Why do companies do contract positions? Are they too cheap?

Question

I'd like to know why companies go through with contract positions. You work there for two or three months then you're out of a job, most of these go through staffing agencies. I just don't see the point. Who could possibly want to work two months then be out of a job. Why can't companies afford ($12 an hour) when they are a multi million dolalr company in the first place.

Answer 1

Everyone, including companies, try to get the best value for the money they spend.  That $12 an hour employee is probably costing another $5 - $6 in benefits.  They are still providing employment for the person from the agency.

Individuals do a similar thing.  They do their own plumbing, electric repair, painting, etc instead of hiring a contractor, or the hire a cheap handy man who charges much less for "cash only".

Answer 2

it beats not working for 2 months and then still being out of a job - I've gotten my last 4 permanent jobs starting as a  temp. I've been with my current company 6+ yrs including temp time and got promoted 4 yrs ago, now make 100k

Answer 3

contract positions even out staffing requirments