Yes, but the cost is even higher. Overhead, like office space and equipment is usually not counted in as the cost of an employee. Just the stuff that Dave mentioned, benefits, vacations, etc.
The overhead of the PCs, central systems, storage, A/C, fire prevention, backup and archival activity and storage, power, furniture and such is accounted for in a different way. (Usually for tax purposes... :)
That second segment is where cost controls can and often do get very tight indeed. Adding in a one time cost of $X and recurring cost of $Y *is* a big deal, unless it is verifiably revenue neutral.
On Apr 06, 2015, at 11:37 AM, Dave Boettcher <Dave.Boettcher@xxxxxxxxxxxxxxxxx> wrote:
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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