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Yeah, it's a bad rule of thumb. It might at least be in the right ballpark for someone making a near median salary of say $50K, but non-salary costs don't scale
by mandelbrotwurst 6y ago
Yeah, it's a bad rule of thumb. It might at least be in the right ballpark for someone making a near median salary of say $50K, but non-salary costs don't scale even close to 1:1 with salary increases.
- bryanrasmussen 6y agothe rule of two is for if it makes financial sense to be a consultant, if you can make 2 times per hour as a consultant that you make as a full-time employee, then it might be sensible for you to become a consultant. It exists basically so you don't look at the crazy money you're being offered and think hell yes, when in reality you are only being offered a 30% raise. The less important part of the rule of thumb is for businesses to determine if it makes sense to have someone as a consultant or a full-time employee. But whoever is doing hiring should be able to figure that out for themselves because they should know how much the employee actually costs - but hey, even they might need help sometimes.