My employer and I are currently discussing options for me to continue working when we begin full-timing next month. I was hoping to possibly stay on at 50-75% because I would still receive partial benefits (medical,dental) although I would lose my employer contributions to my retirement account. They are not sure they can do this unless they found somebody willing to replace me part-time (unlikely). So they are considering the possibility of hiring me on an hourly basis. Is there a rule of thumb as far as what I should ask for if they pay me per hour? Does it seem reasonable to add to my salary the amount they currently contribute to medical, dental, insurance, retirement, and paid-time off and figure out what it comes to on an hourly basis. Do I try and add extra for overhead (internet access, computer upgrades, regular backups, etc....) or is that pushing it? Any advice is greatly appreciated.
Thanks, Colleen
-- Edited by pierreandcolleen at 05:33, 2008-05-31
Tim & Robyn said
04:06 AM May 29, 2008
Hi Colleen, You probably need to hear from somebody who is actually doing this on the road... Having said that, I would certainly start high and negotiate down. I work fulltime from home (not on the road yet - sigh) and my employer pays for my home office expenses (up to $50/month for internet access and all of the cost for a VoIP office telephone), as well as other miscellaneous non-travel expenses. That's a lot cheaper than what it would cost them to provide an office space for me somewhere. Telecommuting to the workplace is getting to be very common. I can't see anything wrong with factoring in the value of health insurance either when computing an hourly rate... Once you agree on an hourly rate, that would be a fixed number... Employer-paid health coverage on the other hand goes up and up every year (ever noticed how your contributions from your paycheck go up every year, copays go up, and the coverage isn't quite as good as it was last year?). It's all negotiable, and you'll never know what you could get unless you ask.
-- Edited by Tim & Robyn at 05:07, 2008-05-29
thebearII said
08:34 AM May 29, 2008
Colleen,
Try www.salary.com
There's lots of good information regarding salary rates by area and different job classifications. And tips for negotiating salary. Don't know if they have anything aimed at road warriors/ work kampers but some of the contract employee tips may help.
I currently work as an "at will" contract employee and negotiated a higher salary because I didn't require health benefits. Those are covered by my retirement package from my first career.
Another source for wage info is here: http://www.gpo.gov/davisbacon/ It's a little difficult to use but has wage rates that include markup for overhead such as benefit packages. These are the wage rates used by companies wanting to do business with the federal government. It makes for a good guideline in negotiations.
Like Tim & Robyn said start high and negotiate down. They must like your work otherwise they wouldn't be discussing a flexible work situation. In today's job market it's easy to find someone to do a job. I just saw an article where a company posted an ad for a job and recieved over 5000 applicants....within the first week. They were overwhelmed by the response and resubmitted the ad with much tougher requirements and still recieved over a 1000 resonses.
Good luck....
Froggi said
04:50 PM May 29, 2008
Colleen, it's been a while (long while) since I was in the same position. In those days the rule of thumb was to double your hourly rate in order to cover your self-employment tax (you'll be paying both halves of your social security), cover the federal witholding, general overhead, etc.
I did this at three separate times with three separate employers and they still felt they were saving money at twice the hourly rate. Just be sure to keep receipts for everything and get a good accountant for your taxes.
Oh, I was a computer specialist....various positions.
Tylersamma said
07:25 PM May 29, 2008
My employer tripled my salary on an hourly basis, but without benefits (insurance, vacation,etc.) I was able to continue to contribute to my 401K during this time. This was a fairly short termed arrangement while continuing to train my replacement, about 6 months.
-- Edited by Tylersamma at 20:28, 2008-05-29
pierreandcolleen said
04:32 AM May 31, 2008
Thank you all for your input. It is very much appreciated.
My employer and I are currently discussing options for me to continue working when we begin full-timing next month. I was hoping to possibly stay on at 50-75% because I would still receive partial benefits (medical,dental) although I would lose my employer contributions to my retirement account. They are not sure they can do this unless they found somebody willing to replace me part-time (unlikely). So they are considering the possibility of hiring me on an hourly basis. Is there a rule of thumb as far as what I should ask for if they pay me per hour? Does it seem reasonable to add to my salary the amount they currently contribute to medical, dental, insurance, retirement, and paid-time off and figure out what it comes to on an hourly basis. Do I try and add extra for overhead (internet access, computer upgrades, regular backups, etc....) or is that pushing it?
Any advice is greatly appreciated.
Thanks,
Colleen
-- Edited by pierreandcolleen at 05:33, 2008-05-31
You probably need to hear from somebody who is actually doing this on the road... Having said that, I would certainly start high and negotiate down. I work fulltime from home (not on the road yet - sigh) and my employer pays for my home office expenses (up to $50/month for internet access and all of the cost for a VoIP office telephone), as well as other miscellaneous non-travel expenses. That's a lot cheaper than what it would cost them to provide an office space for me somewhere. Telecommuting to the workplace is getting to be very common. I can't see anything wrong with factoring in the value of health insurance either when computing an hourly rate... Once you agree on an hourly rate, that would be a fixed number... Employer-paid health coverage on the other hand goes up and up every year (ever noticed how your contributions from your paycheck go up every year, copays go up, and the coverage isn't quite as good as it was last year?). It's all negotiable, and you'll never know what you could get unless you ask.
-- Edited by Tim & Robyn at 05:07, 2008-05-29
Try www.salary.com
There's lots of good information regarding salary rates by area and different job classifications. And tips for negotiating salary. Don't know if they have anything aimed at road warriors/ work kampers but some of the contract employee tips may help.
I currently work as an "at will" contract employee and negotiated a higher salary because I didn't require health benefits. Those are covered by my retirement package from my first career.
Another source for wage info is here:
http://www.gpo.gov/davisbacon/
It's a little difficult to use but has wage rates that include markup for overhead such as benefit packages. These are the wage rates used by companies wanting to do business with the federal government. It makes for a good guideline in negotiations.
Like Tim & Robyn said start high and negotiate down. They must like your work otherwise they wouldn't be discussing a flexible work situation. In today's job market it's easy to find someone to do a job. I just saw an article where a company posted an ad for a job and recieved over 5000 applicants....within the first week. They were overwhelmed by the response and resubmitted the ad with much tougher requirements and still recieved over a 1000 resonses.
Good luck....
I did this at three separate times with three separate employers and they still felt they were saving money at twice the hourly rate. Just be sure to keep receipts for everything and get a good accountant for your taxes.
Oh, I was a computer specialist....various positions.
-- Edited by Tylersamma at 20:28, 2008-05-29
-C