It is believed that more companies are hiring yet in a different way. As one person interviewed put it, some companies could be taking advantage of the current economic situation.
In the past many companies may have needed to hire contractors for three to six months to get a specific job done. Whether it is to replace employees out on leave, or for sporadic jobs. Now some people believe that companies are hiring people ONLY as a contractor in order to save money. This means that employees will no longer receive benefits.
Although if you are hired at a company as a contractor instead of a full time employee usually your co-workers will treat you with just as much respect as they do to each other. However, some hired contractors are finding that it feels as if the company treats them as a second class citizen. You will not be offered the same insurance as other employees. In fact, you will be offered no insurance at all since you are not considered an employee, only a hired contractor.
This change has come about as companies are trying to cut costs wherever they can. With the new Healthcare Reform mandate many companies will continue to hire contractors so that they do not have to pay any health insurance to “contractors.”
Many folks are also in desperate need for a job so they are willing to take a job as a contractor which works in the favor of the companies.