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This is important information even for non-contractors. I was interviewing for a position several years ago. They had zero software people at the time (the las

This is important information even for non-contractors. I was interviewing for a position several years ago. They had zero software people at the time (the last guy quit) and one of the hardware engineers in frustration told me they were contracting some company (2 guys in barn) for like $50k a month. Since I would be replacing them I aimed high, but still well below them. Company didn't even question my salary. If I'm not mistaken they gave me "manager" title simply to put my pay in the right bracket, but that also meant my bonus was higher than most the other engineers. Know what a company is willing to pay for work, contract or not.

snowwrestler 4y ago
I will just say that it’s never 1:1 because contractors come with way less benefit and legal baggage than employees. I’ve had a CFO tell me he’s willing to pay 2x-3x salary to get the same work from contractors.
- adrian_b 4y ago
  Also any contractor has to request 2x-3x more than when receiving a salary, to cover for extra expenses and taxes and for extra risks (time when no contract is obtained).
- phkahler 4y ago
  >> I’ve had a CFO tell me he’s willing to pay 2x-3x salary I took that into account. I made between 100k and 200k per year vs the other guys 600k for the same work, which I arguably did better since it was my specialty. The company really was being taken for a ride by the contractors (if what I was told was true).
  - joshspankit 4y ago
    Companies being taken for a ride by contractors: 100% happens. I’ve seen it first hand from the head offices. In both cases it was “we’re going with product X because it’s supposed to be the best. Does anyone here have expertise in it? No? Good thing the vendor has trusted partners.” One contracting company had the audacity to fly in two carloads of “experts” before the system was even set up. They lingered and deflected even the most basic questions about the product.
- granshaw 4y ago
  Hell, less baggage _in general_ … they’re not gonna get offended easily, have adamant work styles, wanna just play politics etc They just come in and get shit done
atonse 4y ago
Now that I've been on the other side (hiring contractors as a company exec) after many years being a contractor, I kind of see it differently. Unfortunately a lot of this stuff (seeing someone's worth) is often gut feeling. We have had a couple contractors bill us on the higher side like you but in their case, I knew they were worth it. Even though it was a lot of money for us, we saw it as a "will they bring that much value and more?" I knew that they wouldn't just code, they would meaningfully move the company's foundational technology forward, mentor the team, etc. And they did exactly that. If we did have revenue pressure, they'd be the first ones whose hours we'd cut down (but they're so talented they'd find more work in a few hours). But it wasn't hard to justify getting them on board. I had one devops firm quote me $250/hr but quite honestly, I haven't worked with them yet. So it was a very easy no (it was more likely they would've put a random person worth 1/3 of that on our project). But for the right person (someone who performs at a very high level), for the right period of time (these folks get a lot done quickly), even that rate is palatable to companies.

snowwrestler 4y ago

I will just say that it’s never 1:1 because contractors come with way less benefit and legal baggage than employees. I’ve had a CFO tell me he’s willing to pay 2x-3x salary to get the same work from contractors.

adrian_b 4y ago
Also any contractor has to request 2x-3x more than when receiving a salary, to cover for extra expenses and taxes and for extra risks (time when no contract is obtained).
phkahler 4y ago
>> I’ve had a CFO tell me he’s willing to pay 2x-3x salary I took that into account. I made between 100k and 200k per year vs the other guys 600k for the same work, which I arguably did better since it was my specialty. The company really was being taken for a ride by the contractors (if what I was told was true).
- joshspankit 4y ago
  Companies being taken for a ride by contractors: 100% happens. I’ve seen it first hand from the head offices. In both cases it was “we’re going with product X because it’s supposed to be the best. Does anyone here have expertise in it? No? Good thing the vendor has trusted partners.” One contracting company had the audacity to fly in two carloads of “experts” before the system was even set up. They lingered and deflected even the most basic questions about the product.
granshaw 4y ago
Hell, less baggage _in general_ … they’re not gonna get offended easily, have adamant work styles, wanna just play politics etc They just come in and get shit done

atonse 4y ago

Now that I've been on the other side (hiring contractors as a company exec) after many years being a contractor, I kind of see it differently. Unfortunately a lot of this stuff (seeing someone's worth) is often gut feeling. We have had a couple contractors bill us on the higher side like you but in their case, I knew they were worth it. Even though it was a lot of money for us, we saw it as a "will they bring that much value and more?" I knew that they wouldn't just code, they would meaningfully move the company's foundational technology forward, mentor the team, etc. And they did exactly that. If we did have revenue pressure, they'd be the first ones whose hours we'd cut down (but they're so talented they'd find more work in a few hours). But it wasn't hard to justify getting them on board. I had one devops firm quote me $250/hr but quite honestly, I haven't worked with them yet. So it was a very easy no (it was more likely they would've put a random person worth 1/3 of that on our project). But for the right person (someone who performs at a very high level), for the right period of time (these folks get a lot done quickly), even that rate is palatable to companies.