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My experience with this is that contract is usually better paid than perm, so when it comes time to convert to perm I am not willing to take the pay cut so I go contract somewhere else, or remain with them as a repeat contractor.

HR usually stops my clients from hiring me perm at 2X the rate they pay their full time employees, despite the strong demonstration of competence that I’ve shown over the last few months.

My clients are usually unable to make permanent employment with them more appealing than repeat contracting with them.