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. $$$

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.

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.

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

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

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