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Joined 1 year ago
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Cake day: June 12th, 2023

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  • I’ve used the 3x multiplier for staff planning at services companies since the early 2000s.

    Perhaps there are regional differences, but they’ve rung true for planning billable rates of return at every services company I’ve worked at in the last 20 years here in AU.

    I realise that the services aspect isn’t relevant, but having the sum of indirect staff costs equivalent to staff salary cost when office space is involved isn’t a massive stretch in my experience. (Indirect costs would include office rent, utilities, infrastructure and a share of shared functions such as IT, HR, facilities etc…)


  • When running a business, you need to budget 3x salary for actual TCO of a staff member:

    1x covers their direct salary 2x covers retirement fund, electricity, office space, and infrastructure items unlike server and laptops for corporate use etc.

    The 3x multiplier is for when you’re a services company, and that represents a possibly profit margin.

    So for signal, your $380k becomes $190k which in my experience is average for a US tech sw dev at a mid to early senior level.

    I donate to signal monthly and I have no problems with the costs they’re posting. I work in SV tech and I’ve seen 20x worse numbers.