If I went as a contactor in the UK id expect 2x to 3x when compared to a FTE at a similar grade.
I'd personally even take it one step further: those who are payed the least need benefits the most. By relegating this work to temporary workers you're doing exactly the opposite: cutting away the privileges that the full-time employees have. Not to just one employee, but anyone who's ever going to fill out that position.
A trip to the doctor would not make a dent in a senior engineer's pocket (regardless of the insurance), but a janitor could not afford a trip to the doctor in the first place. This could work in a country with good social programs to fall back on, but it has catastrophic consequences in the US.
It's unreasonable to expect one company to make big strides in this area when all it does it put them at a competitive disadvantage to their peers. Google is already mandating a $15/hour minimum wage on all contracted-out workers, plus some minimums for sick days, which is much better than most other companies (which tend not to have requirements on contracted out employees in their contracts with staffing firms at all).
> What does it matter? Is there a US cultural/social nuance that I'm missing?
I'm not familiar enough with Google's specific practices to reach a conclusion about that.
As such, there's almost always an intermediate taking a cut of the actual rate, even if you're a contractor to the staffing agency.
Then you've got agency relationships, like where I work at now. I'm a salaried, full time employee for the agency I work for and I make about the regional median for my role. But I'm contracted out to clients (including Google) and bill hourly. Depending on the client and the specific roles I'm billing as for a given project, an hour of my time gets billed out anywhere from 2x - 6x what my fully loaded hourly cost is to my employer (salary + benefits + payroll taxes). So the cost to the client is certainly in line with your expectations, but it doesn't come back to me.
[1] You don't see this as frequently at the SME end of the market for many reasons, not least of which is the deliberate inefficiency and increased costs of such a structure.
[2] https://www.reuters.com/article/businesspropicks-us-findlaw-...
Though that link is just showing how incompetent MS Hr was - when it happened I recall having a good laugh with some Colleagues who work in HR/IR
In my case, the equivalent job at Google definitely carried more responsibilities, and they were paid more. However, I believe Google paid my consulting company more than the FTE salary for each of us, with my company taking their cut off the top (at least, that's what I heard).
In short, it's complicated
At least in the US that’s often not how it works. The agency takes a big cut and the contractor probably makes less than an FTE. In my company must contractors are super eager to go full time given the opportunity.
It's one thing to outsource security, another to outsource people who work as part of the organization: admins, executive assistants, developers, recruiters etc..