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re: How much should I request when moving from contractor to full-time employee?
Posted on 9/23/14 at 9:17 am to saintforlife1
Posted on 9/23/14 at 9:17 am to saintforlife1
quote:
Let's use the numbers the OP used. He said the end client (the Fortune 500 company) is paying $190K for his postion, which turns out to be: $190,000/(40*52) = ~$91 per hour. But if they hire him full time, do you think they will offer him an annual salary of $190K? I think not. Because they still have to pay for his vacation days, health/dental/life insurance, 401(K) etc now that he is a full-time employee. If they offer him a salary of $190K, all his benefits will be on top of that making him much to expensive to hire as a full-time employee than as a contractor.
I don't believe he wants what the company is paying for him, he just wants more than what his current hourly wage is (which is substantially less than what the company is currently paying for him). As I said, if he were going from contracting to the company to salary, your premise would be correct, but that isn't the case. He's essentially eliminating two middle men, which were raising his cost to the company dramatically (I'd assume).
Posted on 9/23/14 at 10:15 am to Epic Cajun
quote:
I don't believe he wants what the company is paying for him, he just wants more than what his current hourly wage is (which is substantially less than what the company is currently paying for him). As I said, if he were going from contracting to the company to salary, your premise would be correct, but that isn't the case. He's essentially eliminating two middle men, which were raising his cost to the company dramatically (I'd assume).
This. I am eliminating 2 middlemen. I assume total they are doing around a 30 to 45% markup on my hourly. By eliminating those two middlemen, I am curious what is reasonable to ask for since the hiring company wants to know.
I was thinking about padding my current rate by 12% so it's not to scary for the hiring company.
Let's say I make 150k now, market rate is 162k, I'm gonna ask for 170k. That gives me a little wiggle room.
I am assuming markup for these two middlemen is around 30% total. That would put my cost at around $195k for the company paying for me. Even with the typical 20k for benefits plus my increase ask, I am still under what they are paying these two guys at $190k.
This post was edited on 9/23/14 at 10:25 am
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