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Is it just me or are agencies loading up on commitment-free permalancers rather than hiring permanent staff? Is this a cost-saving measure, or things are even more project-based than they appear?

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Permalanced at a large NYC agency for over a year. Made so much money (love me some overtime) that benefits become a non-issue. (I don’t have dependents though)

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This is exactly why most people at Vayner were laid off last year

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Yup. I’m pretty sure I’m being catfished for a high salary ‘long-term’ contract where they just want you to set their process up and then dump you. I would make in 4 months on my long term contract as I make in a year with my current salary though...

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Doesn't make sense though because sure they save money on benefits but permalancers have to be paid overtime (which probably ends up costing more than benefits in some cases)

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Yes

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Yeah it’s the not having to pay benefits thing that I assumed was the reasoning behind this, as well as freelance rates dropping due to market saturation, making permalance staff effectively salaried without the benefits 🧐

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SA1: yeah, sucks to not have that security, but the pay doesn’t suck

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lots more agency contract work. partly also because clients are not committing to work and procurement departments love renegioting terms every 6 months now.

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Most of the projects ending up with 3 to 6 months. Clients are not interested to carry forward with such high rate of agencies rather they prefer to get it done in house or some offshore shop. 3 to 6 months of design enough for them to get wheel running for a year. So it's hard for agencies to hire and pay full time along with their wishes , ambitions and frustration when project changes.

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Make sure your putting away enough for taxes. Uncle Sam will come calling and that tax bill sucks

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It’s happening in corporate too. 1 year contracts. No benefits. $$$

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Freelancers and employers need to be careful of misclassification. Many times a contract worker is not an independent contractor. Which makes you eligible for benefits.

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Both. It’s also easier to identify the immediate financial impact on a project when an out of scope request is made or the project runs longer than originally intended because freelancers are a hard cost to the agency. So, it can be pretty expensive for the client if they don’t adhere to the terms in the engagement.

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Commitment free permalancers? I'd call it commitment free agencies.

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Both but this time it feels driven by more project less real AOR scopes

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