On Wed, 18 Jan 2006 11:36:04 CST, "Madison, Marc" said:
Developer $60K/year divided by the adopted 2080 man hours year (this is
the average hours work, 40 hour week, 5 days, etc...) = $28.85/hourly,
That's the *unencumbered* cost.
Now add in the employer cost of health insurance (probably close to $400
or more a month), FICA Medicare, Social Security, workman's comp, pension
plan - right there that's another 25% in addition to that $28.85. Now he's
costing you $35/hour. And we're not done yet....
Then add in the cost of his office - if he has a 10x10 cubicle, and commercial
space rents for $10/square foot/mo, that's another $12,000/year. Now add in
electricity, the cost of administrative assistants and HR people to support it
(unless it's a *small* shop and doesn't have assistants and HR), and so on.
Oh, and if you buy him a new $3,000 workstation every third year, that's another
$1K/year. This shit adds up.
That's why the rule of thumb is the real cost of a technical hire is twice the
Like you said, "many people make that comparison, and don't calculate
the *TOTAL* cost".
That's what I said..;)
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