6/12 This is prob. been asked many times already, but what is the
standard scale for converting from hourly/contractor to yearly/
employee? Have choice btwn stock option or bonus structure but
I think i will take bonus structure... -sky
\_ Hourly->Yearly is multiply by 2000, but contractor->employee is
much harder.
\_ hourly->yearly is correct. but for contractor->employee i
usually like to do hourly * 1000. so if you're making
$120/hr, that would be $240,000 annual. but if you want to be an
employee, it would give around $120,000 or maybe slightly more.
-uctt
\_ Wow! Are you saying that a company will pay twice as much
to a contractor as opposed to an employee? Why? I do realize
to a contractor as opposed to an employee?
\_ no, he's saying that contractors have to pay more of their
money to the gubmint as taxes
Why? I do realize
that as a contractor you have to pay self-employment
tax, health insurance, retirement benefits, vacation, etc.
When I account for all this it seems to me that contractors
should get about 1.4--1.5 times as much as salaried employees.
How do you come up with your x2 number. Thanks. -emin
\_ yes, they will pay twice as much for a contractor over a
salaried employee. why?
1. usually contractors are better skilled
\_ Hahahahhahahhhahaa.. cough.. gasp... wheeze....
\_ contrary to popular belief, not everyone
(other than you) is stupid. every day
our group is looked at to make sure that
we are adding value to the client's
projects. and every day they realize
that for every one of our guys we do the
work of at least 3 of their employees.
we work longer hours and more
importantly, we're more productive.
that's why they can justify to their
C-levels the amount of money that is
being spent. start your own company
and maybe you'll learn. -uctt
\_ Sounding pretty defensive. I'm sure
each of you is a tremendous value-add
and >insert buzzwords 4 through 16 here<
Yep. You're worth any 10 normal men!
2. you can get them quickly. if you need 2 highly skilled
java EJB developers with 2+ years of java experience,
it will take you at least 2 months to interview 10+
people and find 2 good ones and have them start. with
contractors, you can have 2 in your office in 1-2
weeks.
3. if you only need them for 3-6 months, you can get them
to agree to that. try telling a salaried employee that
"your salary is $120k but you may have to get fired in
3 months cuz we won't need you then".
4. they usually do not give them stock, they usually can
make them work, and they can usually get rid of them
relatively painlessly whenever they want to.
short answer? flexibility. that flexibility is worth
paying 2x. the 2x comes from experience of hiring
contractors, hiring employees, and hiring
contractors->employees. -uctt
\_ uctt, are you a contractor? what do you do?
\_ contract.
\_ No wonder he thinks contractors are more skilled.
\_ full time employee at my own startup now. never contracted in my
life. but i did spent some time in big 5 consulting managing
various e-Commerce projects and our team of consultants from big
5 was always much better than the employees in the client company
(that's why they were paying us $275-$350/hr to be there) -uctt
\_ No. They were paying that so management could have someone
to blame when it all falls to shit. No one pays you more
because you're more skilled. They don't have a basis to
judge your skill level.
\_ of course that's a big part of it. we'll take
the blame if it all "falls to shit". it's called
taking RESPONSIBILITY and i'll take the
responsiblity for a project in exchange for the
big bucks that they have to pay us. i've
met morons in consulting. i've met a lot more
morons that work as full time employees for the
client. -uctt
\_ You know why that is, right? The companies
that don't need your expertise don't hire
you. If there's a better staff in house then
likely they'll go with that. Granted,
sometimes management does stupid things
anyway, but I bet this helps explain your
experiences. --dim
\_ Holy cow! I find myself agreeing 100% with
dim. Hell has just frozen over.
\_ I think it's a great idea to hire
consultants when the current staff
is better. What's the matter with
you?!? |