Tuesday, October 31, 2006

Pimps worse than actual pimps, maybe slightly less violence.

I am a contractor.

A contractor is someone who is perceived to have mad skillz that some company requires for a short period of time. If said company needs them for a long time, they will train up their employees, or hire a new employee with those skills.

When a company decides it has a mega computery project that it wants to get done, it brings in a heap of contractors and relocates a number of it's employees to that project. The contractors bring the skills, the employees learn and then maintain it in the long term.

Getting a whole stack of contractors in is quite easy for administrative purposes. No super, no unions, no probity checks, no internal then external application process. Ring a dude up, get him in the next day.

What companies have found though, if they force all their contractors to go through one company, then they just pay one company instead of 50. That company then divides up the moola. That company, often, can't be bothered with payroll tax, insurances, etc so force contractors to belong to littler companies to sort that stuff out.

So everyone takes their cut.
Not a problem, because I still get the rate I want, and everyone sorts out the rest behind the scenes. I get a daily rate (ie, a flat rate for everyday I work) and they have their cut on top of that rate.

When the industry is hot, I say jump, they say sir yes sir, when the industry is not, I'm beggin and pleadin they kick and laugh. It's all fun and games.

What I'm finding though, is that the inbetween companies (pimps we call them) are starting to run the show. On the last contract I was in, the was no work for me to do, I finished it all. I knew it, the project manager knew it and I was bored. My contract enddate was coming up so it was all good - except my pimp went above the project member and called the big boss and had my contract extended. Twice.

Me working gets him money.
To hell with whether I want to work there or whether they have any work.

With my current job, only a couple of companies have the rights to supply contractors and so they are making heaps. As much as I like Brisbane, I wouldn't mind heading back home to work. Also, I'm bored and they want to get me to train an internal person to do my job. It's smart of them and I support that. The other day my pimps (different lot from the example above) scheduled a meeting with my team leader and asked her to make me 'indespensible' so I could remain working here, so they could continue getting money.

I find that superwrong. They are supposed to provide a very simple service, not run people's lives.

Some of these companies make thousands every day off some contractors, purely because they brokered the deal in the first place and divide some cash up at the end of the month. People don't talk about their earnings very often, so it's hard to figure out how much these guys are making. Years ago, a mate of mine was working as an employee to one of these companies and was on about $57k a year. Except he was being charged out at $1400 a day. He was bringing in approximately $350,000 a year and actually receiving a 7th of that. The margin on contractors is lesser, but I can't seem to find out what kind of figures these guys are acting so desperately over.

I feel like learning how to be a project manager just to get to a position where I can get rid of the pimps. They really are getting an obscene amount of money for just making a couple of phone calls.

3 Comments:

At 8:27 PM, Blogger Jen said...

Wow, I never realised there was that side of the industry.

My pimps seems to be rather content to brush me off every time I call for work so clearly they must be making their fast cash off someone else, cause it surely isn't me.

It's quite mean (and unethical?) that they make you stay in a role which is essentially not required for the sake of making money. Wouldn't it be easier to find you a new position and just make money off the new people (if the industry is hot at the moment)? At least then you can be happy too?

I want to be a project manager too, I like the idea of making loads of cash for making phonecalls. Maybe we could start "Adam and Jen's Ethical Pimps" and pimp out contractors to places they want to work out, and in positions they will be happy in. Then we an make loads of cash and make people happy.

 
At 9:20 AM, Blogger Deb said...

the bf is an i.t ninja too... he gets really frustrated at his work because he says they keep taking the big projects off him and giving them to the contractors instead - they say that he has 'too much intelectual property' when it comes to his ninjery stuff. he's pissed and wants to find a new position. I sometimes wonder if he would be better off as a contractor himself but now im not so sure?

btw, where is 'home'??

 
At 2:26 PM, Blogger Adam said...

Thanks kids.

Deb, from the way I read your bf's situation, the very best thing he could do is become a contractor or at the very least look for a new job. Basically, he's good at what he does, so his company wants to keep him in that spot. It's good for them, it sucks for him. They are being lazy, instead of training people up so that a few people could do his job, they are just restricting the very people they need to keep.

Contracting is good and bad. For me, it's good 95% of the time because I like to get around and I get bored of working with the same people after 6 months to a year. The way to contract well is to have a very firm idea of what's best for you and don't budge. Pimps will always try and make you budge (so they get a bigger cut) but he should always win out in the end if he stays firm.... but this always comes with experience. Pimps always try and be your buddy and it's against the human condition to be firm against someone who is trying to be your friend.

Melbourne is home for lil ol Adam.

Lulu, your advice is always ripper. I've thought about being a recruiter as well, money for nothing right? I know it can be hard, especially when you don't have many clients, which is why they try such tactics, but it can't be that hard because there are millions of them.

The pimps I'm talking about aren't even recruiters, it's my co Ninjas that get me in, the pimps just exist because the large companies just want to do one invoice, not 25.

D'Jen, I think you and I need to start our own Multipurpose Company Of Awesomeness. Pimps are crap because they try and make their whole living out of it. We can be way ethical and groovy if it's just a small part of our companies income. So many good business ideas!

 

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