Tech Consultant companies keeps a huge difference between employee salary (which they give to employee working at client site) and employee billing (which they charge from clients for respective employee) to make profits. How much they should ethically pass on to their employees in terms of percentage of billing amount per hour? #consulting #consultant #tcs #cognizant #infosys #accenture #deloitte #aws #pwc #capgemini #kpmg #mckinsey #bain #boozallenhamilton #mercer #bcg #slalomconsulting #sap #ibm
It's business same as others It is like profit sharing with employees and any company can be questioned about it
I was paid ~35/hr as a junior. The client was billed 180/hr. My company could have easily paid me 20% more and kept the lights on no problem.
Around 30-40% would be fair. You need to take into account employee utilization, sg&a, cost of capital, and profit. It adds up.
Typical rule of thumb I've heard is that employees cost around 50% more than their salary (cost of office space, employer side of employment taxes, benefits including retirement contributions, insurance, PTO, etc). If that's true, half your options are financially impossible. Once you take into account roles that are geared towards finding work, billing, etc rather than just doing the work, it'd be surprising if you got anything other than your lowest option.
Exactly. Add the utilization, overhead and profit and you are in the 30% range.
I do agree, but if someone who is getting paid 50 per hr and being billed 250 per hour. Considering by your suggestion of 1.5 %, its still 75 per hr as compared to 250 per hour. Don't you think that's a really wide one.
For short term management consulting type projects 33% of bill rate, but for long term tech projects 50-55% of bill rate. Finding clients and deploying people on projects is a very tedious process requiring a large team of sales, recruiting and other support teams.
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Between 50-65% generally. In some cases between 65-70. Edit: I thought u asked how much they pass to employees. “Ethically “? That question is based on the premise that those sweat shops have any ethics. They don’t.
Agreed but still I was curious to know what blind thinks about the percentage that should be ethically passed on. That's why I asked "how much they should". Thank you for your vote though.