Step Into The Fast Lane With More Scalability Than Ever Before!
Intertech Consulting May Be Right For You. Find out!
A mix of FTE and consultants working together for a common goal can make all the difference and has proven to be a key ingredient in successful software development.
Consider These Four Elements Before Adding To Your Valued Development Teams.
Consideration
The FTE and Consulting Cost Difference Is Not As Much As You Think!
Cost
When Comparing Apples-to-Apples, You Have To Consider Two Points
Consultant’s Rate Includes Everything — A consultant’s hourly rate includes their salary plus direct and indirect costs. You must add direct and indirect costs to a FTE base salary to compare apples-to-apples.
Productivity Rate Impacts Comparison —A consultant is based on as near to 100% productivity as humanly possible because they only bill for work completed. In comparison, a full-time employee often has additional company responsibilities and works from a slightly different mindset, bringing a typical FTE developer’s productivity rate in an 8-hour day down to around 72% to 83%. And according to LinkedIn, for additional fields, as low as a staggering 36%.
(Use the calculator in the drop down below to compute productive hourly rate)
FTE Productive Hourly Rate Cost Calculator
Use the calculator and your numbers to identify your employees’ productive hourly rate and the cost difference between your senior developers and our consultants.
FTE = Full-Time Employee
—————————DEFINITIONS:
Base Salary
Base salary is the paid to an employee, not including any benefits, bonuses, overhead, G&A, or raises.
Direct Expenses
These are the expenses related to the employee’s base salary paid by the company that goes beyond the base salary but should be included. Direct expenses include:
• FICA & Unemployment = 9.5%
• Medical Insurance = 7.1%
• Dental & Other Incidentals = 1.5%
• Retirement 401k Match = 3.5%
• Bonus = 6.8%
NOTE: If your calculations are different than these, feel free to enter 0% to 100% depending upon your company’s rates. For Example: – if your “bonus = 15%” and your “401k match = 6%” then together they equal 21%. Next, subtract our number of 10.3% from your number of 21% and add the difference to our preloaded number of 28% (28% + 10.7% = 38.7% for direct expenses rate) .
Indirect Expenses
When determining costs and comparing full-time vs. outsourcing (consultants have these figures included in their hourly rate), these expenses are often forgotten as required costs of doing business and having an employee on staff. Indirect expenses include:
- CEOCFO
- HR & Recruiting Costs
- Finance Department & Tools
- Marketing
- Sales
- IT systems
- Hardware
- Software
- License/Fees
- Support
- Infrastructure
- Mortgage & Interest
- Property Taxes
- Utilities
- Office/(Home Office – if applicable to an incentive) Furniture
- Facilities Expenses
- Supplies & More
NOTE: If your calculations are different than these, feel free to change the percentage to fit your company’s overhead & G&A. For Example: According to a 2018 Deltek survey (source) that included 638 respondents, in companies listed as Small (under $20 million), Medium ($20 to $99 million) and Large (over $100 million), and included over 90 questions, found the average indirect expenses for the different company sizes came in at: Small Business = 56%, Medium Businesses = 57%, and Large Businesses = 48%
Actual Salary
Base Salary plus direct and indirect expenses determine “Actual Salary.
Based on 2080 hours in a year (260 workdays x 8 hours each day) — Minus 168 hours for paid vacation (21 days) — Minus 64 hours paid holidays and (8 paid holidays) = 1,848 — Adjust to fit each employee’s specifics.
Employee’s Calculated Base Hourly Rate
“Actual Salary” divided by “Maximum Hours Available.” based on 100% productivity.
Estimated Daily Productivity
100% equals an 8-hour day without breaks, 87.5% equals a 30-minute lunch break and two 15-minute breaks while the rest of the day is productive. Below are the universally accepted productivity rates:
• Freelance Developer = 96%-98%
• Consultant Developer= 96%-98%
• Full-Time Employee – Developer = 74% to 81%
• Full-Time Employee – Base = 37% to 47%
It is important to remember that corporate required training, events, seminars, expectations, oversight, and other factors take away from actual work and lower the productivity rate of a full-time employee. In contrast, while an outsourced freelance and consulting resource’s hourly rate is based on a much higher production rate per hour due to the nature of their position and expectations (typical rates listed above).
RESULT: Employees’ Productive Hourly Rate
Outsourced resources tend to be at a 96% to 98% productive rate due to their role. Full-Time Employees (FTE), based on multiple research articles and data, tend to run between 37% and 78% productive within an 8-hour workday, depending on their job description. THIS IS THE NUMBER TO USE WHEN COMPARING OUTSOURCED RESOURCES HOURLY RATES & ESTIMATES because their rates include all direct and indirect expenses.
FINALLY:
Take the Consultant’s hourly rate and subtract your senior-most developer’s PHR (Productive Hourly Rate) you just calculated. In doing so, you arrive at the amount you will pay for the expertise and perspective the Consultant has gained by working on multiple projects and teams doing work that your team may only do once.
PRICING NOTE: At Intertech, our hourly rates vary depending upon the role, experience level of the Consultant, and project requirements. This is because we understand that not every project requires everyone on the team to be a senior consultant, and we will identify this for you during the evaluation process based on our experience with similar projects. In addition, specific roles may only require part-time interaction. However, in all cases, Intertech brings added value to your project through our team-driven environment, where consultants are ready to assist when challenges arise. Considering all these aspects, our hourly rate ranges between $110 to $185 an hour with a mean average of typically around $140 and is based on as near to 100% productivity as humanly possible.
Consideration
Project Engagement Impacts More Than Just Productivity!
Engagement
Engagement Impacts Workplace Harmony, Costs, Returns, and Project Productivity
According to a Gallup Workforce Panel study, research indicates that 51% of Full Time Employees are actively looking for a new job at any given time and only 15% of employees are engaged in the workplace, especially when even one or more on a team or within the hierarchy of leadership is an issue.
For this reason, since 1991, Intertech has taken its time to hire the right people rather than grow fast. We are clear on what it takes to be a great consultant and a good colleague, and not everyone fits the mold. For this reason, when available, you get a satisfied proven expert, a team member who is 100% committed to your project, and someone willing to ask the hard questions and address the issues in meetings. And most importantly, you gain an asset in Intertech consultants with the positive energy that resonates across the team, impacting the level of engagement of those you rely on for development daily. Check our availability today!
Project Engagement Impacts More Than Just Productivity!
Engagement
Engagement Impacts Workplace Harmony, Costs, Returns, and Project Productivity
According to a Gallup Workforce Panel study, research indicates that 51% of Full Time Employees are actively looking for a new job at any given time and only 15% of employees are engaged in the workplace, especially when even one or more on a team or within the hierarchy of leadership is an issue.
For this reason, since 1991, Intertech has taken its time to hire the right people rather than grow fast. We are clear on what it takes to be a great consultant and a good colleague, and not everyone fits the mold. For this reason, when available, you get a satisfied proven expert, a team member who is 100% committed to your project, and someone willing to ask the hard questions and address the issues in meetings. And most importantly, you gain an asset in Intertech consultants with the positive energy that resonates across the team, impacting the level of engagement of those you rely on for development daily. Check our availability today!
Consideration
Our Consultants Work From A Proven Development Process That Keeps Them Focused
(Click Graphic To Enlarge)
Consideration
The Quality Of A Developer Resides In Their “Qualities!”
Quality
It’s Good To Know That It’s Easy To Augment Your Best With Our Best When Needed
Additional Benefits Intertech Brings To The Table
No matter the options you select for the recruitment portion of the project, Intertech ensures the right people are on the job.
Project Consulting Benefits
To begin with, we have our consulting department focus on your project needs. In this stage, our team places our consultants to begin the process we have outlined through the years to help achieve success. Our consultants bring these benefits to your project:
- You get a proven commodity (vetted resource)
- You get proven technical proficiency
- You get a person with a proven track record
- Our consultants save you time and money when you compare it with a bad hire
- You get someone who’s done the work before
- You get someone who can lead a group to the end goal
- You get someone who can bring something across the finish line and mentor the team along the way, if needed.
- A consultant only bills for time worked
- A consultant eliminates your direct and indirect costs (included in the hourly rate)
- Your team gets someone they can turn to if they have questions or need additional support afterward (takes the load from you).
- You get ongoing support,post-engagement
…and so much more.
Two Additional benefits Intertech Offers To Consulting Customers
Assistance With Contract-to-Hire Candidate Vetting & Onboarding
The most significant benefit to Contract-to-Hire is speed and flexibility! Contract-to-hire gives you time to make a hiring decision while work is done rather than commit immediately. It also gives you time to ensure the candidate is a great fit, which is not always evident during the interview process no matter who conducts it. If you decide to focus on Contract-to-Hire, below are some of the benefits our recruiting team brings to the project:
- Time savings
- More eyes focused on finding the right people
- A “try before you buy” policy that includes a two-week grace period before billing
- Cost savings by hiring assets that are more likely to be a perfect fit and stay
- Multiple interviews conducted by tech professionals
- Replacement options for someone that doesn’t pan out in 3 weeks.
- Flexibility in determining when you want to convert a candidate to FTE (budget planning)
- No direct or indirect costs while the candidate out is on contract (included in hourly rate)
…and so much more.
Assistance With Direct Hiring
Another benefit Intertech offers to our consulting clients is access to our recruiting team for direct hire. It does not allow you to evaluate the candidate on the job and with your team, but utilizing our services does improve the odds of a good hire. If you prefer to focus on Direct Hire, below are some of the benefits our team brings to the equation:
- Time savings using our IT job posting reach
- More eyes focused on finding the right people
- Cost savings by hiring assets that are more likely to be a perfect fit
- Multiple interviews conducted by tech professionals
- Replacement options for someone that doesn’t pan out in 3 weeks.
…and so much more.
Consideration
Scaling Top Talent For A Specific Project Is Now Easy!
Scalability
We’ll Stay As Long As You Need Us, But We’ll Also Add Or Roll Off As Required
Scaling Top Talent For A Specific Project Is Now Easy!
Scalability
We’ll Stay As Long As You Need Us, But We’ll Also Add Or Roll Off As Required
Consideration
Three Great Reasons To Let Intertech Help Your Team Build Software!
To understand why so many companies rely on Intertech for their software co-development, education and mentoring, you must understand the importance we place on staying up-to-date with the most current technologies and methodologies and hiring the right people for your job.
“When an outside firm asked over 4000 of our customers these questions, we immediately understood why they trusted Intertech!”
Say “Yes” To Intertech!
- Would you use Intertech again? 99.55%
99.55% of customers answered YES!
- Are you happy with Intertech? 99.55%
99.55% of customers answered YES!
- Would you refer Intertech to others? 99.70%
99.70% of customers answered YES!
U.S. Bancorp Trusted Intertech. You Can Too!
Check Out Our Amazing List Of Customers That Trust Us!
- Accenture -to- Volkswagen
- A
- B-C
- D
- E-F
- G-H
- I-L
- M
- N-P
- Q-R
- S
- T-U
- U-Z
- Helping You Modernize & Pivot To New Technologies
DISCOVER THE INDUSTRIES AND ORGANIZATIONS THAT INTERTECH HAS DIRECTLY IMPACTED THROUGH APPLICATION DEVELOPMENT, MENTORSHIP, AND ASSISTANCE IN PIVOTING TO A NEW TECHNOLOGY.
· 3wire
· 3M
· AAA – NCNU
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· Accelebrate
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· Accenture
· Admiral Insurance Company
· ADP
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· Ambac Assurance Corp
· American Academy of Neurology
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· of Ambulatory Surgery Facilities, Inc.
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· Baker Hostetler LLP
· Bank of America
· Bank of Hawaii
· Bank of North Dakota
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· Belco
· Bemidji State University
· Berkley Risk Administrators Company, LLC
· Best Buy
· Best Vendors
· BioScrip
· Black Box Network Services
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· Boeing
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· Cars.com
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· Carter Mario Injury Lawyers
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· CBS MarketWatch
· CCCI
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· Center For Diagnostic Imaging
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· Ceridian
· Champion Air
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· Chelsea Technologies
· Children’s Hospitals & Clinics of MN
· Chippewa Valley Technical College
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· City of Atlanta
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· Cleveland Clinic
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·Comcast
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· Deloitte
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· Department of Interior
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· DigiKey
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· Lockheed Martin
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· Logitech
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· Marketing Architects
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· Martin Williams
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· Matt Wagner
· Mayo
· Mayo Clinic Global Products & Services
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· Micro General
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· Miles Kimball
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· Oxy
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· Phacts
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· Power Systems
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· Public Disclosure Board
· QRS Diagnostic
· Questar
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· SAP
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· SoftSource Consulting
· Software Essentials
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· St. Cloud State University
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· Starz
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· State of MN
· State of MN/Dept of Administration
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· State of MN/Finance
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· State of ND
· State of Ohio
· Staywell
· Steady Rain
· Stellent
· Stonebridge Group
· Strategic Technologies, Inc.
· Strong Capital Management
· Summers Manufacturing
· Swanzey Internet Group
· Syntel
· Target
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· Tennant Company
· The Bancop, Inc.
· The Bergquist Company
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· The Sportsman’s Guide
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· TransForm Pharmaceuticals, Inc.
· Transport Corporation of America
· Travelers Express
· Tribune Review Publishing
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· U of M
· U.S. Bureau of Reclamation
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· University of Arkansas – Little Rock
· University of Michigan
· University of Minnesota
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· U.S. Bancorp
· U.S. Navy
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· Volkswagen
· VW Credit
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· Watlow Electric Manufacturing Company
· Web Age Solutions
· Wells Fargo
· Williams Lea
· Willis
· Winona State University
· Wolters Kluwer Financial Services
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· X-eeto, Inc.
· Yada Systems, Inc.
· Yakima County
· Young America Corp
· Zemmels Consulting
· Zinpro Corp.
DISCOVER WHAT WE CAN DO FOR YOU! CONTACT US TODAY!
Intertech Complete™
If you are trying to get caught up on a backlog of project requests or need one or more dedicated teams to get in, take care of business, and roll off, Intertech Complete™ is your solution.
Intertech Prime-Aug™
If you want to augment development with the experience that can guide a team, pivot to new technology, or add an outside perspective based on best practices, consider Prime-Aug.™
Intertech Assist™
