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Problems: Contracted vs. Permanent Employees
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Problems: Contracted vs. Permanent Employees
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What tpes of problems arise between contract employees and permanent employees? What are the solutions? I have experienced resentment by the permanent employees toward the contractors regarding pay,
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Problems: Contracted vs. Permanent Employees

posted at 1/8/2000 9:04 AM EST
Posts: 1
First: 1/8/2000
Last: 1/8/2000
What tpes of problems arise between contract employees and permanent employees? What are the solutions?
I have experienced resentment by the permanent employees toward the contractors regarding pay, benefits, status. Cultural conflicts are common. Education requirements differ for the two different groups as do quality standards. Anyone else?

Problems: Contracted vs. Permanent Employees

posted at 1/10/2000 9:22 AM EST
Posts: 7
First: 1/10/2000
Last: 2/6/2000
We use to hire students as the contractors for a project. We pay them wages which are not very high, they're involved in company's training list and as a must they have bright career oppotunities in future.They have absolutely different compensation programms(if have at all) but they seem to be happy because they got oppotunity to learn a lot. Also we use a kind of apprenticeship with the help of the permanents.Will it help?

Problems: Contracted vs. Permanent Employees

posted at 1/18/2000 8:06 AM EST
Posts: 1
First: 1/18/2000
Last: 1/18/2000
As a company operating in the Australian automotive industry we also face similar problems with permanent staff resentful of contractors.

In the 'blue collar' sector Unions are seeking restrictions on the use of contractors.

In the 'white collar' occupations we try to offer permanent positions to contractors but with limited success. There is particular resentment in the engineering area.

On initiative of the Federal Goverment is the introduction of new tax rules that will reduce the benefits of being an independent contractor. Contractors currently enjoy tax rates of 36% as opposed to permanent employees who have a top marginal tax rate of 47%.

In summary some of the things that we do are:
- praise and reward permanent staff - eg service awards.
- attempt to minimise the use of contractors. In particular avoid engaging for periods longer than 3 - 6 months
- where possible offer permanent positions.
- in any 'downsizing' exericise contractors are generally the first to be removed - although it does depend on their skills, with specialist contractors often remaining while other non-specialist permanent employees being made redundant.

Look forward to other responses.

Forums » Topic Forums » Recruiting & Staffing » Problems: Contracted vs. Permanent Employees

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