Re: How hard can it be?
"it's very difficult to distinguish between a job-hopping employee and a "serial monogamist" contractor"
It isn't really about how long you stay doing one thing, it's about liability and risk.*
When a company hires a contractor, a large amount of risk is taken up by that contractor (you do know that some companies are slow to pay other companies don't you? Try that with a payroll and see how long you last!).
A huge amount of risk takes the form of being 'cull-able' at a moments notice without any HR/redundancy headaches - that's something a company should pay for isn't it?
Money for contractors also comes out of other budgets than permies and don't get measured as 'headcount'.
It's easier to hire a contractor too, takes a lot less time - also - if you get it wrong you just get rid of them, whereas a permie has *rights*. You can't just get rid of a permie because they are a bit slower than you'd like. Contractors are a vital part of the work-force these days, especially in IT.
Most people I know who are capable of being contractors don't do it usually because they have kids and they like the stability of knowing where their paycheck is coming from.
Although, it has to be said that I have had more job security since I became a contractor than I ever had as a permie, primarily because you *know* the risks and you take steps to minimize them, something most permies don't do.
For example, when redundancies come around - I've seen people who've worked for that firm 15-20 years and believe that they won't be culled and are very surprised/upset/angry when they are. I once got a call on the *way* to my first day on a contract - like an idiot I took the call - and they told me they didn't need me anymore (if I'd walked through the door they would have owed me the notice period at least).
It didn't upset me very much, I went home and followed up on one of the other leads I had, no fuss.
If you are a permie, and you're not familiar with the contracting down side, do you have enough money saved up *that you never touch* to ensure you can live for 6 months without going into debt? Most people don't - but if you are a contractor and you don't have that then you are in for a very rude awakening, because you live and work from day to day. This also has the added benefit/stress of ensuring you stay current. I don't know *any* contractors who are both successful and apathetic.
I'm not suggesting permies are apathetic (I need a better word here) but I have noticed a tendency to 'get comfortable' so to speak.
If you can imagine a sliding scale, 0-100, where 0 is a contractor who puts themselves inside IR35 and plays it *really* safe with expenses etc and 100 is someone who pushes every rule and boundary to leech another 10p from their company sans tax, then guess who HMRC goes for first? So just because a particular contractor is bending every rule in the book doesn't mean they will not pay for that at some point. Me, I probably sit around 30 on that scale - I don't need to take the piss and it's extra risk I don't need - I have enough already :)
*edit: I took so long writing that someone else made the point first :)