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Come on SOS. Lets hit $10
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What is the average salary of a Senior 1?
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Mute button horror stories.
What does this even mean?!
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You make higher margin on senior hours while the same senior people can do also junior level work (but not the other way around) since they're already "trained". One of a variety of reasons depending on individual business cases.
“A company makes money off hours billed” - not usually. Sounds like you’re working to a reconciliable model. An agency traditionally makes money off the hours that are AGREED to be billed, not the actuals. The classic way agencies have always increased profit is to reduce labor costs (while still billing the client the agreed fee). So in other words, juniorizing resources in order to increase the margin.
I’m not sure what you don’t get. Layoffs happen because the agency needs to cut expenses. Here is typically a target number they are trying to cut. Juniors may get cut if there are mid levels who can pick up the slack. And clients may not be attached to or even know juniors. You think your puny salary does not matter but the math to get to that magical number on savings has to do with more than just salary- the cost of having a person as an employee, ie benefits and overhead, is equal no matter the seniority. A body costs more than just the salary.
But really its because you won’t be missed other than by the mid level who has to now do your job.
😂😂😂
AKA: the c-suite who does fuck all will always protect themselves first.
Also, for hr reasons, you need to show that you’re not discriminatory— so you can’t only lay off older people for instance. That’s why layoffs tend to affect different ages, genders, etc (at least that’s how it’s supposed to be)
This is the most likely reason why you’d see a less senior or junior employee as part of a layoff. Also, believe it or not, sometimes it’s kindness. If management has asked to reduce headcount regardless of salary, the manager making the decision can cut a junior feeling confident that the person can easily get another job where the older employee may never gain another staff position, ever. One other factor: more senior employees earn more and often have longer tenure. That adds up to significant severance cost.
I would never lay off a talented junior. But there are some juniors who need a lot of coaching and attention. If things got tight, they’d have to go because I know I won’t have the resources to support them.
So many variables. Look at what the client needs. Differs by agency, client, department, Mercury retrograde and ...
Also, who’s making the decisions? Chances are, it’s senior people with relationships to other senior people- who they’ll find ways to save if they can.
It makes it look like you haven’t just fired the people over 40. #obfuscation