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re: How much should I request when moving from contractor to full-time employee?
Posted on 9/22/14 at 6:10 pm to VABuckeye
Posted on 9/22/14 at 6:10 pm to VABuckeye
quote:
Not completely true. They are already paying for him.
True, but his cost to them is currently much higher than it would be if he was contracted directly through the future employer. They are paying a company to pay another company to pay him, thus his current cost to them is greatly inflated.
ETA: I'd guess the ratio of his salary to his cost to them is much greater now, than it would be for them to take him in house, at his same hourly pay.
This post was edited on 9/22/14 at 6:12 pm
1
Posted on 9/22/14 at 6:32 pm to Epic Cajun
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.
A senior director at my company once said, even thought engineers under him make about $100-120K in salary per year, it actually costs the company closer to $200K to employ the person when you tack on all the benefits. Believe it or not, they even look at stuff like cubicle space, laptops, company paid cell phones etc. when considering the overall cost per head count.
A senior director at my company once said, even thought engineers under him make about $100-120K in salary per year, it actually costs the company closer to $200K to employ the person when you tack on all the benefits. Believe it or not, they even look at stuff like cubicle space, laptops, company paid cell phones etc. when considering the overall cost per head count.
This post was edited on 9/22/14 at 6:34 pm
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