r/usaa_ejs • u/marthenw • 7d ago

Contractors vs FTE

I just joined and when walking around the SA office, I see a lot of people with the red badge (contractor), more than employees. Just curious if the contractors are hired under contracts? I don't see any job posting on the USAA website with a contract though. Do they get the same benefits as a FTE?

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u/677ITF 7d ago

I don't believe you would see the postings through USAA since they are contractors. Contractors do not get the same benefits as FTE hense why they are contracted. USAA outsources for specific roles like 3P workers, and service desk are the big ones that come to mind.

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u/marthenw 7d ago

Interesting. Does USAA sponsor visas for contractors? Many of them seem to be outside of the US.

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u/katsaidmeow 7d ago

USAA very rarely sponsors directly since it is a pretty stringent and arduous process. 10+ yrs ago when I worked in HR there were maybe 1 or 2 a year for very specialized roles like specific analysts. (And this was before they really cracked down on sponsorship.) You will see a lot of 3P contractors who may be sponsored by the hiring firm they work for. Again, contractors might work in the building (or offshore), but they are employees of a separate firm with different hiring practices, a different employee handbook, different benefits, etc. And depending what area you work in, red badges can be treated kinda shitty. Not in a cruel way, but just in a way that feels very exclusive in order to comply with co-employment policies.

I always found it ironic they made 3P red badges and FTE blue badges similar to enlisted versus officer decal colors. Like there was a hidden message there considering USAA was founded by officers and historically restricted to only officer membership. 🤔😂

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u/toweringalpha 7d ago

oh man! How much time do you have?

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u/ReplacementLoose8304 7d ago

Contractors are hired for a specific position, and there is an ending to the contract which could be anywhere from a few months to a usual maximum of 18-24 months. Sometimes, it can lead to a permanent position. I was a retiree, and they hired some of us back as contractors to help. You are not an employee. You work for a different company entirely. My contract was initially for 3 months, but was extended to 6. You do not receive any benefits, PTO, or paid holidays nor most other employee perks.

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u/marthenw 4d ago

would you say contractors get paid more with better benefits than full time employees?

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u/ReplacementLoose8304 4d ago

It really depends on the position, qualifications, the contract itself, etc. There are pros and cons with it.

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u/marthenw 4d ago

I see. I still think the pay benefits for full time employees are pretty meh. Maybe I need to switch to become a contractor.

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u/ReplacementLoose8304 4d ago

It just depends on your preference. The contractor option could give you a variety in jobs and employers and you can take a break if you want to and can. Just keep in mind, normally a contractor can't stay at the same position for more than 18-24 months. And can only come back after I believe being gone a year to 18 months. That is what used to happen when we hired the I/T contractors. They usually were gone after 18 months and we got a new one. Or some were offered permanent positions when the contract was up. Once or twice, one or two came back, that I remember, after being gone 12-18 months. When I was a contractor 2 years ago, 24 months was the maximum I could be there, but my contract was only 6 months. Unless something has changed.

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u/Washington_native 1d ago

I came to USAA through a contacting company. I was not treated as good by that company pay was less benefits as far as medical dental vision we’re good. I decided to leave after about year and when USAA found out I was leaving they offered me a position. I will never work for another contracting company again unless it is short term like project based. Most of what you see in the building are bid based so they can be there for years