Lets say a decent permie rate for Excel work is 60k
Contractors are more efficient as they don’t have all the 1-1 reviews and career planning bullshit, and are paid a risk premium for being easily sackable so lets say 100k pa or 400 per day. (In this case, via a decent agency the client would probably pay less than 500 per day.)
A good contractor can work most of the year so can approach the 100k total, less holidays (no sick time – everyone know contractors are never sick).
Employment law in most countries is completely bolloxed up meaning the party that wants a flexible skilled resource and the person willing to provide that flexibility and shoulder some operational risk have to jump through all kinds on hoops to achieve their joint aim. Hence agencies and a whole other bunch of buggeration.
Worse than agencies are the body shops, these ‘consultancies’ exploit dysfunctional employment rules to weasel into these flexible requirement gaps.
In the above example, they will take on the ‘permie’ (on a fixed term contract normally) on the 60k, or most likely take a more junior person on say 40k. They then pimp them out to the client for 1,200 per day. They can do this because the only thing more fooked up than employment law is modern procurement practice and the cursed ‘preferred supplier’ scam.
If they can’t sucker someone into a fake permie role (of course they promise to pay you even when you are not charged out to a client, but that won’t last long before you are dumped), then they will try and sucker a contractor in by offering slightly better than the 40k pa, like 200-250 a day instead.
A normal agency adds no more than 20% to the workers rate, these clowns are adding 300% or more. I won’t mention any names, the evidence is clear on the jobsites.
It seems that a few of those missing 400 per day Excel contractor roles are now 200 per day roles so some body shop can make their kilo of flesh, and blood. (Bear in mind the cost to the client has increased in this scenario – and the quality of service has generally declined). But procurement are happy as they have less 2 pound supplier credit checks to do. The banks aren’t generally dumb enough to fall for this but government departments lap it up.
(Sadly this pointless bodyshop approach is the standard in Switzerland, hence why I am looking Europe wide (had a sniff of a Dublin job last week – Guinness at Keoghs every night? – tempting!!))
Are you consulting in the public sector carrying an astronomical, unjustifiable bodyshop overhead?
Have you seen these sort of job ads?