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When is bonus payout for Deloitte?
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The general rule of thumb is that an individual employee’s hourly salary should be 1/3 their hourly billable rate. An hourly billable rate should include 1/3 for profit, 1/3 for overhead, and 1/3 for the employee’s salary.
If the billable rate is $100 an hour, the resource’s hourly salary should be around $33 an hour.
This hits differently… like right in the head
Something seems very off if the delta is only 45k
Would be very careful OP as your firm is barely breaking even or negative EBITDA with your rate card if you include bench time, insurance, 401k, PTO, etc
Should typically be 100-200% more your base comp
Would start interviewing just to be safe
This can’t be real. I refuse to believe someone this ~can’t even come up with a term~ could actually be working in consulting.
Mentor
OP- If gasoline costs $2.11 gallon to extract, refine and distribute should gas stations charge customers $2.11?
You should get a paycut if that Delta is just 45k. You are unprofitable for the company.
Your bill rate should be several x the salary you get.
Coach
My bill rate is 10x my hourly rate
Coach
My title is off btw, but I don't think that's unusual for T2s. MBB rates are probably 25% higher.
Do you not think your employer should make money from you?
If you want to have 1:1 parity go be an IC.
Unlikely. That $45k difference includes a lot of overhead as well as profit — would need a business case for why you should make more and your firm, effectively, makes less.
Interesting, so what I’m gathering then is that I should probably look elsewhere for salary bump. Unless of course , I get promoted, which in turn would raise my billing rate and salary to match
Oh my
Subject Expert
I make like 176k TC and my current 1 SOW is for about 410k. Seems about right to me tbh.
There’s also my benefits on top of TC, covering overhead (people on the bench, leadership who don’t bill much, etc) and profit
I allways wondered why consultant's bonus structure is not directly tied to the whole year billables. In sales you have a number you either get TCV commish or traget achievements multiples. Aka very clear line from personal contributions to revenue to personal incentives.
In consulting incentives are completely discretionary! No? You can crush it all year but then get totally hozed by a bad business decision at the c-level.
A good salesperson will very directly make more revenue for the company, a good consultant can indirectly influence a broader discussion that will result in the client spending with other companies. I'm all for tying bonus in some way to attainment, though it will always be to a much lesser degree than the typical sales plan.
If you think your a high performing seller, go get a sales role, though note that your base will be much smaller, you'll need to make up the difference by selling.