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You are comparing outsourced contractors to salaried employees. The low end of typical contract rates here is, IME, ~$100/hr. Also, as a rule of thumb, a salar
by WalterSear 6y ago
You are comparing outsourced contractors to salaried employees. The low end of typical contract rates here is, IME, ~$100/hr.
Also, as a rule of thumb, a salaried employee cost twice their salary after benefits and other costs are factored in. Given the median salary I recall from a recent placement company, this is in the region of $300k.
If the reduced physical presence of remote work reduces the value that salaried employees can bring, contracting out work will become more attractive.
- Tade0 6y agoAlso, as a rule of thumb, a salaried employee cost twice their salary after benefits and other costs are factored in. What kind of benefits? Total cost for the employer is seriously around $300k? I find that hard to believe.
- charwalker 6y ago3x is a wide margin. I remember seeing numbers at my last contract job that suggested it was close to 1.75x and was using that number in the process of getting hired directly. I knew the companies costs to hire could be under that 1.75x value but still be a pay bump for me especially as I didn't have any benefits through the contractor saving them costs with no return to me. For the contracting agency the value of my labor to a third party is how they make money. Seemed simple enough to me but not a racket I wanted to bounce around in.
- sinsterizme 6y agoAccording to this source [0] the factor is closer to 1.25x - 1.4x or 1.18x - 1.26x depending on which source you listen to. [0] https://beebole.com/blog/how-to-calculate-the-real-cost-of-an-employee/ https://beebole.com/blog/how-to-calculate-the-real-cost-of-a...