atw: Re: how long is permanent?

  • From: "jobs " <jobs@xxxxxxxxxxxxxxxxxxxx>
  • To: <austechwriter@xxxxxxxxxxxxx>
  • Date: Fri, 20 Aug 2004 17:11:36 +1000

Permanent is 3mths +  !!

Kind Regards

Julian Silverman

Quality People Pty Ltd

ACN # 101 305 775       ABN # 29 946 739 927


=20
259 Jasper Road,
McKinnon,=20
VIC.  3204,=20
Australia
=20
Tel       :  +61(0)3 9557 5000
Fax      :  +61(0)3 9557 2700
Mobile :    0419 39 47 90
e-mail  :   Julian@xxxxxxxxxxxxxxxxxxxx =
<mailto:Julian@xxxxxxxxxxxxxxxxxxxx>=20


-----Original Message-----
From: Terry D [mailto:morgan4four@xxxxxxxxxxxx]
Sent: Friday, August 20, 2004 4:42 PM
To: austechwriter@xxxxxxxxxxxxx
Subject: atw: Re: how long is permanent?


Hi Christine and Michael,

Yes, I know you're right. I used to work as a
contractor for a quango in their IT department. Most
of us were well-paid contractors on hourly rates with
a few staff as managers. But the other staff within
the organisation were on these one- or two-year
contracts at normal salary rates. All of the drawbacks
of being salaried, with all of the negatives of
contracting. I didn't understand why the groups were
treated so differently, apart from it being a sellers
market in IT at the time. :)

Then they outsourced the IT workers - who had the
option of joining the outsourcer on salary or leaving.
(I left.) The outsourcer charged out the time at
roughly the same rates plus a management fee. So the
organisation lost control over the staff who now cost
the organisation more, but with the staff receiving
much less.

I caught up with the organisation's helpdesk manager a
couple of months ago. He said their helpdesk, which
had previously cost them around $120k per year
(probably an underestimate for the three staff) with
staff who would look at all problems, now cost over
$250k (with only two staff) - and if a problem wasn't
specifically listed in the contract, it either wasn't
dealt with or cost more. And they say they outsourced
to spread the risk!!

I haven't applied for any of these one-year jobs, but
the offer I've received is the equivalent of almost
1500 hours' pay on contractor rates. I'm asking them
to get nearer 1600, which I'm considering is fair for
not having to worry about jobs every few months, plus
I won't have to deal with insurance, BAS and greedy
accountants to the same degree. It'll also be a
pleasant change to get paid for public and annual
holidays.

Does anyone know of a formula for equating contractor
and salary rates? I know the standard work year is
considered to be ~1760 hours. I think overheads used
to be ~25%. But the way insurances and superannuation
have gone up, I'm thinking 30% or higher is more
accurate. I guess it also varies depending on state
and payroll taxes.

Cheers,
Terry


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