4 ms·
It's hard to tell without more information, but here are some general rules of thumb. Most companies have a multiplier based on salary on how much an employee
by kxyvr 8y ago
It's hard to tell without more information, but here are some general rules of thumb. Most companies have a multiplier based on salary on how much an employee really costs. Small, efficient companies have a multiplier a little over 2. Large organizations and the government tend to have a multiplier at a little over 3. The overhead covers everything from benefits such as health and 401k to keeping the lights on to paying for secretarial staff and management. Running a business is a team. That said, these numbers don't really include true profit, so it's important to factor that in as well.
Now, say we assume a multiplier of 2.1, that puts the upper bound at $78/hr. You're never going to make that because it means the owner is not making their profit and not that many companies are that efficient. If their multiplier was 3.1, it puts the bound at $53/hr, but again that still doesn't take into account profit. As such, my off the cuff guess would be somewhere between $30-60/hr.
And, to be sure, this shouldn't imply anything about the morality of that decision of salary. However, it has been helpful for me to think about salaries and multipliers when bidding on contracts because it tells me how much a company is willing to pay.