not make any promises that you will be hired as a full-time employee.