Overhead usually also includes the cost of providing benefits, health insurance etc. As well as unemployment insurance, vacations and so on.
The cost of office space is, in my opinion, a minor thing compared to benefits.
My 2 cents,
Dave B
If you really want to do something, you'll find a way; if you don't, you'll find an excuse.
-----Original Message-----
From: RPG400-L [mailto:rpg400-l-bounces@xxxxxxxxxxxx] On Behalf Of John Yeung
Sent: Saturday, April 04, 2015 12:32 AM
To: RPG programming on the IBM i (AS/400 and iSeries)
Subject: Re: RDi vs SEU
On Fri, Apr 3, 2015 at 5:01 PM, Jon Paris <jon.paris@xxxxxxxxxxxxxx> wrote:
Most people figure that the actual cost of an employee runs somewhere
between 40 and 100% of their actual salary. So someone who makes $50K
a year would actually cost between
$70 and $100K.
I was wondering about your "$100K including overheads". I guess this explains it, sort of. I mean, part of your explanation is backwards, but I guess the gist is: The salary is only a part of the total cost of a programmer; there are also "overheads" (presumably to pay for the space they take up, the energy they use, maintenance on their equipment, etc.). So the salary would be somewhere between 40% and 100% of their total cost. Or, to turn it around, the total cost would be between 100% and 250% of their salary.
So someone who makes $50K per year is, at your estimate, costing their employer somewhere between $50K and $125K per year.
John Y.
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