3 ms·
If you're working on a service organization, your rate is defined by: Billable hour = salary cost + benefits + G&A + overhead Where: - Salary cost = gross sa
by guiambros 10y ago
If you're working on a service organization, your rate is defined by:
Billable hour = salary cost + benefits + G&A + overhead
Where:
- Salary cost = gross salary / 1800 (or whatever # hours/yr your company uses)
- Benefits = proportional cost of vacation, 401K, etc
- G&A = General expenses and admin (office, equipment, free food, etc)
- Overhead = amount needed to cover everyone else who isn't billable (HR, Finance, IT, assistants, President, etc)
If you do the math, you'll see $200-300 is a standard rate in high cost markets (NYC, SFO) for someone with a six-digit figure. More junior positions are ~$150, while very senior roles (Partner, Director, etc) would be in the $300-500 range.