So if I work for Netflix full time regular employee $488k TC Working as a contractor, $170k TC. So it is like putting myself at a 67% off discount? #tc #nflx #netflix
It's not 30-40%. It's more like 10%. If I really cared I'd lookup the latest contractor I just signed but, it's not nearly the number you say it is.
different companies say different things... I have a friend who actually operates an agency, and he said, if a contractor is getting $80 / hr W2, the agency is getting $120 / hr. (50% markup), but that company has to pay FICA... and usually no benefits whatsoever. But I have heard in Silicon Valley, the agency "makes a few bucks" every hour from you. But of course, they always say "a few bucks" as a "technique to tell you don't worry, we are not eating up much of you". I remember going to Good Guys long time ago, and their Flash was like $189 and Amazon sold it for $102. I ask them if they can give a 10% discount or something because the difference between $102 and $189 is so big. The guy said, "Then why don't you buy it there? For $189, we are making one buck from it."
Lol it’s cute you think it’s 10%. I used to contract for Teksystems and had a friend internally working there who told me what I was being charged the client company by tek.
I actually used to hire and manage SDE (outside Amazon) for a big defense company. This is not 2nd hand knowledge from a friend of a friend of a friend. I signed the contracts and authorized the billing from our engineering budget. 10% is accurate from my experience as well. Tek was one of those agencies..
Yeh ..I mean, I signed the contract, but hey you have a friend! I'll show myself out
You can never get close to FAANG level TC by contracting. If you convert that $488K TC into an hourly rate that would look insane to anyone who needs to approve it. That's just how it is.
but... I do know some open source framework guys charging $200 / hr back in 2013 to Apple Inc. Also, I know someone working for Pharm, charging $300 / hr.
There are always exceptions
Not quite as you’re getting charged to Netflix at a higher rate by the staffing/recruiting agency. TEKSystems, Aerotek etc all add 30-40% on top of your hourly quoted value they give you as their commission. The company still gets you at a discount, without incurring benefits and health insurance costs. The middle man takes the hire/ fire risk and you make less. It’s a win win for corporations and a loss for you. However, contracting like that is a great way to get diverse experience and a name brand company on your resume and use it as a stepping stone.
the middle man takes the hire / fire risk? What kind of risk is that. It is like picking up money on the street. I work, they sit there and collect money. I wouldn't say picking money up on the street is some kind of "risk".