hjg7715
Well-known member
Not necessarily, there are a lot of different overhead costs and sometimes fluff added to the billable rate from one company to the next and a lot of firms tend to have standard billable rates that are adjusted periodically based on the market. So while there is some correlation between the billable rate and position/salary of the employee, very few firms from my experience use a direct multiplier of the employee's salary.I don't think that is surprising. All companies, no matter how magnanimous are a business. The billable rates are almost always a direct correlation of your take-home pay times some multiplier. One raises, the other raises as a result. They won't just raise your pay but eat the cost internally, just doesn't make business sense.
Now I would definitely agree that companies are going to find ways to account for any raises given to employees. I once received a 16.5% raise during an annual review for a previous firm I worked and it was sold to me that I was really valued and it was the biggest raise that anyone in the company had ever received. However, I was hired with salary a lot lower than I was worth and within the two years I worked for the firm prior to getting this significant raise I became solely responsible for the work for one of our services that previously 1 project manager, 1 technician and 2 separate consultants were contributing.