[quote=AN][quote=SK in CV]The $200K and $400/hr is an outlier. But in the space I worked, the $150K/$210 per hour is not. It’s the norm. And the $210/hr will cost well in excess of $270K a year to the customer. I don’t know what space you work in, but it’s not the only one out there.[/quote]
$150k is not out of the norm but $210/hr is. $210/hr is over $400k/year. How can $150k/yr be average yet $210/yr is also average. Unless you’re talking about very specialize skills that doesn’t need full time support.
I know my space is not the only space out there. But I know enough software engineers across various industries to know what’s the average going rate. My space is one of the highest paying space for a software engineer and have the highest demand.[/quote]
Because those numbers are talking about two different things. One is what the employee is paid, and the other is what the employer charges for the employee time. In professional services industries, employees never get paid what their employers charge for their services. It ranges anywhere from 2x your hourly pay to 5x your hourly pay. In IT consulting, that number is typically 2.5x. So if you’re paid $50 an hour, they charge $125/hr for your time. So to hire you out for a full year, it would cost the customer about $250K for the year. But that rarely happens. In contract IT consulting, 75% utilization is typical. (Unlike law or accounting, where >100% utilization isn’t uncommon, particularly for younger employees.)
