Current compensation conditions

[Jonathan Linowes]

On Nov 22, 2010, at 1:38 PM, mark wrote:

> On Mon, Nov 22, 2010 at 1:23 PM, Michael ODonnell
> <michael.odonnell at comcast.net> wrote:
>> 
>> I might be invited to join a team of developers on what they're calling a
>> "contract" basis (tho it'd actually be a W2 rather than 1099 relationship;
>> hourly, no benefits) and they've asked me to quote a rate.  As it's been
>> a while since I've had to dance this dance I wonder what other people
>> are seeing in the market WRT compensation trends - have the generally
>> depress{ed,ing} economic conditions affected engineering budgets to the
>> extent that it ought be considered a major factor when quoting rates?
> 
> I would look at the various job sites (dice, monster, careerbuilder,
> etc) and look at similar job listings that provide an annual salary
> range (this will be limited, I know) for the same skill set and years
> of experience as the contract you are considering requires.  Then,
> calculate an average salary, divide by 2080 hours, and that becomes
> your starting point for negotiations. If you need insurance or other
> benefits, increase the hourly amount accordingly; e.g., if you have an
> opportunity to acquire heath insurance under COBRA, and the premium is
> $1,200 per month, then (1200 x12) / 2080 = an extra $6.92 added to the
> per-hour rate.  You can scale that up or down depending on your costs
> and on how much you are willing to cover that cost out of the "base"
> rate.

I think that formula assumes you bill for any hours on the project, rather than your dedicated productive ones.
Also, keep in mind the cost of an employee to a business is usually figured to be 1.5 times base salary, or more.


> 
> mark
> 
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