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Hello ZSers,
I have been shortlisted for AC role and my HR discussion is scheduled next week.
1. Need some insights on the maximum and minimum ctc (fixed and variable) that can be offered for 3 yoe (all relevant) . My current ctc is 7.2 (6.5 fixed) . Tech stack - Big data and AWS developer.
2. Is there any joining bonus. If yes , what should be the ask.
Any inputs will be very helpful for me to go with my expectations to the HR. Thanks!
ZS Associates
Bowl Leader
Hi Folks - can someone help with the hierarchical structure as per bands in persistent?
Like what is 7.x, 9.x and 11.x ? Is there anything above 11? I m about to receive an offer and would like to negotiate it properly !
My skill set- Microsoft Azure.
YOE- 12
MBA from ISB Persistent Systems Limited
Coach
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As someone who bills at that rate and who can see revenue numbers, I am lucky if I collect $600k in revenue a year. Just because I billed 1800+ hours a year doesn't mean all that got collected. If I collect $600k, and minus my compensation, overhead etc, I am making the firm about $200k. My bonus would be around $20k, resulting in me getting 10% of the revenue stream. This is the math at most law firms I've encountered.
You should be getting paid more though. Around $180k+
I thought it was common knowledge that a firm is a pyramid scheme.
You can't charge that rate without the partners. If you think you can, go and try. Many do, make their own firm, and keep all that profit. You only charge that $450 because clients want to pay for the partners "and their team." That's you, the afterthought.
$864,000 - total cost of the associate - apportioned overhead expenses = left over profit for the equity partners.
The more you make directly affects their bottom line.
I’m not a partner OP and I’m not the one paying you. You asked where all the extra money goes, I told you, into the partners pockets.
A few factors to consider:
1. Salary is fixed but hours are not. Risk of fluctuation in capacity/busyness falls on the partners not you.
2. Not all time that’s calendared is billed and not all time that’s billed is collected. Realization risk falls on the partners not you.
3. There is overhead. Everything from IT, personnel, insurance, accounting, real estate, etc
4. Ultimately salaries are driven more by market than rates. The more fungible we are, the less we will get paid. This applies to associates and also partners, which is why commoditized work pays less than non-commoditized work.
I’m not trying to suggest that your salary is “high enough” by any stretch. And you should advocate for a raise if you want to. Just noting that the economics are more nuanced than your math suggests. In my firm, we don’t want to layoff associates when work slows for a lot of reasons. In part it’s because we want them there when the work picks up again and also because they are people we care about and don’t want to lay them off if we can avoid it.
Lawyers are underpaid.. I made this argument years ago and everyone felt uncomfortable speaking on the facts because we “make a lot of money”
The problem is most of us don't "make a lot of money"
Goes to the firm and management pockets !!!
I mean $450/hr is no joke, you should probably be making more than $120k if overhead isn't crazy high. I've always heard the rule of thirds: 1/3 profit, 1/3 overhead (rent, technology, etc) and 1/3 aasociate salary.
Paralegals rarely are profitable. So you have to factor in that associate billables go to overhead which include all staff salaries. If you’re looking to see more of a cut from what you make, you gotta hustle and go out on your own. Even then, the first year, you’re usually in the red.
(I say this as a partner with no associates. My boss gave me a promotion. But we’re small. I think he couldn’t afford an associate and two paralegals. I don’t feel tricked. But I eat what I kill. He was very lax with us, but now that I have a say, I’m a bit of a hard ass on staff. Not overbearing. But this is a business. Pull your weight/do your job or start looking for other employment. I work to hard to not have fruits from my labor at the end of the day).
That's capitalism, baby! Associates are the means of production so seize yourself today.