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Salary Question for OT O&G Engineers
Posted on 3/18/15 at 5:59 pm
Posted on 3/18/15 at 5:59 pm
I'm thinking about asking for a raise soon and I'm trying to determine a realistic target $ amount. My 1st step is to determine what percentage of my billing rate my hourly wage should be.
I've heard that your wage should be anywhere from 1/3 to 1/2 of your billable rate. Is this the norm for O&G engineering consulting?
I ask because while my billing rate has gone up, my wage has not and I'm not even close to the 1/3 rule right now.
I've heard that your wage should be anywhere from 1/3 to 1/2 of your billable rate. Is this the norm for O&G engineering consulting?
I ask because while my billing rate has gone up, my wage has not and I'm not even close to the 1/3 rule right now.
This post was edited on 3/18/15 at 6:05 pm
10
Posted on 3/18/15 at 6:00 pm to MadeInMexico
1/3 to the employee
1/3 to insurance/overhead
1/3 to the owners.
*Subject to vary.
1/3 to insurance/overhead
1/3 to the owners.
*Subject to vary.
This post was edited on 3/18/15 at 6:02 pm
Posted on 3/18/15 at 6:02 pm to xXLSUXx
quote:
1/3 to the employee
1/3 to insurance/overhead
1/3 to the owners.
At the least.
Does the 1/3 to the employee include 401k matching and the portion of health insurance premiums paid by the employer?
Posted on 3/18/15 at 6:05 pm to MadeInMexico
It's honestly just up to the owners. Some firms have multiple owners and take more than 1/3rd to make up their portion. Some have a single owner with many employees, so they take less than 1/3. It's just a guideline. If you think you're underpaid, get offers from other companies and see if they'll match.
Posted on 3/18/15 at 6:08 pm to xXLSUXx
quote:
O&G Engineers
quote:
get offers from other companies
good luck with $44 oil
Posted on 3/18/15 at 6:08 pm to MadeInMexico
Oil and gas may be a different animal, but in general, I don't really see a correlation between what your company charges for your services and what they pay you...
in my mind, you should be paid the market rate for engineers with your level of experience in similar roles...
in my mind, you should be paid the market rate for engineers with your level of experience in similar roles...
Posted on 3/18/15 at 6:09 pm to MadeInMexico
I was used to seeing my billable rate as twice my pay (as a designer). It varies big time. Look at your years of experience, look at average compensation for your level of experience, and then start putting your resumé out there. Then ask for a raise. If it doesn't work, then hopefully you've gotten a few bites from companies willing to compensate better.
Posted on 3/18/15 at 6:11 pm to MadeInMexico
Have fun doing that...I would wait a year before asking fwiw, be thankful you have a job
This post was edited on 3/18/15 at 6:12 pm
Posted on 3/18/15 at 6:11 pm to Spankum
quote:
in my mind, you should be paid the market rate for engineers with your level of experience in similar roles
This. Do you not know what other people make? It's not politically correct to talk salary but you gotta have a round about idea of what others are getting paid.
Posted on 3/18/15 at 6:12 pm to 8thyearsenior
Yeah. That plays into it as well. If your job security is more volatile, it'll be reflected in how much they're willing to pay you.
It depends on what your company offers. I know smaller firms that are flourishing despite the current oil market.
It depends on what your company offers. I know smaller firms that are flourishing despite the current oil market.
Posted on 3/18/15 at 6:12 pm to MadeInMexico
I don't know if this is the best time to ask for a raise. Especially as a consultant. The only engineers I've seen let go so far are consultants.
Posted on 3/18/15 at 6:15 pm to KG6
The firm I work for is still hiring. Haven't seen a slow down at all. People are still getting really good raises where I work.
Posted on 3/18/15 at 6:16 pm to LSUEEAlum
quote:
Have fun doing that...I would wait a year before asking fwiw, be thankful you have a job
Trust me I am thankful for the job.
quote:
This. Do you not know what other people make? It's not politically correct to talk salary but you gotta have a round about idea of what others are getting paid.
That's the thing, I don't even really have a ballpark but when I heard the 1/3 rule it got me thinking about it.
Posted on 3/18/15 at 6:29 pm to MadeInMexico
Compare to competitive market, not what they charge for you.
Posted on 3/18/15 at 7:24 pm to MadeInMexico
Talk to your HR rep and see what the typical raise is. Then, ask for something in that range. Express to your boss that you need more compensation. Understand that your bosses hands may be tied given $45 oil. But trust me, it doesn't hurt to ask.
Posted on 3/18/15 at 7:31 pm to LSUEEAlum
Is this upstream? Companies I work with aren't slowing down, but only because they have deepwater rig contracts for the next year. They have uncertainty going into 2016 and are definitely cutting fat. One company uses a lot of consultants. Only people I've seen released have been the consultants. Not a lot of people, but a lot of cutting hours and definitely no raises going around.
Posted on 3/18/15 at 7:35 pm to MadeInMexico
The base pay rate for an Engineer is typically 25% of their billable rate.
This post was edited on 3/18/15 at 7:35 pm
Posted on 3/18/15 at 7:39 pm to MadeInMexico
Your company will bill you out at a rate as high as they can get, but it doesn't mean you're actually worth a salary increase.
And like someone said, you have to have an idea what your peers are making. In the old days, it wasn't an issue because the pay between comparable people wasn't skewed like it is today. Today's rates are determined on the market when the person is hired so an individual could make 20K more than you just on when each of you were hired; and not dependent upon either experience level.
And like someone said, you have to have an idea what your peers are making. In the old days, it wasn't an issue because the pay between comparable people wasn't skewed like it is today. Today's rates are determined on the market when the person is hired so an individual could make 20K more than you just on when each of you were hired; and not dependent upon either experience level.
This post was edited on 3/18/15 at 7:44 pm
Posted on 3/18/15 at 7:44 pm to KG6
I work for an design engineering firm in Baton Rouge. I'm personally doing work for a chemical company but we also aren't slowing down on work for our refinery clients either. To th OP what is your discipline and how many years experience do you have? I'm guessing you work for a firm like myself? I can probably ask around my company to see what someone like you should be making if you answer those above questions. If you are a EE I can tell you right now what you should be making.
Posted on 3/18/15 at 8:33 pm to xXLSUXx
What is an O&G Engineer ? There are PE Petroleum Engineering graduates-but never hard of an O&G Engineer ?
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