I got into a discussion the other day where I tried to prove why underpaying is a good idea.
The obvious things, you save money. The lower the day rate the less you spend.
The people you get are of lower quality. This is also good. They make your permanent staff look better than they really are.
The fact they are not great also means they are more likely to stay around meaning fewer cases of having to replace them.
They aren’t aware how bad your company is, ergo fewer complaints to deal with.
Frankly I knew by this point I had lost the argument. This was further compounded when my adversary pointed out there were better ways to save money such as switching to platform recruitment workflows that have included the onboarding and management needed, SAAS delivered and PAYG. Like 6progmembers do.
They tend to use the savings to pay their freelancers a bit more, helping to retain them and in the longer run saving more money through quality work.