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Re: Steady_T post# 90347

Monday, 01/24/2011 10:05:26 PM

Monday, January 24, 2011 10:05:26 PM

Post# of 312016
Fair enough. I did not realize you were adding burden. I actually had a great breakdown of these things at a Consulting firm I was at. I am not sure off the top of my head even what "burden" represents and I can't lay my hands easily on that analysis. I know that burden is not the complete picture. I think that burden = benefits plus other direct employee costs. Total cost = Raws cost + burden + overhead, hence the 100% number.

I do know that in several employment situations I was in, Cost as represented by what a person is paid can be roughly doubled to arrive at true cost. In most Consulting environments raw rates range from $40-80/ hour and most companies take great pains to track individual resource costs. I have tracked these costs myself.

In another environment I was in the company chose to take the approach of costing everybody at $100/hour (raw cost = $50). This number was increased as I was leaving to better reflect true costs. That was an engineering office with typical professional people.

I don't get no respect!!!