|
|
||||||||||
Glossary The words we heard, and what they mean. Copyright ©2000 Contract Professional Magazine/CPUniverse. All rights reserved. Used by permission Client -- The company that needs the help. Account manager -- The person who works with the client. Recruiter -- The person who works with "the talent." The talent -- That would be you. Bench -- Just like in basketball. You're on the staffing company's team and get sent to clients where and when you're needed. You enjoy job security, but in return give up rate. One estimate is that your pay is 40 percent less than it would be if you took the risk of working on contract. A bench contractor can be salaried or hourly. Core competency -- Something staffing services firms aim for. Wall Street likes it too. They've identified the most important part of their business, and are good at it. Companies like to use the word "pure" to emphasize their commitment to their core competency. Commoditize -- Treating contractors and consultants like soap or cars, just another item to be sold. Companies that do this have sometimes been called "body shops," at least by their competitors. A la carte -- When a firm offers numerous services, and you can choose the ones that appeal to you. Advocacy -- The help the recruiter gives the contractor. Black box transaction -- what happens when there isn't any advocacy. Disintermediated -- Describes a job-matching transaction that takes place by computer, with the human element eliminated. Reintermediated -- The human touch is reintroduced. Back office -- All that behind-the-scenes paperwork: invoices, taxes, insurance. VMP -- Vendor management program, also known as vendor on premise. A client tires of dealing with multiple contractors, staffing firms, and subcontractors and hires one company to manage job requisitions, invoices, and management. Job boards -- Web sites that list jobs. Job matching -- No frills, just a list of jobs that suit your skills. Umbrella services -- A term that isn't popular with many people in the industry, but it sticks because there isn't a well-known alternative. It refers to companies that offer administrative and benefits services. Many of the companies that offer these services do not do staffing. Could also be called a back-office company. Full service -- The whole works: staffing, back office, career counseling, benefits, and more. Multiple layering -- This can happen if, for instance, you are great at C++ and are with a niche firm that in turn fills a job requisition from another staffing firm, that passes you along to another staffing company...you get the picture. Each firm involved receives a percentage of the markup. The space -- Usually talked about as "The Space," with a sense of reverence, to refer to the market a company is trying to reach. Solutions company -- It takes control of a project, designing and implementing it, rather than just staffing one already in place. Staff augmentation company -- Providing the right person fast is the main mission. W-2 -- You are paid hourly, usually weekly or biweekly, and delegate the payroll function to an IT services company. 1099 -- You are a sole proprietor but have not incorporated your business. Many staffing companies and clients are wary of working with you. They fear an audit by the IRS and a challenge to your status as an independent employee that could result in penalties. Incorporated -- You are a corporation, and take responsibility for payroll functions, insurance, and workman's compensation. Employer of record -- The for-the-record holder of the W-2 status. Section 1706 -- This provision of the 1986 Tax Reform Act singles out the IT industry and is a source of concern to employers because of IRS penalties incurred if they are determined to be your employer of record. Corp-to-corp -- Corporation to corporation. Refers to transactions between an independent incorporated contractor and the client or IT services firm handling payroll. Passthrough -- A company designated as employer of record to manage W-2 status of contractors for a company. Your income and withholding pass through the company, but the arrangement is purely financial. The fee for the service is sometimes paid by the client, sometimes by the contractor. Main Story Michael Nadeau, Andrea Haynes, and Lynn Geiger are CP editors. Contract Professional/CPUniverse, Dec. 21, 2000. |
|||||||||||
